KPIOperations & Supply Chain

Load Factor

Percentage of available cargo or passenger capacity utilised on completed journeys

What is Load Factor?

Load factor is the percentage of maximum carrying capacity that is actually used. It shows how full vehicles, containers or services are.

Running half-empty costs almost as much as running full, so a higher load factor lowers the cost per unit moved.

How this KPI is measured

Function
Operations & Supply Chain
Sub-function
Load Management
Industry
Logistics & Transport
Type
Lagging
Impact
Revenue
Unit
%
Measurement frequency
Daily / Weekly
Formula
(Actual load carried / Maximum possible load capacity) × 100

How to calculate it

Divide the actual load carried by the maximum possible load capacity, and multiply by 100.

For example, if a truck carried 18 tonnes with a capacity of 24 tonnes, the load factor is 75%.

Measure by weight, volume or space, according to what limits the vehicle, and use the same basis each time.

Where it is used

  • Cutting transport cost

    Fill vehicles better.

  • Reducing emissions

    Fewer trips per load.

  • Planning capacity

    Match supply to demand.

How to improve it

Tips and common mistakes

  • Do not exceed legal weight limits.
  • Consider weight and volume limits.
  • Compare by route.

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