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Load pay of $2,500 for 850 loaded miles with 50 deadhead miles: Total miles = 900. Rate per mile (all miles) = $2,500 / 900 = $2.78/mile. With fuel at $3.50/gal and 6.5 MPG, fuel cost = $484.62. Operating cost = $450.00. Net profit = $1,565.38. Profit margin = 62.6%.
A good rate per mile is $2.50 to $3.50 depending on your region, lane, and freight type. Dry van typically pays $2.00-$3.00/mile, reefer $2.50-$3.50/mile, and flatbed $2.50-$4.00/mile. Always factor in ALL miles including deadhead.
Yes, deadhead miles significantly impact your effective rate per mile. Your total miles include both loaded and empty miles. For example, a $2,500 load for 850 miles looks like $2.94/mile, but with 150 deadhead miles it drops to $2.50/mile.
Know your true cost per mile before negotiating. Use market data from load boards to understand lane rates. Build relationships with brokers and shippers for repeat business. Be willing to walk away from loads that don't meet your minimum rate.