Market Conditions uses a scrubbed load count and truck count ratio, to remove incorrect, incomplete or duplicate data sets so that the data is cleaned up and accurate. This data is scrubbed to remove high over posting/searching behaviors.
Note: Over posting/searching is defined as being over 2 standard deviations over your companies prior 90 day behavior. For example, customers who do scripted searches on our load board, bulk deletes & reposts of loads
For each geography, this ratio is normalized by its percentage of the national load count volume to calculate a metric of demand.
This resulting scrubbed and normalized ratio is then mapped to a scale of -100 to +100 for display. For each
individual equipment type, there are 7 range labels defined to indicate the following:
- Very Tight Capacity
- Moderately Tight Capacity
- Slightly Tight Capacity
- Neutral Market
- Slightly Loose Capacity
- Moderately Loose Capacity
- Very Loose Capacity
For example, currently, Very Tight Capacity starts at:
- Van +45
- Flatbed +93
- Reefer +84
These values for each range are determined by examining 2 years of historical values and dividing them into 7 equally sized groups. In other words, each group will contain approximately the same number of occurrences over time of each of the 7 values (“Very Tight Capacity”, “Moderately Tight Capacity”, etc.)
Range Label Definitions
|
Volume of Loads/Trucks
|
Very Tight Capacity |
A lot More Loads Than Trucks And/or the imbalance is heightened by a high volume of loads |
Neutral Market |
Relatively equal Loads & Trucks And/or the imbalance is negated by a low volume of loads |
Very Loose Capacity |
A lot Less Loads Than Trucks And/or the imbalance is lessened by a low volume of loads |
When analyzing market data, consider the following:
- Inbound
- Inbound volume may not be reflected in outbound volume because inbound trucks might not truly be
available as they could have a contract already for a return load that isn’t posted on our board. Every
inbound load represents a truck that has to go out. But whether that happens depends on if they have a
contract to go out or if they are willing to deadhead. They could either be deadheading here because
they know there’s a good location nearby they can get a load or they are headed home. They could also
have a contract taking them there that’s not on our board which could explain discrepancies between
inbound and outbound volumes.
- Inbound volume may not be reflected in outbound volume because inbound trucks might not truly be
available as they could have a contract already for a return load that isn’t posted on our board. Every
inbound load represents a truck that has to go out. But whether that happens depends on if they have a
contract to go out or if they are willing to deadhead. They could either be deadheading here because
they know there’s a good location nearby they can get a load or they are headed home. They could also
have a contract taking them there that’s not on our board which could explain discrepancies between
inbound and outbound volumes.
- Trucks Posted to "Anywhere"
- Trucks are posted from a location, so we know where they are headed outbound, and they can post their destination as "anywhere". We count these as part of the Outbound totals, but we drop them entirely from Inbound as we can't truly ascribe them to any particular location. They almost certainly have places that they won't seriously consider going, and we can't say with any confidence where they are headed.