What is it?
Average Length of Haul captures the number of reported monthly miles, divided by the number of reported loads during the same interval by carriers participating in the Truckload Carrier’s Association’s TPP program (TCA Profitability Program).
Formula: (Total Miles Driven) / (Number of Loads)
Who is interested?
Anyone that has an interest in freight movement patterns. i.e. Shippers, freight brokers, fleet managers, executives in a transportation company, owner operators.
What does it tell me?
On an aggregated basis, this index provides insight into decisions that carriers are making with respect to freight availability and pricing (supply and demand). In a robust freight market, carriers will tend to ‘tighten’ their freight network, thereby reducing the number of miles traveled per load. Conversely, when supply of freight is constricted, carriers may seek freight opportunities outside their preferred networks and lanes, thereby increasing the number of miles traveled per load.