Carriers price by mile, by load or by hour for local work, plus accessorials such as detention, layover, lumper reimbursement, stop-offs and fuel surcharges. Know your cost per mile, and negotiate with brokers using it.
Rate components
| Component | What it covers |
|---|---|
| Linehaul rate | Per mile or flat |
| Fuel surcharge | Fuel price changes |
| Detention | Waiting beyond free time |
| Stop-off | Extra stops |
| Layover | Overnight delays |
| Lumper | Unloading fees reimbursed |
Worked example: evaluating a load
A load pays a flat rate for a set number of miles with deadhead to pickup. Andre adds deadhead to loaded miles, divides the rate by total miles, and compares with his cost per mile plus profit.
Mistakes
- Ignoring deadhead
- Not negotiating detention
- Taking loads below cost
Detention and accessorials
Detention pay compensates carriers for waiting beyond free time at shippers and receivers, often two hours. Make sure rate confirmations state detention terms, record arrival and departure times (ELD data and signed in/out times help), and invoice promptly. Other accessorials include layover, stop-offs, tarping for flatbed, lumper reimbursement and truck-ordered-not-used fees. Clear accessorial terms protect your margins.
Mistakes
- Accepting loads without reading the rate confirmation
- Not documenting detention
- Ignoring deadhead in rate math
Worked example: a dedicated lane quote
A manufacturer asks Andre to quote a weekly run from its plant to a distribution center three hundred miles away, returning empty. Andre adds loaded and empty miles, applies his cost per mile including fuel, adds driver time for loading and unloading, and adds margin. He proposes a flat weekly rate with a fuel surcharge tied to a published diesel index, detention after two hours and terms for cancellations. A written agreement protects both sides.
Sample rate confirmation checklist
- Pickup and delivery addresses and appointment times
- Commodity, weight and pieces
- Rate and fuel surcharge
- Detention terms and free time
- Lumper and stop-off terms
- Payment terms
- Broker or shipper contact
Keeping prices healthy
Carrier rates must cover cost per mile including deadhead, plus detention and accessorials; know your numbers before accepting loads.
One more thing to know
Review your cost per mile each quarter as fuel, insurance and maintenance costs change, and update the minimum rate you accept. Many carriers keep a simple spreadsheet of each load's revenue, miles and costs to see which lanes and customers are profitable.
What affects your price
- Lane and miles
- Equipment type
- Accessorials
- Fuel
Free tools
Common questions
How do I set rates?
Start from cost per mile and market data.
Should I charge detention?
Yes; agree terms in the rate confirmation.
What about fuel surcharge?
Common in direct contracts.
How do I negotiate?
Know your numbers and the lane.
How do I prove detention?
Record arrival and departure times, get signed in/out times when possible and keep ELD records.
Should I offer a discount for dedicated lanes?
Steady volume can justify a competitive rate; make sure it still covers costs and empty miles.
Should we post rates?
Most carriers quote per load.
Should we charge for tarping?
Flatbed carriers commonly charge a tarp fee; agree on it in the rate confirmation.
Give customers a clear way to describe the job and request a quote
A quote form that asks the right questions saves back-and-forth and makes your business look organized.
See websites with quote forms