The deadheading is wrong, per definition, it does not generate revenue but costs, therefore should be avoided and minimized at best. We all, men especially, want to be macho types and things like “Say no to cheap freight” we do want to applaud and never become suckers making them blood thirsty brokers/shippers satiated, laughing at us while we take their cheap freight.
Essentially, deadheading is better from cheap freight if it means
1. You not wasting your time on cheap load, better to drive to an area where you get satisfactory money. So, for example, if in the same day I can get 300-400 miles to a better paying place and I will satisfy my daily revenue quota. So, it is time vs money.
2. You are not to jeopardize existing obligations and commitments. I mean contracts and already booked loads.
I think that I am a man like many and I value my home time a lot. The less time I spend in the truck, and truck stops, the happier I feel. It is essential for me to be home every weekend, do things around the house, do some biking/hiking and go to picnics and all the fun and happy staff. Let’s look at this model (I thought about lately).
You take a load out of Chicago area --- for 900 – 1000 go to Columbus, OH/Des Moines, IA/St Louis, MO/ Detroit, MI/ ---- 300 – 400 miles a run then deliver it in the early am, after the delivery, you just blindly haul your arse to Chicago Land and take another one in the afternoon, and repeat the process. So pretty much half of the miles are deadhead, your rate per mile becomes nothing to brag about, but you do meet your quota. Meaning you can generate 4000- 6000 a week on 3000 – 4000 miles. Horrible $ per mile average, but your weekly gross revenue pretty good and you start on Monday am and finish empty on Friday night. That should cost about 1000 – 1600 for fuel and $300 in tolls so you are getting 3000 – 4000$ after that.
The principle question is this:
How significant is the deadheading impact on maintenance, in other words, wear and tear cost, when you run like that? Is deadheading impact negligible and should be marginal if you focus solely on a daily revenue?
If so, well then, all that rate per mile paradigm in terms of all miles (loaded and empty) is to be neglected in favor of generating the gross.
I am just exploring, theorizing, but maybe this would be a simplistic model that could work.
The art and theory of deadheading. Thoughts and Opinions.
Discussion in 'Ask An Owner Operator' started by TallJoe, Aug 27, 2017.
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wearing your truck out for very little money
JL of Indiana and LoneCowboy Thank this. -
Deadhead miles are irrelevant in my opinion and experience.
No need for a master's degree in "deadhead theory."
Although, speaking of deadhead,
Out on the road today I saw a Deadhead sticker on a Cadillac.
A little voice inside my head said:
"Don't look back, you can never look back." -
The problem with Chicago freight is that rates are acceptable only going outbound.In order to get back ASAP you would need to take something back to Chicago for 500 - 600 from OH, MI, MO, IN (even less) and it does not guarantee that you'll have a swift unloading so you have enough time to find a decent reload. I tried to go to OH, then PA then to ME and then I got stuck and offered .80 c per mile on over 1000 miles run back home. Add tolls and it is not good at all. I tried Chicago - Dallas, TX - FL triangle - that's too much of a running to manage it all in 5 days and getting out of FL kills your morale. There must be some compromise.
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It all depends on your personal situation I guess. I get just as much satisfaction out of being on the road as I do with working around the house. That being said, i get out of the truck and do things out on the road. I still take time to enjoy life and don't mind being out for a few weeks before taking a week or two off at the house.
To the point on deadheading, everyone factors their costs differently, and weighs their importance differently. This holds true for any business in any industry, and is why some companies fail while others flourish.
I personally don't figure my pay on an all miles basis. I don't get paid to run empty, so I don't count it when figuring up my profit. I do count it as a loss, but I don't figure it in per mile. It costs me roughly $0.35/mile to run empty by my calculations (everyone's costs are different). Then it costs me approximately $130/day for my truck to not move. If I'm looking at deadheading versus picking up a cheap load I take all of that into account. All things being equal when the math is done, including net profit, time/day that I'm empty, and area that im empty in, i will gladly deadhead to pick up better paying freight in order to do my part to keep the rates up. I know someone will come along and haul the cheaper stuff, but if we all said no, it would come up. I can't complain about rates if I'm contributing to the problem.
Essentially what I do is, using your hypothetical, the 3-400 mile d/h would cost me $100-140 to go back, half a day lost @ $65, and roughly $30 in tolls. Added all up, that's a loss of $200-$250, meaning, to me, that load that paid $900-$1000 for the first trip, now only pays me $650-800 on every subsequent load. That's still better than $2/mile if it's only 300 miles, so depending on the freight situation where I'm delivering to, I might be willing to do that. If it's 400 miles, I wouldn't be able to make the loop in a single day, and it's less than $2/mile so I probably wouldn't do that.TallJoe Thanks this. -
Common, we could make it a science at a business school. LOL -
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Mpg wise 8 8.5 empty or 5.5 6 loaded, sometimes it just makes more sense to eat the fuel money than to haul cheap freight and take the chance of loosing time just to pay for fuel. Eat the fuel money and get the satisfaction of telling em where to stick that cheap freight,
brokers will low ball you and know they have the upper hand if they see your truck posted wanting to go to certain market. -
To me other then the difference in fuel mileage, it costs the exact same to run empty or with a load. There are no backhauls, we drive forward all the time right? lol.
Joe if you ran to Columbus out of Chicago, then triangle back through Indianapolis. I don't care to get into exact rates but you would actually make more coming back with two loads vs the one going out. The time would increase a bit but could still get all 3 loads done in about 1 and 2/3 days. Then reload the 4th load before shutting down to end that 2nd day.
I wouldn't run empty back to answer your question. No way. Your going to rack up unpaid miles so much faster dead heading back. It's hard to put a price on the equipment wear but it's high. -
Also think of it like this, say you had an owner op leased onto you that you paid 1.50/mi all miles. Would it make sense for you to deadhead him or her back to Chicago to get another load? No it would not, at the very very best you would still lose money. So, it's also not a good idea to do the same in your own asset.
Lastly, I have mixed emotions on "cheap backhaul freight". To me that is a lot different then cheap head haul freight so to speak. You have to get your money getting into the area obviously. Then the return load doesn't seem so cheap because it's the average that matters. It's not the broker scamming you, it's the market conditions dictating that low rate per mile. Your not screwing the broker getting into the area where you got above normal rates, it's just the market dictates that on that lane as well.
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