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Empty and Loaded miles calculation

Calculating loaded and empty miles

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Written by Peter
Updated over 2 months ago

What Are Loaded Miles?

Loaded miles are miles for which the customer is paying. These miles are calculated when orders are created and include all driving done while hauling customer freight. Loaded miles directly impact your revenue since customers pay for these miles.

In 10 Speed TMS, loaded miles include:

  • Pick-up to delivery routes

What Are Empty Miles?

Empty miles are miles when the truck is driving without an attached trailer ("bobtailing") or when the truck is driving with an empty trailer. Usually the customer is not paying for empty miles, though they still represent a cost to your operation.

Empty miles occur when:

  • Moving from one order's final destination to the next order's pickup location

  • Deadheading

Why This Matters

The distinction between empty and loaded miles is important because:

  • Driver Compensation: In some cases, driver's compensation is different for empty versus loaded miles

  • Profitability: One of the main goals for any logistics company is to minimise empty miles, which means better revenue and lower operating costs

  • Environmental Impact: Fewer empty miles means lower CO2 emissions and a smaller carbon footprint

  • Operational Efficiency: Tracking empty miles helps identify opportunities for better route planning and load optimisation


How Miles Are Calculated

The Calculation Method

10 Speed TMS uses a straightforward method to determine empty versus loaded miles:

  1. Loaded miles: Everything within an order (from first pickup to final delivery, including any stops in between)

  2. Empty miles: The distance between the last stop of one order and the first stop of the next order, also additional stops that goes before first pickup or after last delivery in the leg

Important Calculation Notes

⚠️ Important: Empty miles calculations are automatic based on order sequence. Manual route changes may affect mileage accuracy.

  • Empty miles may include both bobtailing (no trailer) and deadhead (empty trailer)

  • Mileage is calculated using the routing engine configured in your system (i.e. PC Miler)

  • The system calculates the most direct route between points

  • If you rearrange orders in dispatch, mileage recalculates automatically

💡 Tip: Minimising the gap between order sequences reduces empty miles and improves profitability.


Where to View Mileage Information

1. Dispatch Screen

You can see both loaded and empty miles directly in the dispatch screen:

Steps:

  1. Navigate to the Dispatch screen (located on the right side navigation)

  2. Select a driver who is delivering a leg

  3. Click on the specific leg you want to review

  4. The details panel will show both empty and loaded miles for that leg

What you'll see: Leg details including loaded miles, empty miles, and total miles for the route segment.


2. Unreleased Orders Screen

You can view loaded miles before orders are finalised:

Steps:

  1. Select Billing from the navigation menu

  2. Click on To release

  3. Look at the Loaded Miles column in the orders list

  4. This shows loaded miles for each order

What you'll see: Loaded miles for orders that haven't been released yet, allowing you to verify calculations before finalising.

3. Unbilled Orders Screen

When reviewing orders for billing, you can access detailed mileage information:

Steps:

  1. Select Billing from the navigation

  2. Click on To bill (opened by default)

  3. Select an order and click to open the details

  4. Navigate to the Mileage Information section

  5. Review both loaded and empty miles with detailed breakdown

What you'll see: Complete mileage details including loaded miles, empty miles, and how they were calculated based on stops.


Real-World Examples

Example: Sequential Orders with Empty Miles

Context: A driver completes deliveries and moves to pick up the next load Scenario:

  • Order #1: Pickup in Boston, deliver to New York City (220 loaded miles)

  • Distance from NYC to next pickup in Philadelphia: 95 miles (empty)

  • Order #2: Pickup in Philadelphia, deliver to Baltimore (100 loaded miles)

Calculation:

  • Order #1 loaded miles: 220

  • Order #2 loaded miles: 100, empty miles 95

Result: For order #2 The driver is compensated for 100 loaded miles and 95 empty miles. The 95 empty miles represent deadhead that reduces overall trip profitability.

💡 Tip: If you could find a pickup closer to NYC (instead of Philadelphia), you'd reduce empty miles and increase efficiency.


Troubleshooting

Empty Miles Seem Incorrect

Symptoms: The empty miles shown don't match the expected distance between order locations Cause: This can happen if:

  • Orders are not in the correct sequence in your dispatch board

  • Route settings or the routing engine is using different parameters

  • Manual route modifications were made

Solution:

  1. Verify the order sequence in your dispatch board

  2. Check that the routing engine settings are correct

  3. Confirm pickup and delivery addresses are accurate

  4. Miles recalculates when leg is started and completed

If this doesn't work: Contact support to review the routing configuration for your account.

Loaded Miles Don't Match Expected Distance

Symptoms: The loaded miles calculation seems too high or too low Cause:

  • Additional stops may have been added to the order

  • Route settings or the routing engine is using different parameters

Solution:

  1. Review all stops in the order to confirm the route

If this doesn't work: The routing engine may be using different parameters. Contact support to review your specific order.

Mileage Not Updating After Route Changes

Symptoms: You've changed the route but mileage still shows old values Cause: The system may not have refreshed the calculation yet Solution:

  1. Save your changes and refresh the page

  2. Navigate away and back to the dispatch screen

  3. If using manual routing, ensure changes are saved

  4. Try logging out and back in to force a refresh


Important Notes

⚠️ Important Considerations:

  • Empty miles calculations are automatic based on order sequence—you don't need to calculate them manually

  • Reducing empty miles is a key performance indicator (KPI) for fleet efficiency

  • Driver compensation formulas may treat empty and loaded miles differently depending on your company's policies

  • The system uses the most efficient route between points based on your routing engine configuration

  • Historical changes to routes won't retroactively change already-settled mileage


Summary

Empty and loaded miles are fundamental metrics in logistics that directly impact your profitability and driver compensation. Loaded miles generate revenue and are what customers pay for, while empty miles are a necessary cost of operations that should be minimised. 10 Speed TMS automatically calculates both types by tracking your order sequences—loaded miles include all stops within an order, and empty miles are the distance between orders.

By regularly monitoring these metrics and optimising your routing to reduce empty miles, you can improve operational efficiency, increase profitability, and reduce your environmental impact. The distinction is also crucial for accurate driver compensation since many companies pay differently for loaded versus empty miles.

Key Takeaways:

  • Loaded miles = customer pays, calculated from order stops

  • Empty miles = distance between orders, typically unpaid by customer

  • View mileage in Dispatch, Unreleased Orders, and Unbilled Orders screens

  • Minimise empty miles for better profitability (aim for <15-20% of total miles)

  • System calculates automatically based on order sequence

  • Contact support for custom compensation rules or calculation issues

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