What is happening: According to the Tender Lead Time Index, Shippers have increased their lead times on orders by 3% to combat a volatile market.
Why is this happening: Shippers have increased lead times to balance out higher rates and lower capacity through 2018. Increasing lead times is one way to combat such volatile conditions.
Capacity: Capacity in the US has decreased over the past two years, with hurricanes, ELD, and a booming industrial economy all likely factors.
Lead time: The average lead time in February through June was 2.57 days. July through October rose to 2.65 days. This could hint at the beginning of a shift.