how to calculate deadhead miles
Regular accounting programs don’t compute a company overview report because accounting programs don’t think of miles the way truckers have to. When traveling empty, reduce your trailer’s tire pressure. It’s quite simple: Just subtract paid miles from total miles driven. By liking us, you will be able to follow our blog on Facebook. But what about that new set of wipers that you paid for out of pocket? Why is it important to know your cost-per-mile factor? We’ll 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? So, avoiding deadhead miles seems like a good plan, right? Little things add up. If you have other strategies to reduce deadhead miles, please share them with us in the comments below. England pays independent contractors $.80 per deadhead mile. Some truckers may assume they’re no longer on duty when they’re traveling deadhead miles. But sometimes it’s unavoidable when there are no loads nearby. Deadheading is running an empty trailer as you drive to and from the shipping and unloading points. And before accepting any load, check if there are other closer loads. Some trucking companies will pay for deadhead mileage after the first 100 miles, although it isn’t required. While company drivers typically get paid for deadhead mileage, owner-operators aren’t always as lucky and the cost could come out of pocket. Because of that, there’s a DOT requirement to keep your logs in order and indicate when you are running an empty trailer. What’s funny is that those numbers are just so simple to track. It burns gas, wears out your tires, and pulls down your potential profit. You can even calculate the cost per mile without these helpful aids because it is quite simple but very important! Using technology makes tracking expenses a lot simpler and producing a report showing revenue and expenses is now just a few seconds away at any time, not just when you’re at home in front of ledger books. I could assume they’re going home, or maybe they’re on their way to the next load. 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. We have to account for every mile – loaded or not, heading home or to a pickup, bobtail, or with a trailer. In this way, it can absorb bumps better and keep the trailer from bouncing around and shaking. Others have a file or a shoebox. Posted by That Mother Trucker | May 5, 2019 | Hotshot Trucker Tips, Safety | 0 |. 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. Generally, most company drivers don’t need to be concerned about deadhead miles. Your email address will not be published. At this rate, it won’t take long for deadhead miles to cut into profits, making it difficult to pay. Empty miles make up a significant share of all miles driven in the trucking sector. Deadhead miles are those unprofitable miles you may have to drive with an empty truck between loads. This ensures that you can allow your truck to run empty while still achieving your desired margin of profit. Deadhead miles are a fact of trucking life. While running fully loaded is the ideal, it’s not always possible. Owner/operators and fleet managers can avoid deadhead miles by using TMS to help with load planning. 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. When computing this minimum rate, take into consideration the cost of fuel plus the prorated wear and tear cost of tires. To calculate Total Miles on Active Vehicles During the Period, for each vehicle in the fleet subtract the prior year's ending odometer reading from this year's ending odometer reading. 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. What your expenses per mile are. Independent truckers must worry about the effect deadheading will have on their IFTA reporting and payments, not to mention the financial impact. However, as a responsible business manager you should compare your cost-per-mile factor from month to month to determine :how your business progresses. Aside from money wasted, there’s another more serious problem with deadheading — safety. No trucker or fleet manager likes deadhead miles. I decided to accept that unless you’ve got the perfect lane, you’re going to drive empty. 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. Is that the way you think about deadhead miles? I needed data to help me, not a random number I’d picked out of the blue. You can realize savings of thousand dollars a year just by driving your truck at 60 mph. We’ll compute your IFTA for you – all for free. The numbers you need for the IFTA are also the numbers you need for a basic company overview report. What do you want to know about your company this year? Deadhead miles are those unprofitable miles you may have to drive with an empty truck between loads. There are multiple factors to consider when computing those numbers. It will tell you what your revenue per mile is. Since deadhead miles are unavoidable, the best you can do is offset the cost by setting a minimum load rate. Another strategy is to add fuel surcharges as part of the quoted rates. When you use this high quality oil mixture, change the oil only every 25,000 to 30,000 miles. But it got me thinking about deadhead miles and the IFTA. (You only need full inflation on a full load.) I said we need a company overview report that puts the key numbers into the trucker’s hands. Maybe because it’s Friday. 1 synthetic motor oil from Mobil mixed with Tufoil, using a 1 to 10 mix ratio) and replacing the oil filters with micro glass filters. That means you won’t accept any load that falls below this number. However, owner/operators don’t have that luxury. For example, C.R. Do you want to wait until you get home to find out? An empty rig is harder to control in strong wind or inclement weather. It’s quite simple: Just subtract paid miles from total miles driven. Engine manufacturers such as Caterpillar say slowing down will (1) reduce fuel consumption, (2) reduce tire wear by as much as one fifth, and (3) extends the truck engine’s lifecycle, thus delaying the need for an engine overhaul. Furthermore, deadheading can be dangerous. Being a little philosophical about it makes the time and miles less stressful. Now that you have identified the operating cost, you start to think about ways to lower your cost and increase your profit margin. Check the load boards to see if there’s even a partial load along your route. Slowing down to 60 mph will extend the lifecycle of your engine 14 months, from 4 years 4 months to 5 years 6 months. Your email address will not be published. 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. that all vehicles within that fleet (RVI ID) traveled within the report period. So how do you cope with this problem? Save my name, email, and website in this browser for the next time I comment. And what’s more, it’s not making us money. Like deadhead miles, we tend to forget them as unimportant – until it’s time to pay the IFTA. Please enter the origin and destination addresses and click the Calculate Mileage button. Or the extra winter fuel additives? 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. But with some planning, you can drastically minimize deadhead miles. The computer does it for you. It’s available wherever you have wifi on your phone or on your tablet. 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. Because it allows you to quickly determine the profitability of a load. Big-ticket items like new tires or an oil change – they’ll think about those. If you’re new to the trucking industry, you’ll need to learn about deadhead miles. Specifically, set the tire pressure to only 10 or 15 psi. You know immediately if you’re in a position of accepting a lower-paid load just to get someplace where you can get a better load or get home. Accounting programs think dollars, not miles. For RVI IDs with more than one vehicle, add these … But that’s pretty much a thing of the past, which I think is a good thing. I decided I wouldn’t go more than 50 miles deadhead if I could help it. by TruckingOffice | ELD, IFTA, Trucking Management | 0 comments. Let us prove it to you. This example clearly demonstrates the importance of the cost-per-mile calculation for the success of your trucking operation. Truck Dispatch Seminar 2020 Download (PDF), Truck Dispatch Seminar 2020 on CD - (PDF). This is computed by taking into account the trailer’s fuel cost, average miles per gallon, and total deadhead miles. On a trip across town this morning, I saw 3 bobtails and 3 empty flatbeds. I hear a lot of truckers say that’s not so hard to figure out… until they try. So, avoiding deadhead miles seems like a good plan, right? Independent truckers must worry about the effect deadheading will have on their IFTA reporting and payments, not to mention the financial impact. Why Your Trucking Reports Matter, The Top 10 Expenses Every Trucker Should Be Tracking, How to Run a Successful Trucking Company—Part 9: Build a Website, Trucking Dispatch Software Makes Life on the Road Easy, 3 Ways Trucking Software Will Improve Your Cash Flow. How to Limit Trucking Deadhead. 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