How Much Deadhead
- Thread starter Newtothis
- Start date
(For expediter wannabees, deadhead means driving with no freight on board at your own expense.)
There are four kinds of deadhead:
1. Deadheading to a pickup that has already been dispatched.
2. Deadheading to a "better" area to wait for load offers.
3. Deadheading in and around the area you are currently in.
4. Deadheading for personal reasons.
1. Deadheading to a pickup that has already been dispatched: Deadheading to a pickup may not be totally at your own expense. Your carrier may pay a token amount to offset the cost. For flat-rate trucks, the entire cost of the deadhead may be paid. While such trucks may have no freight on board while deadheading to wherever it is that the carrier is sending them, I would consider such miles to be loaded miles since in a flat rate arrangement, where all deadhead is paid, loaded and deadhead revenue per mile is the same.
For percentage-paid trucks where little or no deadhead money is paid to move to a pick up, just add the total miles (deadhead and loaded) together, and add the total revenue together (loaded miles pay, deadhead miles pay if any) and divide your total pay by total miles to get your total pay per mile. Then make your load accept/decline decision.
You can do this when you are dispatched on a load because your pick up location, total miles for the run and total revenue are known.
2. Deadheading to a "better" area to wait for load offers: Here, your intent is to stay in service and make money by finding some freight to haul. There are two big unknowns in play. How well will you do if you stay where you are? And, how will might you do if you move?
I discussed this in an Expedite NOW piece, "Do You Sit or Do You Move? Try This Decision Aid."
3. Deadheading in and around the area you are currently in: These are miles accumulated while you are waiting for freight or waiting to make a pick up or delivery if you happen to be a day or more ahead of those. These are miles to the grocery store, truck stop, movie theater, tourist attraction, ball park, golf course, etc.; miles logged while you are passing time waiting for freight. They add up as do their cost.
If you are out 40 weeks a year and log just 50 in-and-around miles each week, you end up paying your cost per mile to drive 2,000 miles a year. One hundred in-and-around deadhead miles a week for 40 weeks gives you 4,000 miles a year. If dispatch called and said they wanted you to deadhead 2,000 or 4,000 unpaid miles on your next load, you would think them to be nuts. Yet expediters do the equivalent to themselves each year by managing their time poorly and neglecting the costs of in-and-around miles.
In-and-around deadhead miles can be minimized by making your fuel and grocery stops while you are on route and under load. Don't deliver and then drive to a truck stop and grocery store to get fuel and food. Get your fuel and food on the way and avoid unnecessary miles.
4. Deadheading for personal reasons: The big one here is driving home. It may be a planned trip like for getting home for one week or one month after being out three weeks or three months. It may be an unplanned trip home like driving 200 miles because you happen to be close or driving 1,000 miles because of a family emergency or other unscheduled but important event.
Home time is an important issue for all expediters and their preferences vary. Whatever your reasons and preferences are, it is good to know your cost per mile and cost per day so you can make financially-informed choices about trips home. How much does it cost you to get home? How much does it cost you to stay home?
There are four kinds of deadhead:
1. Deadheading to a pickup that has already been dispatched.
2. Deadheading to a "better" area to wait for load offers.
3. Deadheading in and around the area you are currently in.
4. Deadheading for personal reasons.
1. Deadheading to a pickup that has already been dispatched: Deadheading to a pickup may not be totally at your own expense. Your carrier may pay a token amount to offset the cost. For flat-rate trucks, the entire cost of the deadhead may be paid. While such trucks may have no freight on board while deadheading to wherever it is that the carrier is sending them, I would consider such miles to be loaded miles since in a flat rate arrangement, where all deadhead is paid, loaded and deadhead revenue per mile is the same.
For percentage-paid trucks where little or no deadhead money is paid to move to a pick up, just add the total miles (deadhead and loaded) together, and add the total revenue together (loaded miles pay, deadhead miles pay if any) and divide your total pay by total miles to get your total pay per mile. Then make your load accept/decline decision.
You can do this when you are dispatched on a load because your pick up location, total miles for the run and total revenue are known.
2. Deadheading to a "better" area to wait for load offers: Here, your intent is to stay in service and make money by finding some freight to haul. There are two big unknowns in play. How well will you do if you stay where you are? And, how will might you do if you move?
I discussed this in an Expedite NOW piece, "Do You Sit or Do You Move? Try This Decision Aid."
3. Deadheading in and around the area you are currently in: These are miles accumulated while you are waiting for freight or waiting to make a pick up or delivery if you happen to be a day or more ahead of those. These are miles to the grocery store, truck stop, movie theater, tourist attraction, ball park, golf course, etc.; miles logged while you are passing time waiting for freight. They add up as do their cost.
If you are out 40 weeks a year and log just 50 in-and-around miles each week, you end up paying your cost per mile to drive 2,000 miles a year. One hundred in-and-around deadhead miles a week for 40 weeks gives you 4,000 miles a year. If dispatch called and said they wanted you to deadhead 2,000 or 4,000 unpaid miles on your next load, you would think them to be nuts. Yet expediters do the equivalent to themselves each year by managing their time poorly and neglecting the costs of in-and-around miles.
In-and-around deadhead miles can be minimized by making your fuel and grocery stops while you are on route and under load. Don't deliver and then drive to a truck stop and grocery store to get fuel and food. Get your fuel and food on the way and avoid unnecessary miles.
4. Deadheading for personal reasons: The big one here is driving home. It may be a planned trip like for getting home for one week or one month after being out three weeks or three months. It may be an unplanned trip home like driving 200 miles because you happen to be close or driving 1,000 miles because of a family emergency or other unscheduled but important event.
Home time is an important issue for all expediters and their preferences vary. Whatever your reasons and preferences are, it is good to know your cost per mile and cost per day so you can make financially-informed choices about trips home. How much does it cost you to get home? How much does it cost you to stay home?
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