What is it?
This index displays the total number miles traveled, during the month, by tractors owned or contracted by the reporting carriers. Carriers reporting data for this index, provide a truck count whether seated or unseated. If the truck is plated by the carrier, it is counted. As such, those with a high % of unseated tractors will be penalized in the form of a lower relative result. The carriers reporting the data for this index are participants in Truckload Carriers Association’s TPP program.
Formula: ((Total Miles / (Truck Count)) / (Number of Weeks in Month)
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?
This index provides a measure of performance and health for the truckload segment. Higher results, relative to historical values indicates a strong market. Conversely, lower measures indicate weaker economic activity. Since miles are the primary variable for determining carrier compensation, it is in the carrier’s best interest to maximize miles to enhance total compensation. This index is widely used by carriers as a key performance indicator.