So-called deadhead miles or empty miles are an expensive and ineffective fact of the trucking business. They are caused when a truck is travelling without a load, and this translates to revenue loss, high fuel expenses, as well as unnecessary wear on the trucks.
The issue of empty miles is of critical relevance in the case of owner-operators, small fleet owners, and dispatchers keen on maximising profits and ensuring efficient business at the same time. This guide will present a definition of empty miles, its economic effect and practical measures that can be implemented to minimise the empty miles. We will also look at how the truck dispatchers can be involved in ensuring such unproductive miles are minimised.
What Are Empty Miles?
EEmpty miles or deadhead miles are the distances covered by a truck of which no freight. Common scenarios include:
- Going home after the delivery of a load.
- Driving up to collect a new shipment, empty.
- The scheduling requirement involves moving a truck to another place.
Why empty miles happen:
- Bad time scheduling or direction.
- Inability to access opportunities in backhaul.
- Economic changes are leaving trucks out of use.
Industry context:
The industry statistics indicate that in certain trucking companies, 20-30 of total miles are empty miles, which is a serious cost element to the truckers as well as the owner-operators.
Financial Impact of Empty Miles on Trucking Operations
The empty trucks have a direct impact in the bottom line of trucking companies and independent drivers. There are major financial implications, which include:
- Fuel Costs: The act of driving without freight implies that one is paying money on fuel without earning any income. This can be a great cost with the increase in fuel prices.
- Vehicle Wear and Tear: Extra mileage increases in the maintenance requirements and consequently expenses in repairs and replacement of tires escalate.
- Driver Wages: Even during times when trucks are empty, drivers are paid the time and mileage.
- Reduced Profitability: Empty miles will remain high, and this may cause a low profit margin.
Example:
Assuming that a truck covers 1,000 empty miles each month and costs are 1.50 a mile, then the truck spends 1,500 without revenue on it and that is a obvious drain on profit making.
Strategies to Reduce Empty Miles in Trucking
THe process of minimizing empty miles must be planned, logistically smart and through technology integration. Here are proven strategies:
Backhaul Opportunities
One of the best methods of decreasing empty miles is to find loads going back after delivering goods. The dispatchers and truckers ought to actively pursue:
- Round-trip agreements with the shippers.
- Backhaul opportunities are loaded and find markets in freight markets.
Route Optimization
With technology planning of the most efficient routes, empty miles are minimised by:
- Putting several deliveries in a route together.
- Not taking pointless shortcuts.
- Bringing the priorities to loads that coincide with the next pickup point of the truck.
Cooperation with Freight Brokers.
Freight brokers are the links between the shippers and the carriers that are interested in the shipments of backhauls. Leveraging brokers helps:
- Minim empty load miles.
- Ensure steady inflows of revenue.
Fleet Management Software
The modern software solutions have tools available to:
- Monitor real-time truck locations.
- Determine the loads of the backhaul available in the vicinity.
- Predict demand and save time.
Strategic Partnerships
Collaboration with other carriers or other logistics firms would enable the distribution of the trucks more cost-effectively, thus cutting on the empty Faraday miles by sharing the loads.
How Truck Dispatchers Can Help Reduce Empty Miles
Truck dispatchers are critical in reducing empty miles:
- Proactive Planning: Dispatchers will have an opportunity to plan pickups and deliveries in order to prevent long and empty trips.
- Load Matching: Dispatchers are able to secure backhaul loads by observing load boards as well as broker networks.
- Communication: Informing the drivers of the available freight near them ensures they do not miss any opportunity.
- Efficiency Tracking: The dispatchers use the past routes to determine trends that result in high empty mileage.
Case Study Example:
The owner-operator collaborated with a professional dispatcher and saved 25 per cent of the empty miles in three months, resulting in great savings on fuel usage and revenue.
Additional Insights: Industry Best Practices
- Driver Incentives: Use the incentive of performance bonuses to encourage drivers to pick up backhaul loads.
- Data-Driven Decisions: Calculate routing decisions on routes and lanes that drive empty miles.
- Diversified Freight Types: The combination of different types of freight ensures stable chances of having backhaul shipments.
- Network Expansion: Establishing a full relationship with various shippers will guarantee the continuity of freight in both directions.
Conclusion
The empty miles represent one of the biggest trucking operation issues, as they can be minimised with the right strategies. The owner-operators, small fleets, and dispatchers can benefit from:
- Coupled with opportunities for backhaul.
- On high-tech fleet management tools.
- Collaborating with dispatch and brokers.
- Installation of strategic route planning and analytics.
Cutting down empty miles will result in increased profitability, reduced cost, and a sustainable trucking operation.
CTA:
Contact Dexter Dispatch Services at dexterdispatchservices.com to receive professional assistance on how to minimise empty miles, routes, and profit maximisation. Make your fleets run profitably.