Breaking Down the Real Costs
When you look at a load paying $1.35/mile, you’re not just evaluating revenue vs. diesel. You’re committing your truck, time, and business leverage. Let’s break it down.
1. The Time You’ll Never Get Back
Every load eats your Hours of Service. A full day on a cheap load is a full day you can’t use for something better.
Example:
You accept a 500-mile load at $1.35/mile = $675 gross.
Fuel cost (at 6.5 mpg, $3.76/gal) = $290.
Net before maintenance/insurance = $385.
That’s an 11-hour day for less than $400.
Now let’s say you had waited 12 hours and deadheaded 150 miles to a stronger market. You pick up a 600-mile load at $2.15/mile = $1,290 gross. Even after fuel and the deadhead cost, you net close to $850.
One day was worth double the other. Cheap freight didn’t “get you moving.” It borrowed from tomorrow’s opportunity in essence.
2. The Equipment Wear You Don’t See
Your truck doesn’t care what the load pays. Every mile turns tires, burns oil, and stresses components. The cost of wear and tear doesn’t shrink just because the rate is bad.
Tires: ~3–4¢ per mile.
Maintenance reserves: 15–20¢ per mile.
Depreciation: 20–25¢ per mile.
On a 500-mile load, you’re quietly spending another $150–$200 in equipment cost. When you subtract that from the $385 net above, your true profit is barely over $200. That’s not covering future repairs, it’s delaying them.
3. The Reputation You Build Without Knowing It
Every time you say “yes” to a cheap rate, you train the broker what you’re willing to haul for. It sets a precedent. And in this industry, reputation moves fast.
In reality, the broker’s notes in their TMS don’t say “saved my week.” They say “will haul for $1.35.”
Next time they post, they’ll call you first — not to reward you, but to anchor you at that price.
Before long, your phone rings plenty. But every call is junk freight that doesn’t feel worth it.
4. The Cash Flow Illusion
Cheap freight may sometimes feels like it’s helping cash flow. You see a deposit hit the factoring account, fuel covered, bills paid.
But here’s the math some small carriers don’t run:
Scenario A – Cheap Freight All Week
5 loads, 500 miles each, $1.35/mile = $3,375 gross.
Fuel/maintenance/depreciation = $1,700.
Net = $1,675 for 2,500 miles and 5 full days of work.
Scenario B – Smart Freight + Deadhead
3 loads, 600 miles each, $2.15/mile = $3,870 gross.
Add 300 miles deadhead = $240 cost.
Total expenses = ~$1,850.
Net = $2,020 for fewer miles, fewer days, and less wear.
The cash flow looked good in Scenario A —factoring invoices hit daily. But Scenario B put $345 more in your pocket with less risk. Cheap freight gave you activity, not profitability.
The Psychological Trap
Running cheap freight isn’t just about numbers. It creates a mindset trap.
You start to believe that covering fuel is good enough.
You convince yourself that “a moving truck is better than a parked one.”
You stop negotiating as hard because you don’t think you have leverage.
The result? You run your business like a hamster wheel — always moving, never getting ahead.
When (and Only When) Cheap Freight Makes Sense
Let’s be fair. There are rare times cheap freight may be a necessary evil:
Cash Crunch: If you’re days away from missing fuel or insurance payments, running a cheap load might buy you breathing room.
Repositioning Strategy: Sometimes you take a weak load out of a dead market to get into a stronger one, but only if the math works better than deadheading.
Backhaul Balance: If the outbound was high-paying, a cheap backhaul may still average out profitably — as long as the numbers don’t drag your weekly rate below breakeven.
But these are exceptions, not rules. If you find yourself relying on cheap freight weekly, you don’t have a freight problem — you have a business strategy problem.
How to Break the Cycle
1. Know Your Breakeven to the Penny
If you don’t know your cost per mile (all-in, not just fuel), you’re negotiating partially without full context. If your breakeven is $1.85/mile and you’re hauling $1.35/mile, you’re literally paying to move freight.
2. Stop Playing Every Market Blind
Markets shift daily. Tools like SONAR, Truckstop, or even free load board trendlines give you insight into which lanes are hot. Don’t wait until you’re stuck — plan your next move before you unload.
3. Learn to Say No
This is the hardest discipline. A day parked may feel like wasted revenue, but it’s often less damaging than a day wasted hauling garbage. Sometimes, the word “No” is a profit strategy.
4. Diversify Relationships
If every load you haul is off the open board, you’re always at the mercy of brokers’ leverage. Build direct shipper relationships or partner with a core set of brokers who know you won’t run for pennies.
FAQs
Q: Isn’t some revenue better than none?
Not if the “some” costs you more in time, wear, and lost opportunity than it gives you in cash. If your breakeven is higher than the rate, you’re paying to work.
Q: How do I know if a backhaul is worth it?
Look at the round-trip average. If you get $3.00/mile outbound and $1.20/mile back, you’re still averaging $2.10/mile. That can work. But if the outbound is weak too, you’re just averaging low.
Q: Can cheap freight build relationships with brokers?
Not the way you think. Brokers remember you for the price you accept, not for “helping out.” If you build a relationship, build it on reliability and professionalism — not desperation.
Q: Should I ever accept below breakeven?
Only if the math proves it positions you for higher freight within hours — not days. Anything longer is gambling with your business.
Final Word
Cheap freight is a silent killer. But, cheap freight is also subjective from owner to owner. It doesn’t take you out in one shot — it bleeds you slowly, mile by mile, until you wake up wondering why you’re broke even though your wheels never stopped turning.
For owner-operators and small fleets, the path forward isn’t about chasing every load. It’s about knowing your worth, running your numbers, and having the discipline to say no when the math doesn’t work.
Because here’s the truth: profitability isn’t about being busy. It’s about being smart.
And if that means parking the truck today so you can run stronger tomorrow? That’s not weakness. That’s ownership.