Per-Mile Rate

A per-mile rate is a freight pricing method in which the transportation cost is calculated by multiplying a specific dollar amount per mile by the total distance of the route from origin to destination. This is the most common pricing structure for full truckload shipments in the United States, providing a straightforward relationship between distance and cost that both shippers and carriers can easily understand and verify.

Typical reefer per-mile rates in the US range from $2.50 to $5.00 or more, depending on the lane, season, market conditions, and specific requirements of the shipment. Short-haul reefer loads under 250 miles often command higher per-mile rates because the carrier incurs the same fixed costs for pickup and delivery regardless of distance, and the revenue must cover these costs over fewer miles. Long-haul loads of 1,500 miles or more may have lower per-mile rates because the fixed costs are spread over more revenue-generating miles.

Mileage Calculation

The per-mile rate is multiplied by the route miles, which can be calculated using different standards. PC Miler is the most widely used mileage calculation tool in the US trucking industry, and most freight contracts specify PC Miler practical route miles as the basis for mileage calculation. Disputes can arise when shippers and carriers use different mileage calculation methods or different versions of PC Miler, so it is important to agree on the mileage standard as part of the rate negotiation.

Per-mile rates are useful for comparing costs across different lanes and distances, but they should not be the only metric used for rate evaluation. Factors such as fuel surcharges, accessorial charges, transit time, service quality, and carrier reliability all affect the true value of a transportation service and should be considered alongside the per-mile rate when making carrier selection decisions.