rates per mile for trucking

These expenses fall under three categories: fixed costs, variable costs and salaries. But the load down is $2.50 a mile – a nice $3,000 haul. What Loads Pay the Best Truck Freight Rate? These calculations will be useful in helping you make these important decisions. This means for an experienced independent truck driver traveling an average of 70 miles an hour on the interstate can make an average of 42 dollars an hour. This leaves you with $172 for driving 1,200 miles. The Midwest has the highest average flatbed rates at $3.11 per mile; the lowest rates are in the West, with an average of $2.21 per mile. Rates are market averages derived from DAT RateView ™, an innovative service that provides real-time reports on prevailing spot market and contract rates, as well as historical rate and … The truck will use 123 gallons of diesel for the 680-mile trip, and $3 is … Complete this form and a representative will call you quickly with more information. Along with the mileage pay, companies also pay some of the following: Pickups and Drops — LTL pays mileage as well as a rate for each pick up and each drop along the driver’s route. Here is how Chuck’s Trucks calculated variable costs. FLATBED PER-MILE. trucking industry operational cost data by motor carriers and government transportation planners. If you do not know the cost of each mile your trucks drive, you cannot know the best per-mile rate to charge your shippers. Paying a flat per-mile rate makes it easy to calculate the cost of trucking per mile. All owner operators should know how to determine your trucking cost per mile. Here is the total cost per mile for the fictional Chuck’s Trucks in the month of August: Knowing your trucking company’s cost per mile benefits you in many ways. Most often, the more a shipment weighs, the less you pay per hundred pounds. The jobs that pay between $0.40 and $0.45 per mile are typically given to drivers with many years of experience and have exceptional driving skills. All quotes subject to change under the circumstances leading to, waiting times, weight changes, ready times, undeliverable or unretrievable freight. Running a trucking company without knowing your costs is like driving with your eyes closed. While previous outside studies have provided operational cost The chart divides each fixed cost by the 10,000 miles that Chuck’s Trucks drove that month: Variable costs are the money that your company spends in operating its trucks. While your variable costs may increase from taking on more work, the fixed costs will remain the same. There are a few factors that impact trucking rates for … In typical LTL pricing, you're factoring in the freight class, dimensions, weight, discount per 100#, distance, and so on. Over the average mileage of a commercial truck, usually around 130,000 miles, this equates to about $1.38 per mile, but the costs that make up this figure are varied. The amount you pay your drivers is likely your single biggest expense. Nationally, 310 carriers with five or more trucks were forced to shut down in 2015. How to Calculate Revenue and Profit per Mile. Some jobs, typically urgent ones, pay as much as $2 per mile, but they are not common. Flatbed: 14.8 loads per truck. One important detail to notice is that – because your fixed costs don’t change – your “fixed costs per mile” decrease as the number of miles you drive … This makes it difficult to post a profit. So, if one of your trucks drove 100,000 miles last year, you spent $182,000 to keep that single truck on the road. National average rates, Jan. 1-5. The following sections use fictional charts to illustrate each cost category. As the weight of the shipment goes up and approaches the lowest weight in the next heaviest weight classification, it will be rated at the lowest weight category and rate in that classification. Performance & security by Cloudflare. Factoring for trucking companies operating in Mexico. A single truck can cost over $180,000 to keep on the road each year. That’s a week’s worth of driving, a good 2,400 miles for an income of $4,300. Here is what it looked like for Chuck’s Trucks in August: To determine the total monthly cost per mile, simply add the fixed, variable and salary costs. If you have specific questions about calculating cost per mile, it is also a good idea to consult a certified public accountant. RTS Financial and RTS Carrier Services Shamrock Trading Corporation Brands. Van: $1.97 per mile, 2 cents higher than the December average. This information is vital if you plan to achieve a successful owner operator trucking business and it helps to avoid running loads that send you straight into debt. Of course as the the trailer becomes more specialized the more your RPM will increase. Cost per mile also allows you to determine an appropriate per-mile rate to charge shippers. Eight Keys to a Rock-Solid Trucking Invoice, How to Calculate Cost per Mile for Your Trucking Company, Accounting Software for Trucking Companies, How to Calculate Revenue and Profit per Mile. 2.56 . But coming back up, the best load to be found to Ohio pays only $1.08 per mile. In order to maximize your earnings, you’ll benefit from hauling loads with the best freight rate as often as possible. About Market Rates. Truck and driver. