What is it?
This index provides a measure of carrier’s net fuel expense expressed as a percentage of net revenue. Net Fuel Expense, which is calculated as Gross Fuel Expense minus Fuel Surcharge Revenue. This index provides users with the ability to measure the optimization of their fuel surcharge program versus their peers. The expense reported is specific to the reporting carrier’s company-owned tractors/trailers. The carriers reporting the data for this index are participants in Truckload Carriers Association’s TPP program.
Formula: ((Net Fuel Expense) / (Linehaul Revenue + Accessorial Revenue)) * 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?
This index is not a measure of fuel efficiency. It is a measure of the performance/effectiveness of a carrier’s fuel surcharge program. Ideally, carriers should seek to achieve a lower result relative to their peers.