It’s important to realize that not every load you get is worth your time or your fuel costs in the freight industry. Hauling low-paying goods can make you earn less, use up your time, and cause extra wear and tear on your vehicles. If you are an owner-operator or part of a small fleet, knowing how to avoid low-paying loads is important for your company’s success. In this article from B-LOADED, we’ll look into the reasons for low-paying loads, how to spot them, and the best ways to prevent them so you can make more money and drive more wisely.
How Low-Paying Loads Can Be More Problematic Than You Expect
Taking on low-paying jobs can seriously reduce your earnings as time goes on. Consider this:
- In 2024, the DAT Freight & Analytics report showed that dry van rates averaged $2.03 per mile, while many low-paying loads were often below $1.30 and did not even cover what it cost to operate the truck.
- Because fuel prices are unpredictable and represent a big part of a trucker’s expenses, low rates are even more harmful.
- Many times, extra costs such as deadhead miles, delays, tolls, and wear on vehicles are not included in the payment.
Trucking involves small differences, and avoiding bad loads helps you protect your business.
What Factors Make a Job Pay Less?
The type of load can vary a lot. The following are the usual traits of a low-paying job:
1. RPM stands for the poor rate per mile.
This is the clearest sign to watch out for. If you’re not getting paid well for every mile, it’s not a good idea to do the haul. It is smart to keep track of your CPM and always make sure every load earns more than that.
2. Long Distance Travel
You might earn a lot from a load, but if you have to drive a long, empty distance to get it, your earnings can go down fast.
3. Waiting for Too Long
Working in detention without pay can make you less productive every day. Check if the brokers give detention pay even after the usual two-hour period.
4. Tough Places or Routes
When shipments are sent to crowded or not-so-busy areas, it can be tough to remove them, which may cause delays for the business.
Ways to Spot Low-Paying Loads in Advance
Before accepting a job, it’s important to notice if it pays well. Here are some tips that will help you check load offers:
Make Sure to Use Load Boards Effectively
There are differences between different load boards. Sites such as DAT Load Board and Truckstop.com give you access to rate information and broker credit ratings to help you judge the worth of a load.
Look for:
- The average cost of lanes
- An overview of broker payments
- Load-to-truck ratios
Select Important Questions
Don’t rely only on what the broker tells you. Check the following before you take on a load:
- What is the price for each mile traveled?
- Are there any extra charges for using the road?
- Do detention guards get paid extra for their work?
- When can I make an appointment?
Determine Your Cost to Go One Mile
It is impossible to measure how profitable a load is unless you know your operating costs. Calculate the costs you have every month (fuel, maintenance, insurance, permits, etc.) and divide them by the total miles you drive. If the CPM is $1.72 and the load pays $1.50, you will already be losing money before you begin your trip.
Ways to Avoid Getting Low-Paying Jobs
1. Connect with Reliable Brokers
When you have a good relationship with a broker, you can expect to get fair and regular freight. Make sure to consider brokers that have
- Transparent communication
- A good record of making payments
- The ability to negotiate with others
2. Focus on a Niche
Flatbeds, refrigerated trailers, and Hazmat loads are usually more profitable because they have special needs. Look into getting the education or tools required to work in a more lucrative area.
3. Book Your Ticket in Advance to Save Yourself Time
If you plan your week, you can choose what you want instead of feeling rushed. When you need to ship last-minute, you usually get poor rates and have fewer chances to negotiate.
4. Make use of technology and rate tools to help you.
You can use the following apps:
They allow you to assess different lanes, review the prices offered, and decide on data usage.
5. Be aware of the trends that happen each season.
Freight rates are affected by the amount of demand. For example:
- Q4 is the time when retail shipments reach their highest, so there is more freight and better prices.
- The rates tend to fall in the first quarter after the holidays.
If you know when to speed up and when to slow down, you won’t end up taking jobs that won’t pay well just to keep going.
Things to Be Careful of When Receiving Load Offers
Be on the lookout for these indications that a load isn’t worth picking up.
- If you get a message that you must act fast, it could mean no other shipper wanted the item.
- Confusing information: There is little detail about how to pick up or get your items delivered.
- If they are unable to explain detention, layover, or lumper fees, then you should leave.
- No written confirmation of the rate: Always ask for the rate and terms to be put in writing.
When It’s Okay to Say No
Telling a broker no to a low-paying load may seem risky at first for those who are new to the business. Still, we should keep in mind the alternative uses for those resources. Picking up a bad load can stop you from getting two better ones.
Here are the occasions when you should leave the situation:
- The rate is lower than your CPM.
- The broker does not give clear answers.
- It is not possible to check the payment terms.
- The workload includes extra duties that are not paid (like waiting for long periods or handling things).
Being smart while running can make you more successful than just running hard. Truckers who want to remain profitable should keep the following in mind. Staying away from low-paying loads is not only about getting high rates; it’s about being smart, organized, and aware of your worth. These are the main points:
It is important to track your numbers.
- Find out your CPM.
- Use rate tools to confirm the offers you get.
Choose your battles wisely and use a strategy.
- Stay away from making purchases you don’t need.
- Pre-book your tickets whenever you can.
Make Connections and Focus on Your Area
- If brokers are good, you will get the same rates every time.
- Working in a niche area of trucking means you can earn more money.
Make sure to keep yourself updated.
- Make use of load boards that provide analysis tools.
- Pay attention to what is happening in the market and during different seasons.
Final Thoughts
Trucking is more than driving; it is a business, too. If you learn to avoid low-paying jobs, you’re not only protecting your profits but also creating a business that will last in the future. Not every task should take up your time. Be smart behind the wheel rather than just driving fast.
