What is it?
Outbound/Inbound Average Length of Haul captures the daily mileage of tendered loads leaving and entering each of the 135 markets and states.
Formula: total haul miles / total number of loads
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?
Daily length of haul measurements give insight into the potential risk to capacity in a market based on average trip distance. The longer the length of haul out of a market indicates there is more risk to capacity than one with a shorter length of haul, due to the fact that the trucks are not able to return to the market of origin as easily. The index, when paired with tender rejection data, also adds depth to your analysis of what type of freight is exiting the market. I.e. increasing OALOHA and OTRI gives a potential explanation that longer haul freight is less desirable from the market at that time.