A lot of new dispatchers book loads without understanding how deadhead changes the real profitability. Deadhead doesn’t sound like a big deal, but it can completely change whether the load is worth running as it can really change the rpm for the load.
Here’s the simple breakdown:
Deadhead (DH) - Deadhead is empty miles the truck has to drive before picking up a load.
It may seem like no big deal, but it can lead to --> No pay. Still costs fuel. Still adds wear and tear.
Even 40–70 deadhead miles can ruin a “good paying” load.
All-In Rate - This is the total money the load pays from the broker.
(Line haul + Fuel Surcharge = All-In Rate)
When dispatchers say “What’s your all-in?” They mean “What’s the total amount my carrier gets paid?”
True RPM
This is the part most dispatchers skip.
RPM = Rate Per Mile for loaded miles only.True RPM = All-In Rate ÷ (Loaded Miles + Deadhead Miles)
This tells you the actual money per mile when you include the empty miles.
The Following is an Example of the role Deadhead Miles Play
Broker pays:
- $1,800 total (all-in)Miles:
- 900 loaded
- 100 deadhead
1️⃣ Normal RPM (what most beginners calculate):
$1,800 ÷ 900 = $2.00/mile
Looks good, right?
2️⃣ True RPM (what real dispatchers calculate):
$1,800 ÷ (900 + 100)$1,800 ÷ 1,000 = $1.80/mile
Now the load doesn’t look as strong.
Why it matters:
A load that looks like $2.00/mile might actually be $1.70–$1.80/mile once you include deadhead.
Why this helps you as a dispatcher
When you calculate True RPM:
- You avoid traps like long deadhead
- You negotiate smarter
- You stop sending trucks into negative-profit lanes
- Carriers trust you more because you’re protecting their bottom line
Smart dispatchers don’t just find “good paying” loads — they calculate what those loads are really worth.