Understanding Freight Rates: RPM, Deadhead, and What a Load Is Really Worth

A load that pays $2.50 a mile can be worse than one paying $2.10 — once you count the empty miles to get to it. Reading rates correctly is how you stop hauling for less than a load is worth.

Rate per mile (RPM), and why “all-in” matters

RPM is the total rate divided by loaded miles. But brokers quote both linehaul and “all-in” (including fuel surcharge and accessorials). Always compare all-in to all-in, and always confirm the rate before the load is booked.

Deadhead: the miles nobody pays for

Deadhead is the empty distance you drive to reach a pickup. If a $2.50/mile load sits 150 empty miles away and a $2.10/mile load is at your door, the second one often nets more per total mile. Good dispatching plans loads back-to-back to keep deadhead low.

Know your cost per mile — then know when to say no

If you know your all-in cost per mile (fuel, maintenance, insurance, truck payment), you know the floor below which a load loses money. The most profitable operators turn down cheap freight and hold out for rates that clear that floor with room to spare. That’s exactly the market read a dispatcher brings to every negotiation.