What is it?
This index provides a monthly reading of Annualized turnover, specific to employee and independent contractor drivers within the truckload segment of the North American trucking industry. The turnover results for reporting carriers are ‘annualized’ in this index to provide the viewer with a better understanding of results relative to a calendar year basis. The carriers reporting the data for this index are participants in Truckload Carriers Association’s TPP program.
Formula: (drivers departed * 12) / [(Driver count at the start of the month + driver count at the end of the month) / 2)] * 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?
Higher turnover results indicate difficulty, for reporting carriers, to retain qualified drivers to fulfill capacity obligations. Higher turnover can result from internal and external (other industry) competition for labor. To reduce turnover, carriers will increase base and incentive compensation, adjust their freight networks to be more ‘driver friendly’, and provide additional benefits to offset competing forces for human capital.