How to Limit Trucking Deadhead. We will let you enter all of last quarters data youll find its easy with our One Minute Invoice Entry system. But its giving us a lot more in data to help us make good decisions if we look at the information. If you find that there are, weigh the pros and cons (or do a cost-benefit analysis) before deciding to accept the load. On a trip across town this morning, I saw 3 bobtails and 3 empty flatbeds. But how exactly do you calculate deadhead miles? Another strategy is to add fuel surcharges as part of the quoted rates. Because it allows you to quickly determine the profitability of a load. Deadhead miles are those unprofitable miles you may have to drive with an empty truck between loads. So how do you cope with this problem? Assuming you drive 125,000 miles a year at 60 mph with a fuel efficiency of 7 miles per gallon, your truck consumes 17,857 gallons of fuel. When traveling empty, reduce your trailers tire pressure. You can even calculate the cost per mile without these helpful aids because it is quite simple but very important! In this way, it can absorb bumps better and keep the trailer from bouncing around and shaking. At this rate, it wont take long for deadhead miles to cut into profits, making it difficult to pay. What your expenses per mile are. And before accepting any load, check if there are other closer loads. Keep in mind, if you have operated your truck only for a short time, the cost-per-mile factor may be misleading, because you do not yet have comparable historical data from previous years. Designed by Elegant Themes | Powered by WordPress. Deadhead miles are a fact of trucking life. If you want your business to hit its financial targets, you must drastically reduce your deadhead miles. Because of that, theres a DOT requirement to keep your logs in order and indicate when you are running an empty trailer. It will tell you what your revenue per mile is. The company overview report is key to becoming a successful transportation business. Generally, most company drivers dont need to be concerned about deadhead miles. Deadhead miles are the number of miles you need drive from the point of unloading to the point where your new load is ready for pickup. Some guys just throw receipts into an envelope. Its available wherever you have wifi on your phone or on your tablet. IFTA login is meant to be a way to streamline the tax payments we truckers and fleet managers have to pay. I decided to accept that unless youve got the perfect lane, youre going to drive empty. Let us prove it to you. You can use a simple form or a computer program to calculate your cost per mile. The computer does it for you. Our TruckingOffice load planning software gives you vital information about the client, cargo, and any other facts pertaining to a load to help you make the most of the miles you drive. Being a little philosophical about it makes the time and miles less stressful. When we started TruckingOffice, my father and I sat down and hashed out what needed to be available to owner-operators and fleet managers. Like deadhead miles, we tend to forget them as unimportant until its time to pay the IFTA. Lots of truckers forget a few things like the truck loan payments and the insurance premiums. Your email address will not be published. So, avoiding deadhead miles seems like a good plan, right? I learnedwhat I need to get paid per mile to make a profit. Some trucking companies will pay for deadhead mileage after the first 100 miles, although it isnt required. But this is a mistake. Well give you a free trial to every part of our trucking management solution software, What to Look For When Deciding on an ELD Provider, The 5 Most Common Cash Flow Errors in Trucking Management, Is Trucking a Numbers Game? Well give you a free trial to every part of our trucking management solution software. Look at it this way: an empty truck that gets around 5 mpg can cost over $100 for a 200-mile trip, depending on gas prices. You can realize savings of thousand dollars a year just by driving your truck at 60 mph. It burns gas, wears out your tires, and pulls down your potential profit. Deadhead miles are those unprofitable miles you may have to drive with an empty truck between loads. Your email address will not be published. If you want your business to hit its financial targets, you must drastically reduce your deadhead miles. I said we need a company overview report that puts the key numbers into the truckers hands. Or the extra winter fuel additives? Little things add up. However, owner/operators dont have that luxury. An empty rig is harder to control in strong wind or inclement weather. Look at it this way: an empty truck that gets around 5 mpg can cost over $100 for a 200-mile trip, depending on gas prices. Why is it important to know your cost-per-mile factor? I remember one guy had a cigar box. Empty miles make up a significant share of all miles driven in the trucking sector. But it got me thinking about deadhead miles and the IFTA. I decided I wouldnt go more than 50 miles deadhead if I could help it. Regular accounting programs dont compute a company overview report because accounting programs dont think of miles the way truckers have to. Study the following examples to see the dramatic difference: Assuming you drive 125,000 miles at 70 mph with a fuel efficiency of 5.5 miles per gallon, your truck consumes 22,727 gallons of fuel. Deadheading is still a problem in the trucking industry. No trucker or fleet manager likes deadhead miles. When computing this minimum rate, take into consideration the cost of fuel plus the prorated wear and tear cost of tires. At this rate, it wont take long for deadhead miles to cut into profits, making it difficult to pay IFTA taxes to get a new IFTA sticker. It burns gas, wears out your tires, and pulls down your potential profit. You need to know two factors: (1) your operating expenses for a specific time period (a month, a calendar quarter, or a year) and (2) the miles driven in the corresponding time period. (You only need full inflation on a full load.) For example, your broker offers you a load that pays $1,000 for 850 miles, but you have to deadhead (drive empty) 350 miles in order to get to the loading location. I needed data to help me, not a random number Id picked out of the blue. Let us assume your cost-per-mile factor is 69 cents, it will cost you $241.50 out of your own pocket just to drive your truck to the pick-up location, and it will cost you another $586.50 (850 miles times 69 cents) to deliver the load, should you decide to do so. 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