What is it?
This index provides a direct measure of aggregated profitability for truckload carriers. The reported data for this measure includes linehaul revenue, accessorial revenue and total operating expenses (not including income tax). The carriers reporting the data for this index are participants in Truckload Carriers Association’s TPP program.
Formula: ((Total Operating Income before Tax) / (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 is common measure used within the trucking industry for expressing the degree of profitability. This is the inverse of Operating Income %. In strong economic periods, we expect to see below normal results relative to historical results (e.g. 85% -95%). In weak economic periods, we expect to see below normal results relative to historical results (e.g. 95% -105%)