Question: Mid - West Trucking is a medium - sized TL carrier based in Des Moines, Iowa. Like many other carriers based in Iowa and surrounding

Mid-West Trucking is a medium-sized TL carrier based in Des Moines, Iowa. Like many other carriers based in Iowa and surrounding states, Mid-West Trucking faces much demand for eastbound shipments (because in most cases productions of goods take place in Midwest areas and consumptions take place in large cities in East Coast regions). Since not much demand exists for westbound shipments (from East Coast cites to midwestern areas), the carrier had struggled with finding backhaul customers for many years. Historical data showed that only about 20 percent of the time the carrier could find backhaul customers, meaning that about 80 percent of the time the carrier had to return its trucks to Iowa empty (no revenue load). For this reason, Mid-West Trucking now provides a large price discount for the westbound shipments to capture the customer demands that would otherwise not exist (needless to say, generating a little money on backhaul is better than generating no money on backhaul).

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