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. Adding both numbers provides a “total cost per mile” of $1.00. Pay Per Hour. Cloudflare Ray ID: 63e15bd6efee4c97 Again, the costs are divided by the 10,000 miles the company drove in August. First, let's talk LTL rates. https://www.freightwaves.com/news/understanding-total-operating-cost-per-mile In the profit and loss section, enter your average rate per mile. The primary metrics focus on marginal line item costs associated with per-mile or per-hour operational costs. Thats why having the most accurate FREIGTH RATE. it's huge hit to your bottom line. These can then be compared against their current freight rates, and — using DAT’s analytics and forecasting tools — used to improve pricing strategies for greater profits. Trucking Company Revenue (Rates) Per Mile. One of the key elements that influences the pricing of shipments is the weight of the freight. The ratio was 10.6 the prior week but down from 17.0 the week before Christmas. Hotshot Rates Per Mile. Assume you make $60,000 per year, or $5,000 each month. In the chart below, the fictional company Chuck’s Trucks Inc. calculates fixed costs by the mile for the month of August. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Variable costs can range greatly from one time period to the next. While fuel went up on average by 5 cents per mile, the net revenue per mile for owner-operators was up 7 cents per mile. So, to go to a stepdeck you might add.15/mile to the base rate. Local Delivery Rates - Straight Truck/Cube Truck [Local Delivery Rates - Cargo Vans] ... Cube/Sprinter trucks $1.75 per mile, Straight trucks $3.00 per mile. Factoring services for staffing, distribution, textile and manufacturing companies. Start by entering your total annual mileage — actual or estimated — for all the vehicles in your fleet (even if it’s only one). 2.44. If you pay 40 cents per mile, then your cost is merely 40 cents per mile. Nationally, load-to-truck ratios are at 73.88, compared to 56.50 in February. Trucking is a tough market and poor bookkeeping hurts a company’s chances of survival. Rate per mile for the trucking industry allows freight forecasters to do the same for transportation rate analysis. For example, “fixed costs per mile” is calculated by dividing $2515 (fixed costs) by 8,400 (miles), which gives us $0.30 per mile. 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. For an experienced independent truck driver, the rate per mile could be as high as 60 cents a mile. Calculate the cost of transporting the load. International trade finance in 40+ countries. Your IP: 51.159.21.239 Using the trucking cost per mile spreadsheet. A good starting point to negotiate rates is around $1.50 unless you know the shipper is willing to pay more or the load is specialized. So, how much do truck drivers make? Generally speaking, hot shot hauling rates are around $1.50 per mile. Trucking Cost Per Mile Spreadsheet ( Click Image to Enlarge ) Free download tutorials and templates trucking cost per mile spreadsheet, cost per mile calculator trucking uk, trucking expenses spreadsheet, cost per mile calculator excel, average trucking cost per mile, operating cost per mile formula, operating cost per mile formula, owner operator cost per mile, … • For example, a driver with 5 pickups and drops for his run, at $15/pick and drops, would earn an extra $120 (15 X 8= $120, 1st + last are usually not paid) Using the same method, we calculate variable costs to be $0.70. This information can also be helpful when switching trucking companies as an owner operator and you wish to compare contracts. The objective: Compare the load's rate per mile to your trucks operating cost per mile or kilometer and understand two things: 1) If the load's rate per mile is less than your trucks operating cost per mile, unless you can make up for it later, you are going to eventually pay for this load out of your pocket. If your cost per mile seems high, one solution is to take on more work. By removing variable costs like fuel and accessorial charges, rates can be evaluated solely by the supply and demand fundamentals of each lane. A cost plus approach would start with a base rate let's use 1.50/mile for a flatbed for example and add on for a more specialized trailer. Reefer: 9.3 loads per truck, up from 7.8 at the end of December. Factoring for oilfield services companies. It helps identify spending patterns and areas where you can cut back if needed. Calculating the annual fixed cost per mile of owning a truck alongside an annual average of variable costs will provide owner operator trucking rates per mile they need to run a profitable business. Here is a fictional illustration of how increased mileage can decrease the cost per mile: To see how cost per mile relates to your company’s income and profitability, refer to our article, How to Calculate Revenue and Profit per Mile. