Tender rejection rate

Tenders refused over tenders offered, per lane per week, from the broker's own tender log, against each lane's baseline. It rises weeks before spot rates do. The cost per rejection is the cover rate less the contracted rate, and the rising lanes are the shipper conversation before the lane goes to spot.

DefinitionTenders refused over tenders offered, per lane per week, from the broker's own tender log, against each lane's baseline. It rises weeks before spot rates do. The cost per rejection is the cover rate less the contracted rate, and the rising lanes are the shipper conversation before the lane goes to spot.

Own log over the index

The index says the nation tightened. The log says which lane, which carrier, what cost, this week.

Split by carrier

A lane looks tight when one carrier has repriced.

How it is computed

Tenders refused divided by tenders offered, per lane per week, against each lane's own history.

Example

A lane's rejection rate rose from 8 to 30 percent over six weeks. The shipper's system has begun routing to the next carrier first.

Where it goes wrong

Seen as an operations number. Each rejection teaches the shipper to call someone else.

Articles that use this term

Board and management reporting

Cost to serve by industry: what the account costs beyond the goods, on twelve desks

Cost to serve is what it takes to serve an account beyond the product, and what that is differs by desk: drops and returns for a distributor, adviser hours for a wealth firm, support tickets for a SaaS company, pursuit hours for a consultancy, detention charges for a forwarder. This hub gives, for twelve industries, the cost components, the rate each is stated at, the source, and the measure it feeds, with the guide for each.

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Tender rejection rate by lane: the capacity signal in your own tender log

How a freight broker reads its tender log as a capacity signal: rejections over tenders per lane per week, the lanes where the rate rose against their own baseline before spot rates did, the carriers rejecting most on each lane, the cost of a rejection in the spread between the contracted rate and the cover rate, and the shipper conversation that a rising rejection rate should trigger before the lane goes to spot.

16 Sept 20262 min read