Reducing Empty Miles for Shippers and Carriers
Melton Logistics – 06/26/2024
In the world of freight and transportation, one phrase continues to echo as a significant inefficiency: empty miles. Also known as “deadhead miles,” these are the miles a truck travels without a load, usually after delivering goods and returning to a base or heading to a new pickup. They represent a missed opportunity, a cost burden, and an environmental concern all in one.
As the logistics landscape becomes more competitive and environmentally conscious, reducing empty miles has emerged as both a necessity and a strategic advantage. For shippers and carriers alike, knowing how to reduce empty miles isn’t just about better planning—it’s about achieving measurable logistics cost savings, improving carrier relationships, and boosting overall supply chain efficiency.
Understanding the Cost of Empty Miles
According to the American Transportation Research Institute, nearly 20% to 30% of truck miles are driven empty. That means for every five trucks on the road, at least one is running without generating revenue. For carriers, this means higher operating costs without compensation. For shippers, it translates into rate inflation, reduced service availability, and less predictable capacity.
Empty miles are a silent profit drain. They eat into margins, increase wear and tear on equipment, consume fuel unnecessarily, and contribute to carbon emissions. By prioritizing how to reduce empty miles in transportation planning, businesses can directly support sustainability goals while realizing meaningful logistics cost savings.
Why Shippers Play a Critical Role
Traditionally, empty miles have been seen as the carrier’s problem. However, modern logistics requires a more collaborative approach. Shippers now have the tools, data, and incentive to help carriers stay loaded—and in turn, secure more consistent service and competitive rates.
Here’s how shippers can take the lead and make their freight more efficient:
1. Enable Backhaul Opportunities Through Collaborative Planning
One of the most effective ways to reduce empty miles is to create or identify backhaul opportunities. A backhaul is the return trip of a truck that can be utilized by loading it with a new shipment. Shippers who have consistent freight lanes or are part of larger networks can coordinate with carriers to align deliveries with pickup opportunities nearby.
For instance, if a carrier delivers a load to Dallas, and another shipper nearby needs a shipment picked up heading to the carrier’s home base, that match reduces empty miles and benefits both parties. Collaborative freight planning and load matching are crucial to unlocking these synergies.
2. Leverage Digital Freight Matching Platforms
Technology is a game changer in reducing empty miles. Digital freight matching platforms connect shippers with carriers who have available capacity in real-time. These platforms use algorithms and real-time data to optimize load assignments based on location, direction, and availability.
Shippers that integrate with these systems can ensure their freight gets covered faster while helping carriers reduce their deadhead miles. The result? Faster delivery windows, more stable pricing, and shared logistics cost savings.
3. Utilize Drop-and-Hook and Trailer Pools
Drop-and-hook freight, where a driver drops off a loaded trailer and picks up another one without waiting, provides flexibility in timing and equipment usage. Shippers who maintain trailer pools at strategic facilities give carriers the option to schedule their routes more effectively, minimizing delays and empty trips.
This operational model allows carriers to plan continuous moves and increase asset utilization. By keeping trailers moving with freight rather than sitting idle, shippers help carriers increase revenue-generating miles and reduce unnecessary repositioning.
4. Share Forecasts and Volume Data
Transparency is key to efficiency. Sharing load forecasts, demand spikes, or seasonal trends with carrier partners helps them plan more efficiently. When carriers know what’s coming down the pipeline, they can prepare to coordinate backhauls and load matches more effectively.
Many large shippers have access to predictive analytics and TMS data that can be shared securely. Providing this visibility not only strengthens shipper-carrier relationships but directly contributes to reducing empty miles over time.
5. Diversify Modal Mix and Use Intermodal Strategically
Sometimes, reducing empty miles is about knowing when to use alternative modes. Intermodal shipping, for instance, allows shippers to combine trucking with rail or ocean freight for longer hauls. While it doesn’t eliminate empty miles entirely, it reduces dependency on full truckload availability and lowers the number of truck-only legs in a supply chain.
By incorporating intermodal options and matching freight to the most efficient mode, shippers can reduce both cost and carbon emissions.
6. Reward Carriers Who Reduce Empty Miles
Incentives matter. Some progressive shippers offer bonus programs or preferred status to carriers that consistently reduce empty miles while maintaining service standards. These programs reinforce a shared commitment to efficiency and sustainability.
Reward structures may include priority loading, lane exclusivity, or faster payment cycles. The goal is to build long-term relationships that mutually benefit both shipper and carrier by keeping trucks moving with freight.
Measuring Success
Reducing empty miles isn’t a one-time fix—it’s an ongoing strategy. Shippers should work with their logistics partners to define KPIs such as:
- Percentage of empty miles vs. loaded miles
- Freight consolidation success rates
- Load-to-truck ratio improvements
- Sustainability impact (CO2 reduction)
With the right data and consistent communication, these KPIs can guide continuous improvement across the supply chain.
In a supply chain environment increasingly driven by cost control, capacity constraints, and environmental responsibility, reducing empty miles is no longer optional—it’s essential. By understanding how to reduce empty miles through strategic planning, technology integration, and strong carrier partnerships, shippers can unlock significant logistics cost savings.
More importantly, reducing empty miles is a win-win. Carriers improve profitability. Shippers gain reliability and control. And the industry as a whole becomes more sustainable and resilient.
If you’re ready to optimize your freight strategy and cut down on empty miles, Melton Logistics is here to help. Visit our full-service shipping page to explore how we can partner with your business to improve efficiency and reduce costs across the board.