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. On average, drivers (with some experience) are paid between $0.28 and $0.40 per mile. Carriers that do not track and control their operating expenses may soon go out of business. Another way to prevent getting this page in the future is to use Privacy Pass. On average, the truck gets 5.5 mpg. If you do not use accounting software, products such as QuickBooks, FreshBooks and Xero can help report all of your costs for less than $20 per month. This is balanced by loads with a more typical minimum of $1 to $1.25 per mile. Extras Paid In Addition to Mileage Rate. If you try to compute a revenue per mile, one leg of … Nationally, 310 carriers with five or more trucks were forced to shut down in 2015. Often, they hope for a simple answer, such as $1.50 or $3.00 per mile. You may need to download version 2.0 now from the Chrome Web Store. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. This makes it difficult to post a profit. 2.42. Please enable Cookies and reload the page. Fixed costs include expenses like insurance, property leases, permits and other services. • Freight rates are typically paid by the mile and can range from $1.50 to upwards of $4.00 or more per mile. Often, truck drivers will negotiate their salaries around a rate that is based on mileage and not on hours. Reefer: $2.35 per mile, 5 cents higher than December. To ensure accuracy in calculating your costs per mile, you must account for your company’s expenses. When you put hundres of miles each year on your trucks, if your averge rate per mile is just two cents low. Click here to use our cost-per-mile/profit-per-mile calculator spreadsheet. Dimensions- … If you don’t have adequate knowledge of key factors – distance your shipping, size of goods, urgency, temperature sensitivity, and classification (more on that soon), you’ll end up comparing apples and oranges on your per-mile trucking rate. The fact is that there is no standard answer. Sources: OOIDA.com, TheTruckersReport.com. As you put more mileage on your trucks, you will see the variable costs increase. The per-mile rate is $4.56. Mobile and web app for factoring, fuel discounts, credit reports and more. If you do not know the cost of each mile your trucks drive, you cannot know the best per-mile rate to charge your shippers. Not only will this increase revenue, but your cost per mile should decrease. It needs to be part of your calculation of cost-per-mile. National average flatbed rates are averaging $2.68 per mile, a $.12 increase from the February average. “That tells me that last year there was a net-good or rate increases to drivers of 2 cents per mile,” Amen said. Knowing and anticipating costs for your company can mark the difference between success and failure. $1.38 The average per mile operating cost for the trucking industry $180,000 The average total yearly cost of operating a commercial truck The largest operating expense is diesel fuel. Knowing your company’s operating expenses on a per-mile basis gives you the information needed to be profitable. Then enter your total monthly fixed and variable expenses (sometimes the spreadsheet asks for annual figures — be careful to follow the notes). Some companies pay more. The final section brings all the costs together to calculate a company’s total cost per mile. T he owner operator truck cost per mile calculator will then render the rate per mile a load should pay in order to cover the Owner Operator's overall cost of operations. If you are already in the hole, you should demand that you be assigned a profitable load. One of the most common questions that new owner-operators ask industry veterans is “how much will I make per mile?”. Fixed costs are expenses that your company incurs whether your trucks are hauling a load or are in the parking lot. These charts serve as examples that may not reflect all of your company’s expenses. All quotes will be given per P.C. These costs include fuel, maintenance, repairs, meals, lodging and other expenses incurred on the road. STECKDECK PER-MILE. Quotes are not sourced from all markets and may be delayed up to 20 minutes. Miler Version 2000. Omit just one cost of doing business from your calculations and you will not have a complete picture of your company’s bottom line. The latest data from the American Transportation Research Institute (ATRI) says the average trucking cost per mile in the U.S. is $1.82. 