What is it?
Brokerage Revenue (% of Total Revenue) calculates the total amount of revenue generated by a carrier’s brokerage operation/division, expressed as a percentage of revenue generated by the carrier’s asset and asset light activity. The carriers reporting the data for this index are participants in Truckload Carriers Association’s TPP program.
Formula: (Brokerage Revenue) / (Brokerage Revenue + Linehaul Revenue + Accessorial Revenue + Fuel Surcharge Revenue)
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 shows the degree of brokerage activity performed by carriers relative to their asset-based operations. Typically, carriers will use their brokerage divisions to handle the ‘over-flow’ freight tendered to their asset-based division. In a robust freight market, the percentage of overall revenue will tend to track higher as the capacity from the asset-based division is restricted by the supply of drivers and trucks.