Managing Deadhead Miles

Deadhead miles—miles driven without paid freight—are the silent profit killer in trucking. Every deadhead mile costs money (fuel, driver time, wear) while generating zero revenue. Successful dispatchers minimize deadhead through strategic planning, backhaul booking, and smart positioning. This guide provides proven strategies for reducing deadhead and maximizing profitability.

What are Deadhead Miles?

Definition:

Deadhead:

Miles driven with empty trailer (no paid freight)
Costs money but generates no revenue
Reduces overall profitability

Types of Deadhead:

1. To Pickup:

Driving from current location to load pickup
Example: Deliver in Dallas, next load picks up in Houston (250 mi deadhead)

2. From Delivery:

Delivery location has no available freight
Must drive empty to find next load
Example: Deliver in remote area, drive 150 mi to major city for next load

3. Repositioning:

Strategic move to better freight market
No immediate load, positioning for future opportunity

The Cost of Deadhead

Financial Impact:

Per-Mile Costs (No Revenue):

Fuel: $0.50-$0.70/mile
Driver pay: $0.40-$0.60/mile (if paying for all miles)
Truck payment: $0.15-$0.25/mile
Maintenance: $0.10-$0.15/mile
Total: $1.15-$1.70/mile lost

Example:

200 deadhead miles × $1.50/mi cost = $300 loss
Could have been $400-$600 revenue with backhaul

Industry Benchmarks:

Acceptable Deadhead:

Under 10%: Excellent (best-in-class)
10-15%: Good (industry average for efficient fleets)
15-20%: Acceptable (room for improvement)
Over 20%: Poor (losing significant money)

Calculation:

Deadhead % = Deadhead Miles ÷ Total Miles × 100

Example:

Total miles: 10,000/month
Deadhead miles: 1,200/month
Deadhead %: 1,200 ÷ 10,000 = 12% (Good)

Strategies to Minimize Deadhead

1. Backhaul Planning:

Book Return Load Before Delivering:

Process:

Driver en route to Dallas delivery tomorrow
Dispatcher searches Dallas area TODAY for next load
Book load for pickup tomorrow PM or next day AM
Driver delivers → Picks up next load → Minimal deadhead

Tools:

Load boards (DAT, Truckstop)
Broker relationships ("I'm delivering in Dallas tomorrow, got anything?")
TMS automated load matching

Goal:

Zero or minimal miles between delivery and next pickup

2. Strategic Load Selection:

Consider Destination Quality:

Scenario:

Load A: $3,000 to Dallas (good freight market)
Load B: $3,200 to remote West Texas (terrible freight market)

Analysis:

Load B pays $200 more
But finding Load 3 from West Texas → Might deadhead 300 mi = $450 cost
Load A better choice despite lower rate

Strategy:

✅ Favor loads to major freight markets (Dallas, Atlanta, Chicago, CA)
✅ Avoid loads to dead markets even if rate slightly higher
✅ Think 2-3 loads ahead

3. Triangle Routes:

Eliminate Deadhead with Circuits:

Example Circuit:

Load 1: CA → TX ($3,500, 1,500 mi)
Load 2: TX → GA ($2,700, 1,200 mi)
Load 3: GA → CA ($2,800, 2,200 mi)
Total: $9,000 revenue, 4,900 miles, 0% deadhead

How to Build:

Identify balanced freight triangles
Book all 3 legs before starting
Adjust timing to connect seamlessly

4. Dedicated Lanes:

Run Same Routes Repeatedly:

Advantages:

Learn best backhaul sources
Build broker relationships on specific lanes
Predictable deadhead (minimize over time)
Know optimal fuel stops, timing, etc.

