Notes from Dr. Borkosky

Learn how your comment data is processed. What do you want to know about your company this year? Keep in mind, if you have operated your truck only for a short time, the cost-per-mile factor may be misleading, because you do not yet have comparable historical data from previous years.

It’s quite simple: Just subtract paid miles from total miles driven. Little things add up.

If you find that there are, weigh the pros and cons (or do a cost-benefit analysis) before deciding to accept the load. England pays independent contractors $.80 per deadhead mile. Big-ticket items like new tires or an oil change – they’ll think about those. No trucker or fleet manager likes deadhead miles. As long as you’re in the hotshot business, deadheading is unavoidable. Save my name, email, and website in this browser for the next time I comment.

Slowing down to 60 mph will extend the lifecycle of your engine 14 months, from 4 years 4 months to 5 years 6 months. When computing this minimum rate, take into consideration the cost of fuel plus the prorated wear and tear cost of tires. Independent truckers must worry about the effect deadheading will have on their IFTA reporting and payments, not to mention the financial impact. Specifically, set the tire pressure to only 10 or 15 psi. Required fields are marked *.

Deadhead miles are those unprofitable miles you may have to drive with an empty truck between loads. The computer does it for you.

However, you can still maximize your profit potential by utilizing these strategies.

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? I figured it was better to get something rather than sit around and hope for a good load to show up within an hour of me, wherever I was. I hear a lot of truckers say that’s not so hard to figure out… until they try.

And before accepting any load, check if there are other closer loads. 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. 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.

You can obtain these numbers from your monthly or quarterly financial statements. As a general rule, never allow your deadhead costs to exceed 10 percent of the freight rate offered, unless you receive compensation for deadheading or circumstances simply will not allow otherwise. IFTA Mileage Calculator Welcome to the IFTA mileage calculator. Top 10 Pickup Trucks For Hot Shot Trucking in 2019, 9 Steps to Starting Your Hotshot Trucking Business. Because it allows you to quickly determine the profitability of a load. For example, C.R. Some trucking companies will pay for deadhead mileage after the first 100 miles, although it isn’t required. Copyright © 2009–2020 TruckingSuccess.com. Slowing down will save 4,870 gallons of fuel, or $21,915 at $4.50 per gallon of fuel.

Required fields are marked *. That means you won’t accept any load that falls below this number. You find more information in our book “The Successful Truck Owner Operator”. However, owner/operators don’t have that luxury. Being a little philosophical about it makes the time and miles less stressful. I needed data to help me, not a random number I’d picked out of the blue. 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. However, owner/operators don’t have that luxury. I had a plan. But what about that new set of wipers that you paid for out of pocket? Maybe because it’s Friday. Empty miles make up a significant share of all miles driven in the trucking sector. Use this in conjunction with the gas mileage calculator to plan the gas cost of a road trip, or explore hundreds of other calculators addressing health, … Tufoil is available through Fluoramics Inc., 18 Industrial Ave., Mahwah, NJ 07430, phone 1-800-922-0075.

You can use a simple form or a computer program to calculate your cost per mile. 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.

You don’t have to do it. Add your extra expenses in and you’ve got a great picture of your business, without you having to do the refiguring. Let us prove it to you. Deadheading is still a problem in the trucking industry. Some guys just throw receipts into an envelope. Designed by Elegant Themes | Powered by WordPress. You need to know two factors: (1) your operating expenses for a specific time period (a month, a calendar quarter, or a year) and (2) the miles driven in the corresponding time period.

Check the load boards to see if there’s even a partial load along your route. An empty rig is harder to control in strong wind or inclement weather. 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. But with some planning, you can drastically minimize deadhead miles. You can even calculate the cost per mile without these helpful aids because it is quite simple but very important! It burns gas, wears out your tires, and pulls down your potential profit. This free calculator estimates the number of driving miles between two locations in the United States, and also provides written directions.

You can sweat over them, or you can accept them as part of the business.

The IFTA Mileage tool will display the mileage by city to help trucking companies figure out miles per state they travel. At this rate, it won’t take long for deadhead miles to cut into profits, making it difficult to pay IFTA taxes to get a new IFTA sticker. Study the following examples to see the dramatic difference: Assuming you drive 125,000 miles at 70 mph with a fuel efficiency of 5.5 miles per gallon, your truck consumes 22,727 gallons of fuel. Nous voudrions effectuer une description ici mais le site que vous consultez ne nous en laisse pas la possibilité. by TruckingOffice | ELD, IFTA, Trucking Management | 0 comments. By liking us, you will be able to follow our blog on Facebook. An empty trailer weighs less so it is more vulnerable in high winds and could sway, causing accidents. Deadhead miles are those unprofitable miles you may have to drive with an empty truck between loads.

But how exactly do you 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. Your email address will not be published. Generally, most company drivers don’t need to be concerned about deadhead miles. The Cost-Per-Mile Calculation plays an important role in the success of your trucking operation, because it will tell you the operating expenses of your truck per mile driven. All rights reserved.

Deadheading is running an empty trailer as you drive to and from the shipping and unloading points. 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.

Lots of truckers forget a few things… like the truck loan payments and the insurance premiums.

If you want your business to hit its financial targets, you must drastically reduce your deadhead miles. So, avoiding deadhead miles seems like a good plan, right?

So how do you cope with this problem? Or the extra winter fuel additives? Furthermore, deadheading can be dangerous. 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. Now that you have identified the operating cost, you start to think about ways to lower your cost and increase your profit margin.

Steps you can take to reduce operating expenses include: slow down and drive 60 miles per hour; use high quality, synthetic motor oil, and practice preventive maintenance.

Another strategy is to add fuel surcharges as part of the quoted rates. 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.

Some truckers may assume they’re no longer on duty when they’re traveling deadhead miles.

Independent truckers must worry about the effect deadheading will have on their IFTA reporting and payments, not to mention the financial impact. This site uses Akismet to reduce spam. How to Limit Trucking Deadhead. We will let you enter all of last quarter’s data – you’ll find it’s easy with our One Minute Invoice Entry system. The Operations Maintenance Manual for a Caterpillar 3406 truck engine calls for an engine overhaul after using 100,000 gallons of fuel. We have to account for every mile – loaded or not, heading home or to a pickup, bobtail, or with a trailer.

I could assume they’re going home, or maybe they’re on their way to the next load.

If you’re new to the trucking industry, you’ll need to learn about deadhead miles. While running fully loaded is the ideal, it’s not always possible. I said we need a company overview report that puts the key numbers into the trucker’s hands. What your expenses per mile are. But sometimes it’s unavoidable when there are no loads nearby. IFTA login is meant to be a way to streamline the tax payments we truckers and fleet managers have to pay. At this rate, it won’t take long for deadhead miles to cut into profits, making it difficult to pay. Accounting programs think dollars, not miles. When we started TruckingOffice, my father and I sat down and hashed out what needed to be available to owner-operators and fleet managers. But it got me thinking about deadhead miles and the IFTA. The distance that you travel while the trailer is empty is called deadhead miles. But how exactly do you calculate deadhead miles? It’s available wherever you have wifi on your phone or on your tablet. What you need to know is at your fingertips at any moment to help you decide if the deadhead miles you’re going to drive to get a load are worth it. For RVI IDs with more than one vehicle, add these … I remember one guy had a cigar box. that all vehicles within that fleet (RVI ID) traveled within the report period. But this is a mistake. It’s wasted fuel.

This is the total number of miles (including revenue miles, deadhead miles, etc.) You’re still considered officially on duty since you are moving a commercial vehicle.

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