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What the MDI Means to Carriers

As we enter into the month of March, there are a number of things to be very aware of in the industry – most importantly is the tightening truck capacity.

Internet Truckstop has just posted their MDI at 15.52 for this week.  That is a 25% jump since last week!  For those that need a bit more clarification on this, the MDI is the Market Demand Index which measures Loads vs. Trucks.  An MDI of 7 means there is an equal number of loads to trucks, nationwide average.  Anything greater than a 7 on the MDI means there are MORE loads than trucks.  Last year for this time, the MDI hit 15.62 (almost identical to what it is today) and that equated to 16x more loads than trucks!

What does this mean for you?  It means finding loads should get a little easier.

It also means you want to be approved by and set up quickly with the Broker you are using.  Shippers will start to notice that truck demand is increasing rapidly, which means their rates are going to have to go up in order to move their loads.  For most of them, that means passing those higher freight costs on to their customers as well, which takes time – so be patient and stay competitive. Don’t demand too much too soon, or you might put yourself out of business!

When those rates go up, you’ll make more money if you manage to provide outstanding service in the meantime. Make it so that your Trucking Company will stand out when Brokers are looking for trucks. Use this time to build a relationship with the Broker dispatchers, so that you can be the first call they make when a load needs to be moved!

Given everything else that Carriers have to deal with – more frequent inspections, new Hours of Service and other laws, EPA restrictions, etc…  Carriers are having a much harder time surviving.

AmeriTrust is trying to help you be prepared with knowledge. We’re constantly striving to keep a close eye on the industry and market conditions.  We always appreciate the feedback, suggestions, and conditions that you tell us about as well.

Be competitive now, so more of you Carriers can stay on the road. Have a great day and drive safe!

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