Carrier Guide/Money & Rates

Money & Rates

Understanding Rates & RPM

Learn how to evaluate freight rates, calculate RPM, and decide whether a load makes financial sense.

A load can look attractive at first glance, but the rate alone does not tell you whether it is a good move. Carriers should look at the total miles, equipment required, deadhead, trip length, timing, and where the load leaves them after delivery.

What Is RPM?

RPM means Rate Per Mile. It is one of the simplest ways to compare freight opportunities because it puts the offered rate into the context of the distance you need to travel.

Rate

The total amount offered or agreed for transporting the load.

Loaded Miles

The distance from the pickup location to the delivery location.

RPM

The load rate divided by the loaded miles. This gives you the revenue per loaded mile.

Deadhead

The unpaid distance you travel to reach pickup or reposition after delivery.

RPM is a comparison tool

A higher RPM does not automatically mean a better load. A short load with a strong RPM may produce less total revenue, while a longer load with a lower RPM may still make sense if the route, timing, and destination work for you.

Reference Rates by Equipment

The ranges below are general market references intended to help carriers evaluate opportunities. Actual rates can vary significantly by lane, distance, urgency, equipment, season, available capacity, market conditions, and deadhead.

Cargo Van / Sprinter Van

Expedite freight commonly uses distance-based pricing. Short trips can require higher minimum charges, while longer trips often settle into a lower RPM with greater total revenue.

Box Truck

Box truck freight generally supports higher RPM on short and regional moves, with RPM typically decreasing as trip distance increases.

Dry Van

A useful current national reference is around $2.20 per loaded mile for spot linehaul. Individual lanes can be substantially higher or lower.

Reefer

Refrigerated freight generally commands a premium over dry van because of equipment requirements and operating costs. A current national reference is around $2.60 per loaded mile.

Flatbed

Flatbed freight often carries stronger rates because of specialized equipment and loading requirements. A current national reference is around $2.70 per loaded mile.

Step Deck

Step deck freight can command a premium when the load requires additional deck height or specialized equipment. Recent market references have been around the upper-$3 range per loaded mile.

These are not guaranteed CargoVans rates

Market rates change constantly. Use these figures as reference points when evaluating freight, not as a promise of what a particular load will pay or what a carrier should accept.

Cargo Van & Sprinter Reference Points

For cargo vans and Sprinter vans, short-haul freight often needs a minimum charge because the carrier still spends time and money getting to pickup, loading, delivering, and completing the trip. As distance increases, the RPM can decline while the total trip revenue increases.

100 Miles

Reference range: approximately $200–$300 total, or about $2.00–$3.00 per loaded mile.

250 Miles

Reference range: approximately $325–$375 total, or about $1.30–$1.50 per loaded mile.

500 Miles

Reference range: approximately $550–$625 total, or about $1.10–$1.25 per loaded mile.

1,000 Miles

Reference range: approximately $900–$1,000 total, or about $0.90–$1.00 per loaded mile.

Box Truck Reference Points

Box truck pricing can behave differently from cargo van freight. Short trips may produce a particularly high RPM because the carrier needs to cover the fixed time and operating costs of completing the load.

50 Miles or Less

Reference range: approximately $250–$300 total, or about $5.00–$6.00 per loaded mile.

100 Miles

Reference range: approximately $300–$350 total, or about $3.00–$3.50 per loaded mile.

250 Miles

Reference point: approximately $575 total, or about $2.30 per loaded mile.

500 Miles

Reference range: approximately $850–$925 total, or about $1.70–$1.85 per loaded mile.

How Distance Changes RPM

Do not judge every load using the same RPM target. Short-haul and long-haul freight have different economics. A short trip may need a much higher RPM to justify the time involved, while a longer trip can work at a lower RPM because the total revenue is greater.

Short Hauls

Minimum charges become more important because loading, waiting, pickup, and delivery time can represent a large portion of the trip.

Regional Loads

Look at both RPM and total revenue. Regional freight can be attractive when delivery puts you in a useful market for your next load.

Long Hauls

RPM commonly decreases as distance increases, so evaluate the total revenue, operating costs, destination, and time commitment together.

Multi-Day Trips

A load occupying several days needs to generate enough revenue to justify the time you could otherwise spend taking additional freight.

Don't Forget Deadhead

The RPM shown on a load is normally based on the loaded distance. Your actual operating distance can be higher if you have to travel to pickup without a paying load.

For example, a $600 load with 300 loaded miles produces $2.00 RPM. If you must drive another 100 miles empty to reach pickup, you are actually driving 400 miles for that $600 before considering any additional repositioning after delivery.

Think about the whole trip

Before accepting freight, consider the distance to pickup, loaded miles, likely repositioning after delivery, fuel, tolls, driver time, and the probability of finding another load at the destination.

A Simple Load Calculation

1Start with the offered rate.
2Check the loaded distance.
3Calculate the loaded RPM.
4Add your deadhead to understand the real driving distance.
5Consider fuel, tolls, operating costs, and driver time.
6Look at the delivery market and your next-load options.
7Decide whether the total trip economics make sense for you.

Example

A $600 load traveling 300 loaded miles produces $2.00 RPM. If pickup requires 100 miles of deadhead, you would travel approximately 400 miles for the $600 load before any additional repositioning. The advertised RPM is useful, but the complete trip gives you the better picture.

A Rate Reference Is Not Your Minimum Rate

Every carrier has different costs and operating goals. Your acceptable rate depends on your vehicle, fuel economy, maintenance, insurance, financing, driver costs, tolls, taxes, desired margin, and how efficiently you can find your next load.

Use market references to understand where an offer sits relative to other freight, then compare that offer against your own operating costs and strategy.

What is the total offered rate?

What is the loaded mileage?

What is the calculated RPM?

How much deadhead is required?

What will fuel and other trip expenses cost?

How long will the complete trip take?

Where will the load leave you?

Is freight commonly available from that destination?

Does the trip fit your vehicle and operating plan?

Does the expected profit justify the time and miles?

The best load is not always the highest RPM

A strong carrier strategy considers revenue, cost, time, deadhead, destination, and the next opportunity together. RPM is one piece of the decision — not the entire decision.

Understanding Load Details

Deadhead & True Trip Economics