Example:

Specialize in CA → TX → CA
Book outbound and backhaul as package
Broker knows you run it weekly = preferred carrier

5. Radius Flexibility:

Expand Search Radius:

If No Freight at Exact Delivery Location:

Expand search radius to 100 miles
Often worth 50-mile deadhead to get 1,400-mile paid load
Better than waiting or longer deadhead

Example:

Deliver in Amarillo, TX (small market)
No freight in Amarillo
Search 100-mile radius → Find load in Lubbock (120 mi away)
120 mi deadhead acceptable to get next load

When Deadhead is Acceptable

1. Positioning for Better Market:

Strategic Deadhead:

Deadhead from low-rate market to high-rate market
Cost of deadhead < Value of better market

Example:

Deliver in El Paso (poor freight)
Deadhead 550 mi to Dallas (excellent freight)
Cost: 550 × $1.50 = $825
Benefit: Access to Dallas → CA at $2.80/mi (vs. El Paso → CA at $1.80/mi)
Worth it if next load captures premium

2. Driver Home Time:

Personal Deadhead:

Deadhead to get driver home
Retention value > Deadhead cost

Calculation:

Deadhead 300 miles to get driver home: $450 cost
Driver retention value: Saving $5,000-$10,000 replacement cost
Easily worth it

3. Equipment Repositioning:

Seasonal Positioning:

Deadhead to position for seasonal freight
Example: Reefer trucks to California in spring (produce season)

Market Opportunity:

Major event, disaster, etc. creates freight surge
Position trucks to capitalize

Calculating Deadhead Impact on Profitability

All-In Rate Calculation:

Example Load:

Deadhead to pickup: 100 miles
Loaded miles: 1,200 miles
Total all-in miles: 1,300 miles
Gross revenue: $2,640 ($2.20/loaded mile)

All-In Rate:

$2,640 ÷ 1,300 mi = $2.03/mi (all-in)
vs. $2.20/mi (loaded only)

Profitability:

All-in rate $2.03/mi - Cost $1.65/mi = $0.38/mi profit
1,300 miles × $0.38 = $494 profit

Decision:

Is 100 mi deadhead acceptable for this profit?
Could shorter deadhead load be more profitable?

Acceptable Deadhead Distance:

Rule of Thumb:

Deadhead Up To:

10% of loaded miles is acceptable
1,000-mile load → 100-mile deadhead OK
500-mile load → 50-mile deadhead OK

Premium Rate Exception:

Willing to deadhead more for exceptional rate
Example: 200 mi deadhead for $4.00/mi load (may be worth it)

Technology for Deadhead Reduction

TMS Features:

Automated Matching:

TMS suggests next loads based on delivery location
Shows deadhead miles for each option
Ranks by profitability (all-in rate)

Example:

Delivering in Phoenix tomorrow
TMS shows 5 loads within 50 miles
Ranks by all-in profitability
Dispatcher picks best option

Load Board Optimization:

Search from Delivery Location:

Pre-plan backhaul while driver en route
Book in advance
Use "notify me" features for specific lanes

Saved Searches:

Save frequent delivery locations as search templates
Quick access to common backhaul searches

Conclusion

Managing deadhead miles is essential for profitability in trucking. Every percentage point reduction in deadhead translates directly to increased profit. Through strategic planning, backhaul booking, and smart load selection, dispatchers can minimize deadhead and maximize revenue.

Key Takeaways:

Deadhead Impact:

Costs $1.15-$1.70/mile with zero revenue
Target: Under 10-15% of total miles
Every 1% reduction = $1,000-$2,000/truck/year savings

Reduction Strategies:

✅ Book backhauls before delivering
✅ Choose loads to good freight markets
✅ Build triangle/circuit routes
✅ Specialize in dedicated lanes
✅ Use radius flexibility in searches

Acceptable Deadhead:

✅ Up to 10% of loaded miles (rule of thumb)
✅ Strategic positioning to better market
✅ Driver home time
✅ Seasonal repositioning

Calculate:

✅ All-in rate (revenue ÷ total miles including deadhead)
✅ Compare alternatives
✅ Think round-trip, not one-way

"Deadhead miles are profit killers. Plan ahead, book smart, and keep those wheels rolling with paying freight."

Continue Learning:

Master deadhead management for maximum profitability. Continue your education at Carriversity.

Managing Deadhead Miles