How to Minimize Deadhead Miles
In the fast-paced world of logistics, every mile counts, especially when it comes to deadhead trucking. As carriers continually strive to optimize their supply chain operations, cut costs, and minimize their environmental footprint, understanding the nuances of deadhead trucking becomes paramount. Learn how to avoid deadhead miles, save costs, and optimize your logistics operations for a sustainable future.
1
What are Deadhead Miles?2
The Costs of Deadhead Miles and More3
How to Calculate the True Cost of Deadhead Miles4
How to Reduce Deadhead Miles
What are Deadhead Miles?
Deadhead miles, the practice of transporting an empty trailer after delivering cargo, may seem innocuous but carries significant drawbacks. It leads to increased operational costs, limited efficiency, environmental impact, riskier driving conditions, lost revenue opportunities, and inefficient resource use.
The Costs of Deadhead Miles and More
- Deadhead Costs:
With an empty trailer, this heavily impacts the company's bottom line. On average, a truck travels 120,000 miles per year; it is estimated that 18,000 to 36,000 will be deadhead miles. So how much would you be losing on a single truck?
Dry Vans: Estimated deadhead miles: 18,000 to 36,000 per year. The national average spot rate: $2.12 per mile. Revenue loss: $76,320 to $152,640 per year.
Reefers and Flatbeds: Estimated deadhead miles: 18,000 to 36,000 per year. The national average spot rate: $2.42 per mile. Revenue loss: $87,120 to $174,240 per year. - Asset Wear and Tear:
Additional miles contribute to vehicle wear, leading to maintenance needs and potential breakdowns. On average, trucks need over $15,000 in maintenance a year. The most common repairs are issues with air lines and hoses, alternators, wiring, and brakes. - Environmental Impact:
Deadhead miles result in carbon emissions without serving a productive purpose, contradicting sustainability goals. - Employee Morale:
Drivers not compensated for deadhead miles may experience frustration, impacting their morale and attention on the road.
How to Calculate the True Cost of Deadhead Miles
Understanding the real impact of deadheading involves a comprehensive approach, considering factors like time, vehicle wear, fuel, and insurance. By quantifying these elements, carriers gain insights into the financial implications of empty miles, motivating them to seek strategies for minimizing deadhead trucking.
How to Reduce Deadhead Miles
- Utilize Technology for Route Planning
- Leverage your transportation management software, such as 10 Speed, for comprehensive visibility.
- Plan routes ahead, using load boards and client management tools to minimize deadheading.
- Stay on Schedule
- Adhere closely to pre-planned schedules to avoid shipping delays that can lead to deadhead trips.
- Research alternate routes in advance to mitigate potential traffic or weather-related delays.
- Paid Deadhead Routes are Prioritize
- When deadheading is unavoidable, prioritize clients offering reasonable compensation for empty miles.
- Explore load boards and collaborate with freight brokers to secure higher-paying deadhead routes.
Conclusion
Mitigating the impact of deadhead miles is pivotal for achieving a sustainable and efficient logistics operation. From fuel costs to environmental concerns, the repercussions are profound. To revolutionize your logistics strategy and embark on a journey toward increased efficiency, reduced deadhead miles, and improved profitability, consider leveraging the advanced capabilities of 10 Speed TMS. Our transportation management software provides comprehensive route visibility, efficient load planning, and schedule adherence, ensuring you maximize revenue and minimize the hidden costs of deadhead miles. Ready to transform your logistics game? Book a demo with 10 Speed TMS today and pave the way for a more sustainable and profitable future.
David Jordan Guerra
Logistics Market Researcher
I strive to keep myself informed by understanding the latest information involving the diverse world of the logistics industry.
