𝐖𝐡𝐲 ‘𝐑𝐚𝐭𝐞 𝐏𝐞𝐫 𝐌𝐢𝐥𝐞’ 𝐈𝐬 𝐚 𝐃𝐚𝐧𝐠𝐞𝐫𝐨𝐮𝐬 𝐈𝐥𝐥𝐮𝐬𝐢𝐨𝐧. 𝐓𝐡𝐞 𝐇𝐢𝐝𝐝𝐞𝐧 𝐌𝐞𝐭𝐫𝐢𝐜 𝐄𝐯𝐞𝐫𝐲 𝐂𝐚𝐫𝐫𝐢𝐞𝐫 𝐒𝐡𝐨𝐮𝐥𝐝 𝐓𝐫𝐚𝐜𝐤 𝐈𝐧𝐬𝐭𝐞𝐚𝐝

Most carriers live and die by their rate per mile.

It’s the golden number, right? The higher the rate, the better the load. But what if I told you that chasing a high rate per mile might actually be costing you money?

Let me explain why.

𝟏. 𝐓𝐡𝐞 ‘𝐂𝐨𝐬𝐭 𝐏𝐞𝐫 𝐌𝐢𝐥𝐞’ 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 𝐂𝐡𝐞𝐜k

Before you even look at a load’s rate per mile, you need to ask yourself one critical question:

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐦𝐲 𝐜𝐨𝐬𝐭 𝐩𝐞𝐫 𝐦𝐢𝐥𝐞?

Why? Because if you don’t know how much it costs to run your truck for every mile you drive, you might be accepting loads that seem profitable but are actually pushing you into the red.

Let’s break it down:

Your cost per mile includes everything it takes to keep your wheels turning, such as:

– Fuel costs (which fluctuate constantly)

– Insurance premiums

– Truck payments or maintenance

– Tires and repairs

– Dispatch fees (if any)

– Tolls and permits

– Driver pay (if you have drivers)

– Taxes

For example:

If your cost per mile is $2.80 and you take a load paying $3.00 per mile, you’re only profiting 20 cents per mile — which might not even be worth the time, especially if there are delays or extra costs.

On the other hand, a load paying $2.50 per mile might actually be more profitable if your cost per mile is $1.80, giving you a 70-cent profit per mile.

The first step to fix this is calculating your cost per mile. The formula is simple:

(Total monthly expenses ÷ Total miles driven in the month = Cost per mile)

Once you know this number, you’ll never blindly chase high rates again. Instead, you’ll be focused on loads that pay above your cost per mile — securing real profit, not just flashy rates.

Without knowing your cost per mile, a $3.50/mile load could feel like a win — but if your cost per mile is $3.20, your margin is razor-thin.

The key isn’t just high rates — it’s high margins.

𝟐. 𝐓𝐡𝐞 ‘𝐑𝐚𝐭𝐞 𝐏𝐞𝐫 𝐇𝐨𝐮𝐫’ 𝐑𝐞𝐚𝐥𝐢𝐭𝐲

While rate per mile shows what you’re earning for each mile you drive, it completely ignores one crucial factor,–time.

A $4.00/mile load sounds great until you realize:

It’s a short haul with 5 hours of loading and unloading time.

You spent 2 hours waiting for the broker’s confirmation.

The drop-off location requires an overnight wait for a morning appointment.

By the time you factor in all that lost time, your “$4.00/mile” load might actually be paying you less than $30/hour — less than a lower-paying load with faster turnover.

Stop looking at rate per mile alone. Always calculate your rate per hour:

(Total Load Pay ÷ Total Hours Spent on the Load = Rate per Hour)

If a load takes 10 hours in total (including waiting time) and pays $800, your real rate is $80/hour — not just $4.00/mile.

Rate per mile also tricks carriers into ignoring their next move.

Say you haul a high-paying load into a remote area with no outbound loads. That $3.80/mile load looks fantastic — until you realize you’re stuck there with two choices:

– Wait hours (or days) for a backhaul.

– Deadhead 150 miles to the next load.

Now, factor in that time spent waiting or deadheading, and suddenly that $3.80/mile load doesn’t seem so profitable.

Next time, Look at lane consistency. Always plan loads in pairs — the inbound and the outbound. A slightly lower-paying load with a guaranteed backhaul can be more profitable than a high-paying load into a freight desert.

Rate per mile can also hide sneaky costs:

– Detention time (that brokers sometimes “forget” to pay)

– Lumper fees

– Extra fuel for heavy loads

A $3.00/mile load might shrink to $2.50/mile after you pay a $100 lumper fee or burn extra fuel hauling a 45,000 lb load.

Focus on the all-in rate — what you actually keep after all expenses. Before accepting a load, ask:

– Are there any lumper fees?

– Is detention paid after a certain time?

– What’s the fuel estimate for this weight?

A lower rate per mile with fewer hidden costs can sometimes pay more than a higher rate that’s packed with extra expenses.

Rate per mile is a piece of the puzzle, but it’s not the whole picture.

To truly maximize your revenue, start tracking:

Cost per mile — to know your baseline profitability

Rate per hour — to value your time

Load turnover speed — to increase weekly capacity

All-in rates — to catch hidden expenses

Profit per day — to focus on what you actually keep

It is about mastering your time and money. Feel free to reach out if you would like help with streamlining your operations.