Deadhead and team miles

[Streakn1]

I'm interested in hearing how the current economy has affected your deadhead miles this year. What is your breakpoint when it comes to your deadhead percentage? Also, if you are a team truck is your carrier running you on team or solo miles on a regularly basis this year? I'm not asking that anyone post income amounts, that is a private matter that does not need to be shared here.

For us our first quarter stats are as follows:
Deadhead (including miles to home, shop,etc) = 6993mls 24%
Loaded miles = 28839mls 76%
Avg total run miles 1378mls

Note: Out of route miles to home, shop, etc equals 3% of all deadhead miles.

We are quite happy with our first quarter results even though we've seen an increase of about 5% in our deadhead miles compared to the last quarter of 2008. I would attribute this to freight throughout the trucking industry declining slightly and causing trucks to travel farther to the next load. It is best to stay busy rather than wait an extra day or two for closer loads in my opinion. Within reason of course.. We have always felt that it is better to go to the freight than to wait for it to come to you as long as the load turns a profit. Flexibility may be important here!

Also, comparing with our first quarter of 2008 pulling a reefer trailer, deadhead average of 40% plus, and avg total runs being less than 750mls to the first quarter of 2009, need I say more!

 

[mjolnir131]

It's so Fraking over the board that telling you or anybody an average would be meaningless.

p.s. yes I'm using the re-imaged spelling but like both versions, rare i admit but it's true

 

[fastrod]

I am solo in a van and I return home after every run so my deadhead is at 50% all the time. This is the way I have always done it so there is never any year to year change.

 

[Scuba]

Since i moved to a flat rate for all miles i don't care what my dh is the only difference is no fsc on my dh. This mini im on is paying $489.00 with my dh

 

[babs3361]

We to have gone to the all miles paid and no longer worry about the DH miles. I'm sure if I figured out my DH it would almost be as many as the Loaded miles. This has given us more opportunity.

 

[louixo]

I don`t understand how people think flat rate for all miles is better. All you have to do is divide your rate by the miles, and you`ll see what your "flat rate" is for that run. The only difference I can see is that maybe your carrier is getting you more profitable loads , which really amounts to "volume trucking", thus increasing your bottom line. Example: Let`s say the profitable cost of moving freight for a carrier is $2.00 per mile. The carrier has a profit line it would like to stay above to make money. So, the carrier sets a figure to pass on to the driver for a particular run. Let`s say the carrier can make the money they want if they can get the load hauled for $1.00. The o&o also can make an acceptable profit at $1.00 a mile. Bingo, both are in business, and the load is taken care of. Now, let`s say there is no truck available, for whatever reason, at $1.00 a mile. The carrier then farms the load out for bid, and takes the best haul rate it can find for that load. The carriers profit will then be less than the ideal haul rate of $1.00 a mile to the hauler.
Now let`s say that the carriers business plan calls for a profit if it can get freight hauled by the driver for $.75 per mile. So, the carrier goes to a flat rate volume business plan and tells it`s o%o`s we`ll pay $.60 to the truck for ALL miles. You the o%o say ok to the $.60 and don`t worry about deadhead. There is no difference between all miles and figuring out where your profit margin is for each run. Its all in your head for the arithmetic, but if you`re getting more volume and increasing your bottom line because of flat rate volume trucking, then it does make a difference, but it simply means the carrier is averaging to make money, to a figure their business plan allows. They just become leaner and meaner, and so do you, which is competition 101. Don`t forget, it costs x dollars to move freight in a free market economy period!. The rest is competition. Don`t get lost in the math.