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Glossary

Per Mile Rate

The per mile rate is the amount a carrier is paid for each mile driven on a load, and is the primary measure of load profitability in trucking.

What Is Per Mile Rate?

The per mile rate (also called rate per mile or RPM) is the most common way to price and evaluate trucking loads. It is calculated by dividing the total load pay by the total loaded miles. For example, a $2,500 load over 1,000 miles pays $2.50/mile. Per mile rates vary significantly based on equipment type, lane, season, market conditions, and negotiation skill.

Current average rates with professional dispatch: dry van $2.85/mile, reefer $3.10/mile, flatbed $3.25/mile, step deck $3.25/mile, hotshot $2.60/mile, box truck $2.10/mile (plus stop fees), and power only $2.50/mile. Self-dispatching owner-operators typically earn 20-35% less — for example, $2.10/mile for dry van versus $2.85/mile with FF Dispatch.

However, the per mile rate alone does not tell the full profitability story. You must also consider deadhead miles to the pickup, detention time, fuel costs on the specific lane (mountainous routes use more fuel), and toll costs. The "effective rate" — total pay divided by total miles including deadhead — is a more accurate measure. A $3.00/mile load with 200 miles of deadhead on a 600-mile haul has an effective rate of only $2.25/mile ($1,800 / 800 total miles).

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Why It Matters

Your per mile rate directly determines your gross revenue and take-home pay. A $0.50/mile difference on 10,000 miles/month is $5,000/month — $60,000/year. Understanding how to evaluate rates including deadhead and expenses is the foundation of trucking profitability.

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Real-World Example

Sarah sees two loads on the board. Load A: Dallas to Houston, $3.20/mile, 240 miles, 180 miles deadhead to pickup. Effective rate: $3.20 x 240 / 420 = $1.83/mile. Load B: Dallas to San Antonio, $2.70/mile, 275 miles, 15 miles deadhead. Effective rate: $2.70 x 275 / 290 = $2.56/mile. Load B pays $0.50 less per loaded mile but $0.73 more per effective mile. Her FF Dispatch dispatcher books Load B and saves Sarah money.
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How FF Dispatch Handles This

FF Dispatch evaluates every load on effective rate — not just the posted rate. We factor in deadhead, fuel costs, tolls, and positioning value before recommending loads. This is why our carriers earn $2.85/mile average versus $2.10/mile for self-dispatching.

Related Terms

Gross Revenue

Gross revenue is the total income a carrier earns from hauling freight before any expenses, commissions, or taxes are deducted.

Deadhead Miles

Deadhead miles are the miles a truck drives empty without any freight, generating zero revenue while still costing fuel and wear.

Fuel Surcharge

A fuel surcharge is an additional per-mile charge added to the freight rate that adjusts for fluctuations in diesel fuel prices, protecting carriers from volatile fuel costs.

Rate Confirmation

A rate confirmation is a written agreement between a carrier and broker that specifies the load details, pay rate, pickup/delivery requirements, and terms of the haul.

Dispatch Service

A dispatch service is a company that finds loads, negotiates rates, handles paperwork, and manages logistics for owner-operators in exchange for a percentage of the load revenue.

Related Content

Dry Van DispatchReefer DispatchFlatbed DispatchStep Deck DispatchHotshot DispatchBox Truck DispatchPower Only Dispatch

Frequently Asked Questions

What is a good per mile rate?+
It depends on equipment type. With FF Dispatch: dry van $2.85, reefer $3.10, flatbed $3.25, hotshot $2.60, box truck $2.10 (plus stop fees). Any rate below $2.00/mile for a semi is generally below market.
Why does my dispatcher sometimes recommend a lower-rate load?+
Because the effective rate (including deadhead) may be higher, or the load positions you for a better-paying next load. A $2.50/mile load near your current location often beats a $3.00/mile load 200 miles away.
How are per mile rates determined?+
Rates are driven by supply and demand — available trucks versus available freight in a specific lane. Seasonal demand, fuel prices, economic conditions, and weather all affect rates. Brokers set initial rates based on these factors, then negotiate with carriers.

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