What is it?
This index expresses the number of empty (unbilled) miles driven relative to the total number of miles driven during the month, expressed as a percentage. The carriers reporting the data for this index are participants in Truckload Carriers Association’s TPP program.
Formula: ((Total Miles – Revenue Miles) / (Total Miles))* 100
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?
In a robust freight market, carriers generally tend to reduce the geographical footprint of their freight network, and increase the utilization of their assets to reduce the number of miles traveled which are unbilled (to shipper). Conversely, in a soft freight market, freight network footprints are expanded and the number of unbilled miles increases as well. This also indicates increased competition for backhaul freight, requiring carriers to generate a large number of unpaid miles to reach the origin of the backhaul freight.