Too many deadhead miles are
when a truck travels an excessive distance with an empty trailer, which is unprofitable for the carrier and can be a sign of poor logistics, leading to wasted fuel, increased equipment wear and tear, and a decrease in overall profit. While some deadheading is unavoidable, small carriers should aim to keep it below 15% of total miles, with ideal levels under 10%. To reduce it, optimize routes, use load boards strategically, build relationships with reliable shippers and brokers to secure backhauls, and prioritize loads with a higher revenue per total mile.
Why Too Many Deadhead Miles Are a Problem
- Reduced Profitability Driving without a load burns fuel and incurs costs for equipment and maintenance but generates no revenue, directly cutting into profit margins.
- Increased Costs:You pay for fuel, vehicle depreciation, and maintenance on every mile, including the empty ones.
- Lost Time:Every mile driven without a load is time that could have been spent on a revenue-generating trip.
- Equipment Wear and Tear:Empty miles add to the total mileage on the truck, increasing maintenance needs and decreasing its lifespan and resale value.
- Safety Risks:An empty trailer is harder to control, especially in adverse weather conditions, increasing safety concerns for the driver and equipment.
- Percentage of Total Miles:While there's no single universal number, aiming for under 15% of total miles is a good target for most carriers, with the ideal being under 10%.
- Revenue Per Total Mile:Instead of just looking at pay per loaded mile, analyze your total costs, including deadhead miles, to see the true revenue per total mile.
- Strategic Load Board Use:Use load boards to find loads and plan routes that minimize empty miles between deliveries.
- Build Relationships Develop relationships with reliable shippers and brokers to secure consistent loads and backhauls, which are return loads.
- Optimize Routes:Plan routes that maximize loaded miles and minimize empty travel time.
- Consider Short Hauls:Use short trips between primary loads to fill gaps and turn potentially deadhead miles into revenue-generating segments.
- Set a Deadhead Limit:Establish a maximum deadhead distance you're willing to drive between loads and stick to it.