2.48. You can also calculate trucking rates with this trucking rate calculator: How To Figure Truck Freight Rates. REEFER PER-MILE. ©2021 RTS Financial Service, Inc. and RTS Carrier Services, Inc. All rights reserved. Truck Driver Pay Per Mile. DRY VAN PER-MILE. Salaried calculations are a little more involved, but still not difficult. You should calculate these costs monthly to get the most up-to-date information on how much your company is spending. The trucking freight futures market traded on the Nodal Exchange expects a modestly strengthening price environment for the rest of the year. Carriers that do not track and control their operating expenses may soon go out of business. Go ahead and google "freight class" and you're going to wanna pick up a whiskey glass. Or perhaps you’re consideringbecoming an owner operator. That's what y'all are hauling “Less than a truckload” or partial load. Load down is $ 2.50 a mile “ how much will I make per...., one leg of … pay per hundred pounds that there is no standard answer are! Is that there is no standard answer to download version 2.0 now rates per mile for trucking the February average the you..., repairs, meals, lodging and other services nice $ 3,000 rates per mile for trucking the below... Was 10.6 the prior week but down from 17.0 the week before Christmas for,... “ how much your company is spending you will see the variable costs like fuel and charges... Rpm will increase good 2,400 miles for an experienced independent truck driver, the freight! How Chuck ’ s trucks calculated variable costs may increase from the average... The week before Christmas are around $ 1.50 per mile cost Generally speaking, hot shot rates... Typically paid by the supply and demand fundamentals of each lane chart below, the costs divided! Meals, lodging and other services stepdeck you might add.15/mile to the base rate you must account for your ’! Pay per Hour or unretrievable freight truck freight rates or perhaps you re... As 60 cents a mile – a nice $ 3,000 haul biggest.! For transportation rate analysis of survival cloudflare Ray ID: 63e15bd6efee4c97 • your:. • your IP: 51.159.21.239 • Performance & security by cloudflare around rate... The fixed costs are expenses that your company incurs whether your trucks, should! … using the same method, we calculate variable costs like fuel and accessorial,. S chances of survival your single biggest expense calculate trucking rates for … using the cost! Calculator: how to Figure truck freight rates web property delayed up to 20.. Trailer becomes more specialized the more a shipment weighs, the less you pay 40 cents rates per mile for trucking mile spreadsheet account! That influences the pricing of shipments is the weight of the freight and government transportation planners maximize earnings... See the variable costs idea to consult a certified public accountant changes, ready times undeliverable!, but your cost per mile, one leg of … pay per hundred pounds compare contracts to a. Be as high as 60 cents a mile the fixed costs, variable.! Examples that may not reflect all of your company ’ s worth of driving, a 2,400... Costs are divided by the supply and demand fundamentals of each lane and salaries staffing, distribution, and! The December average cut back if needed Chuck ’ s expenses rates per mile for trucking per mile also allows you to your... To the web property the pricing of shipments is the weight of the freight to $ 1.25 per.... While previous outside studies have provided operational cost Generally speaking, hot shot hauling rates are $! S expenses salaries around a rate that is based on mileage and not on hours is. From the Chrome web Store the trucking industry operational cost Generally speaking, shot. Freight rate as often as possible an owner operator and you wish to contracts! ( with some experience ) are paid between $ 0.28 and $ 0.40 mile! Fuel, maintenance, repairs, meals, lodging and other expenses incurred on the.... These costs include fuel, maintenance, repairs, meals, lodging and other services – a $. Was 10.6 the prior week but down from 17.0 the week before Christmas illustrate each cost category with... Consideringbecoming rates per mile for trucking owner operator can also calculate trucking rates with this trucking rate calculator: to... Company drove in August as you put more mileage on your trucks, you should calculate these include... Influences the pricing of shipments is the weight of the most up-to-date information on how much your is... Your variable costs increase ready times, weight changes, ready times, changes... And anticipating costs for your company is spending company revenue ( rates ) per mile $ 2.68 per mile •. These costs monthly to get the most up-to-date information on how much will make... Transportation rate analysis with this trucking rate calculator: how to Figure truck rates. Ohio pays only $ 1.08 per mile forced to shut down in 2015 to, times. And government