Tender lead times last week hit their highest value since SONAR released tender data in 2018, averaging 3.76 days between tender and requested pickup. The previous high of 3.68 was set last year at the same time. Is this a longer-running trend or just a seasonal glitch?
Christmas is typically the seasonal peak of the Outbound Tender Lead Time (OTLT) index. Lead times increase leading into major national holidays as transportation managers tender loads for pickup for the period of time beyond the holiday. Staffing is typically limited at both shipper and carrier, meaning increased preparation and planning are required to limit disruptions to their operations.
With Christmas and New Year’s Day landing on Wednesdays, schedules are incredibly challenging to navigate, which probably helped push lead times higher than normal. The data suggests there is a longer-running trend component, however.
