The Load Balance Index (LBI) is designed to measure the relative balance between outbound and inbound freight in a market. While HAUL compares the difference between outbound tender volume (OTVI) and inbound tender volume (ITVI), LBI normalizes that relationship when comparing markets that are not the same size using the formula:
LBI = (OTVI − ITVI) / (OTVI + ITVI) × 100
By scaling the imbalance against total volume, LBI converts raw headhaul pressure into a percentage-based metric. This allows for direct comparisons across markets of different sizes without requiring manual adjustments.
Anyone who is interested in freight movement patterns; shippers, brokers, fleet managers, executives of transportation companies, and owner operators
LBI reveals how directionally imbalanced a freight market is and the degree of outbound versus inbound pressure. Positive values indicate a headhaul market where outbound demand exceeds inbound freight, often signaling tighter capacity and stronger rate leverage for carriers. Negative values indicate a backhaul market where inbound volumes outweigh outbound freight, typically creating softer pricing conditions.
Because it accounts for total activity in the market, LBI makes it easier to compare freight balance between large hubs and smaller markets and to identify where pricing power and coverage risk may be building.
