Why Choose Flat Rate Dispatch Fee and Not % Per Load?

MicrosoftTeams-image (31)

Working out the best freight rates can be challenging. While you should be competitive, you additionally should be profitable. It’s interesting to gauge the organic market, offering competitive rates that bring in cash continually to manage growth and expenses.

Firstly, you must consider the fixed and variable expenses of your business. These are the costs you’ll pay each month, regardless of whether you move any load or not such as insurance, equipment leases or payments, and permitting. You’ll likewise have to factor in your variable expenses, like maintenance and fixes, taxes, payroll, etc. Together, these things assist with deciding your base rate or the sum you want to charge to earn back the original investment.

Suppose your base rate is $1.80 a mile, and anything over that is profit. Need a 20% edge? You’ll have to charge at least $2.16 per mile. Realizing your base rate is significant, yet it’s only one stage all the while.

What are truck cargo rates?

The truck cargo rate is the value a transporter or representative will pay you – as the transporter – to pull a load. It’s straightforward in idea, yet as you probably are aware, rates can change fundamentally, even in a dedicated lane. Having current and exact data about the exact rate of your load and paths is fundamental for estimating and arranging rates appropriately.

How are truck shipping rates determined?

Truck shipping rates are determined on each mile you drive. In the first place, take the distance between the pickup and dropping places. Then divide the total rate by the number of miles between destinations to get your truck shipping rate.

Suppose you are loaded at Atlanta to reach Miami. Depending upon your pickup and drop-off areas, the distance is about 675 miles. Assuming the cargo rate is $3,200, the per-mile cargo rate would be $3,200/675 = 4.74. For this situation, the Rate Per Mile would be $4.74.

Now let’s understand,

How Flat Rate Dispatch Fee is beneficial over % Pay Per Load?

We have made it simple for you!

In flat-rate fee, haul much load, and you will be charged just once at the end of the week for each truck dispatched by us.

In % rate fee, you will be charged on each load hauled throughout the week.

VariablesMiles DrivenAmount EarnedTrip DaysDispatch RatesDispatch Amount in $Profit Earned$ Saved
MetroMax7038$19,5007 Days$225 Flat Rates$225$19,275$750
XYZ Dispatcher7038$19,5007 Days5% on each Load$975$18,5250

Here are the exact numbers straight from our dedicated Dispatch team, contact MetroMax today and be a part of the trucking fortune!

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Leave a Reply