MCI is a new way of gauging a market or area to determine if it is cool, neutral, or hot and to forecast what that area will be like during the next 7 days. Think of it like a credit score, but for determining how hot or tight a market is, with a scale of-100 (cold) to 100 (hot), where hot means demand for trucks is high.
Prior to MCI, DAT used a heat index (Hot Market Map) to determine which areas had the highest load-to-truck ratio… the darker the color, the higher the load-to-truck ratio. However, this didn’t really take everything into account, and wasn’t a true indication of whether an area was hot or not. MCI aims to fix that! Let’s learn how…
First off, unlike a straight up load-to-truck ratio, MCI takes into account several factors including:
- Load-to-truck ratio
- Historical trends
- Load searches
- Truck searches
- Overposting detection
Now we’re talking! Adding searches to the equation significantly helps as we now include the behavior of people that don’t post too often, like a carrier. Heavy searching in an area is an indicator of how ‘hot’ the market is there.
And, for the users that tend to over saturate a market with the same loads over and over again, MCI takes that into account too and tries to strip away duplicate postings for a more accurate gauge of an area.
Put all this together with the ability to forecast out a week and you have the new Market Conditions Index, capable of telling brokers and carriers alike what the current and future state of any market/area is at any time.
To help understand how the gauge works, refer to the following “cheat sheet”.
Hot or Tight Markets
- Trucks are in demand
- Rates typically higher
- Tends to favor carriers
Cool or Loose
- Trucks are not in demand
- Rates typically lower
- Tends to favor brokers