What CPM can I expect from brokered loads?

Discussion in 'Expediter and Hot Shot Trucking Forum' started by KinkadeIN, Jan 9, 2014.

  1. KinkadeIN

    KinkadeIN Bobtail Member

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    Dec 26, 2013
    Griffith, IN
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    I have been looking at load boards and the numbers are a bit confusing to me. I really can't financially survive below $X.XX cpm.

    I've now been talked into a 40' flat deck pulled by an F450. Preliminary numbers say I can carry about 15k. (34k GCWR)

    I know different loads / destinations / origination / etc. will have different CPM's but there has to be an average of what you all have been getting. Are you getting $1.30-ish? $2.00-ish?
     
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  3. 6 Speed

    6 Speed Heavy Load Member

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    Jan 2, 2014
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    Every brokered load you haul will be after a contract has been signed.
    Never seen one that said anything about CPM.
    Just flat rate from A to B.
     
  4. KinkadeIN

    KinkadeIN Bobtail Member

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    That flat rate can be transposed to CPM. For instance... if you take a load from A to B with a loaded distance of 500 miles and your flat rate pay is $750.00 that would equate to $1.50 CPM. If your flat-rate pays is $900 than your CPM is $1.80. Again, I know every load is different but there has to be a reasonable average to go by.
     
  5. Ridgeline

    Ridgeline Road Train Member

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    CPM >>>>> Cost Per Mile.
     
  6. KinkadeIN

    KinkadeIN Bobtail Member

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    Griffith, IN
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    Yes, it also means Cents Per Mile. Such as if you were a company driver looking for a job. That job will pay you $.38CPM.
     
  7. Ridgeline

    Ridgeline Road Train Member

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    OK I know what you meant and know what it means but when you say $.38 CPM, that is $.38 cost per mile. If you say 38 CPM, then it means cents per mile. The same goes for $1.50 CPM, that means $1.50 cost per mile.

    The reason I bring this up is when people speak to accountants or business advisor, it is important to use the right words.
     
  8. aktundratugger

    aktundratugger Light Load Member

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    up on the hill, Ak
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    If you know the $ number that you can't operate under, than you have your answer, it's different for everyone. You must calculate your own profit, not use mine, mine is different. 13 years you should know this.
     
  9. KinkadeIN

    KinkadeIN Bobtail Member

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    Dec 26, 2013
    Griffith, IN
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    No, I'm not talking about operating costs. I already have that figured out. What I'm trying to ask is to take an average month... take the number of miles divided by the income. That will tell you the average cents per mile you are earning in an average month. You could even figure it out by the load. Say a load pays $2000 to go from Chicago to New Your. The trip is 1300 miles. That means the load pays $1.54 per mile. Of course that is GROSS pay (less fuel, insurance, wear & tear, per diem, etc.).

    So looking at that load which pays $1.54 per mile, if my operating expense is $1.60 than I would technically lose money on the load. If my operating expense was $.95 per mile I would stand to make $.65 per mile.

    It may not be the way everyone looks at things. I've been a company driver for about 12 years. Never had to deal with what a load pays. It's easier for me to se things on a 'cents per mile' level.
     
  10. Ridgeline

    Ridgeline Road Train Member

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    OK how do you add in the deadhead miles with that?

    You know your base costs but your unladen per mile costs, are they factored into the costs of the load when you negotiate the load rate?

    I did it two different ways, the first was all the deadhead miles I had to drive to pick up the load and the deadhead miles going to somewhere to be dispatched were all added into the cost per mile for that load and when it was negotiated, I added into the price. The second way I did it was I took the deadhead miles from the last drop and added it into the deadhead miles to the pickup, then after the pickup, I used the deadhead to the layover till the next dispatch forward on the next load.
     
  11. KinkadeIN

    KinkadeIN Bobtail Member

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    Griffith, IN
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    I am using my own calculated dead head miles based on a fixed percentage. However, it would be easy to extrapolate that on your end as well. Ultimately, take the number of miles you ran last year and divide it by your income. That will tell you what your annual gross cpm is. That is inclusive of loaded miles, dead head miles, etc. I understand each load will pay a different rate based on weight, class, distance, size, etc. I totally get that. Again, I am just looking for averages.
     
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