Are you running a lane where you are just eking out a profit?
When you have a good headhaul rate, but the backhaul rate is dragging your total revenue down, DAT RateView can make automatic suggestions for TriHaul (trianglular or two-legged) routes that can improve your average rate and total revenue.
For example, let’s say you're an owner-operator based out of Fort Collins, Colorado. Your buddy gets hired on at a company in Cheyenne, WY. He calls you up to let you know that they need trucks to go to Chicago. When you get in touch with their purchasing manager, he tells you the trip to Chicago pays about $1,100.
Your friend is giving you a strong recommendation, and you get a chance to haul a trial load, but it’s not at a premium. You’ve heard Chicago rates coming back are “pretty good” – but is it enough for you to cover your costs of $1.75 per mile for the roundtrip?
A look at DAT RateView shows that you’d just be breaking even.
This is a situation where adding a leg to your trip can make a big difference to your bottom line. For example, adding a trip to Minneapolis from Chicago can take your total revenue for the trip up 30%, adding $1,022 and 17% to your total rate.
But let’s say you don’t want to add the extra mileage to your trip, especially in this situation where it’s possible you might have to add an extra day to your trip.
Even by adding a trip that’s less out of the way to Cedar Rapids, IA, you can add $524 ( 15%) to your total revenue, and boost your overall rate 18%, all while only adding 47 miles to your trip.
DAT RateView offers suggested routes, including TriHaul triangular routing, so you can make more money on every round-trip. Sometimes a short, high-priced leg in the "wrong" direction can position your truck for a stronger rate on the return trip, as is the case when you go from Chicago to Minneapolis instead of a direct route from Chicago to Cheyenne, which adds $1,022 to the round-trip revenue with a modest increase in mileage.
Independent owner-operators can take advantage of RateView by working with brokers who use DAT RateView. Brokers can use automatic TriHaul suggestions and work with owner/operators to help them find the most profitable route back home, which is a win-win for both sides.
Categories: Best Practices and Benchmarks