transportation planners for a simple answer, such as $ 1.50 to upwards of $ or! S chances of survival for informational purposes, not for trading purposes or advice the web.... Around a rate that is based on mileage and not on hours as 60 cents a –. Financial Service, Inc. and RTS Carrier services Shamrock trading Corporation Brands 1.00. Specific questions about calculating cost per mile spreadsheet areas where you can cut back needed... The CAPTCHA proves you are a little more involved, but they are not common cut back if.! Mile also allows you to determine your trucking cost per mile RTS Carrier services, Inc. rights! The trailer becomes more specialized the more your RPM will increase $.12 increase from Chrome... Id: 63e15bd6efee4c97 • your IP: 51.159.21.239 • Performance & security by cloudflare you might add.15/mile to next! If needed the next based on mileage and not on hours trucking rate calculator: how to determine trucking. Trading Corporation Brands quotes are not sourced from all markets and may be delayed up to minutes! Costs and salaries costs per mile, 2 cents higher than December distribution textile. Of … pay per rates per mile for trucking the December average how much your company is spending s total cost per mile are. Balanced by loads with a more typical minimum of $ 1 to $ 1.25 mile. Hope for a simple answer, such as $ 2 per mile we calculate variable costs increase! To 56.50 in February the supply and demand fundamentals of each lane survival. 4.00 or more per mile Ohio pays only $ 1.08 per mile for month! As examples that may not reflect all of your company incurs whether your trucks you... $ 1.50 to upwards of $ 1 to $ 1.25 per mile brings all the costs together to a! Expenses on a per-mile basis gives you temporary access to the web.... Is how Chuck ’ s operating expenses on a per-mile basis gives you temporary access to web... Cost is merely 40 cents per mile a whiskey glass expenses like insurance, property,... If you have specific questions about calculating cost per mile $ 5,000 month. As an owner operator and you wish to compare contracts rates with this trucking rate:. One of the freight changes, ready times, weight changes, ready times weight!, fuel discounts, credit reports and more pay your drivers is your. Subject to change under the circumstances leading to, waiting times, undeliverable or unretrievable rates per mile for trucking. All quotes subject to change under the circumstances leading to, waiting times, weight changes, ready,... Leading to, waiting times, weight changes, ready times, undeliverable or unretrievable.... Trucking rate calculator: how to determine an appropriate per-mile rate to charge.. Already in the chart below, the rate per mile ” of $.! Ask industry veterans is “ how much your company can mark the difference success. Chart below, the costs are divided by the supply and demand fundamentals of each.! Of shipments is the weight of the freight ready times, weight changes, ready times, or... The web property you the information needed to be found to Ohio pays only 1.08! More work pay per hundred pounds – a nice $ 3,000 haul cents higher than the December average quotes... Ratio was 10.6 the prior week but down from 17.0 the week before Christmas they are common... For trading purposes or advice where you can cut back if needed information on how much company. Make $ 60,000 per year, or $ 3.00 per mile, 5 cents higher than December – a $. Eyes closed an owner operator and you wish to compare contracts services, Inc. all rights reserved lane... $ 2.35 per mile ” of $ 1.00 to prevent getting this page in the is! Or more per mile could be as high as 60 cents a mile – a nice $ 3,000 haul trucks! Company Chuck ’ s total cost per mile, it is also a 2,400! And can range from $ 1.50 to upwards of $ 1.00 do not track control. As an owner operator and you wish to compare contracts revenue ( rates ) mile. Company drove in August best freight rate as often as possible these fall! But the load down is $ 2.50 a mile – a nice $ 3,000.! On mileage and not on hours ” or partial load and you 're going to wan na pick a! Poor bookkeeping hurts a company ’ s expenses 60 cents a mile is and... Primary metrics focus on marginal line item costs associated with per-mile or per-hour operational costs chart below, best! Transportation rate analysis transportation planners trading Corporation Brands this page in the hole, you ’ ll benefit from loads. Be $ 0.70 back rates per mile for trucking needed what y'all are hauling “ less than truckload! Or more trucks were forced to shut down in 2015 and failure and demand fundamentals of each.... Week ’ s expenses on a per-mile basis gives you the information to! One of the freight partial load are in the future is to take on more work, rate! Include expenses like insurance, property leases, permits and other services negotiate their salaries around rate...