What is the TABI Pricing Pressure Index and how is it calculated?

The TABI Pricing Pressure Index, published monthly by rate management platform Tabi, measures the balance of pricing power between brokers/carriers (0) and shippers (100). It analyzes over 1.5 million spot loads monthly, factoring in load volume, margin, awarded margin, and bid margin. The current reading of 36 indicates brokers and carriers still hold the upper hand, but the 7-point increase over 30 days signals measurable market softening toward shippers.

Why are shippers experiencing pain later than brokers in this market cycle?

Shippers typically feel market shifts 3-4 months after brokers do, according to Rush Feldhacker of Tabi. In capacity-driven markets, shippers cannot offset rising transportation costs with volume growth (unlike demand-driven booms). Contract rates provide only temporary protection since tender commitments are not enforceable. By the time shippers see tender rejections widen enough to disrupt operations, brokers have already adapted their strategies.

What strategies are successful brokers using to maintain margins as pricing power erodes?

Winning brokers are analyzing win rates by lane and customer, then deploying capacity strategically where the largest opportunity exists. They pursue only profitable freight and avoid volume-chasing, a strategy that differs from approaches that succeeded in earlier market cycles. Data-driven pricing discipline, rather than spot rate intuition, is separating successful brokers from those losing margin in the normalizing market.

How does capacity-driven rate softening differ from demand-driven market shifts?

In demand-driven booms, higher volumes create more opportunities to profit even as rates soften. Capacity-driven tightening produces similar rate chart patterns but fewer loads to cover, reducing profit opportunities. For shippers, this is worse: they cannot grow volumes to absorb rising costs, making a capacity-driven rate increase structurally more painful than a demand-driven spike followed by normalization.

What should shippers expect in the second half of the year?

Disciplined data use will separate brokers who capture peak-season upside from those who miss it. Shippers should anticipate continued pricing pressure but with slightly less broker leverage than earlier in 2024. Brokers still making decisions 'from the hip' will chase unprofitable volume, while those enforcing pricing rules by lane and customer will remain selective, potentially creating supply tightness during peak season.

Procurement

High Impact

Broker Pricing Power Erodes: Spot Market Shifts Favor Shippers

Aug 26, 2026

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The signal

The freight spot market is experiencing a measurable but incomplete power shift from brokers and carriers toward shippers, according to new data from Tabi's Pricing Pressure Index. The index currently reads 36 on a 0-100 scale (where higher scores favor shippers), up 7 points over the past month. However, brokers and carriers still maintain significant pricing advantage compared to historical norms and continue to secure profitable volumes.

The critical insight is that this market transition operates differently than previous cycles: capacity-driven rate changes hit shippers harder than demand-driven softening because their own freight volumes remain flat, preventing them from leveraging scale benefits. Additionally, shippers typically lag market reality by 3-4 months, meaning many are still unaware of the cost pressures building in their supply chains. The winners emerging from this environment are brokers using data-driven pricing strategies tied to win rates by lane and customer, rather than chasing volume indiscriminately.

This structural shift has major implications for procurement teams planning second-half budgets and capacity strategy.

#freight-pricing-power

#spot-market-trends

#pricing-pressure-index

#broker-leverage

#capacity-driven-rates

#shipper-costs

#market-normalization

#transportation-costs

#freight-brokers

#logistics-strategy

Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

this month

What if spot market pricing pressure increases another 15 points in 60 days?

Model a scenario where the TABI Pricing Pressure Index rises from 36 to 51 over the next two months, representing accelerated erosion of broker pricing power. This would signal a substantial swing toward shipper negotiating position. Simulate the impact on transportation procurement costs, spot rate availability, and contract rate renegotiation timing for a mid-market shipper with 40% spot-market exposure.

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Simulation Suggestion

this month

What if data-driven brokers capture 30% more margin than competitors during peak season?

Model the competitive advantage scenario where brokers using lane-by-lane win-rate analytics and capacity strategy optimization outperform peers using traditional volume-chase methods during the second-half peak season. Simulate shipper procurement challenges when capacity becomes fragmented across high-margin and low-margin brokers, and assess the cost impact of shipper inability to consolidate volume.

Run this scenario

Simulation Suggestion

strategic

What if tender rejection rates increase by 12% as shippers feel market pressure?

Simulate the operational impact of rising tender rejections as shippers begin to feel the capacity-driven rate squeeze and demand better pricing. Model how this affects broker capacity planning, lane profitability, and shipper service levels across a geographically dispersed network. Account for the 3-4 month lag before shippers fully react, and assess the cascading effect on procurement timelines.

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