Compare
Spot vs contract freight: compare by all-mile rate and days to cash
Spot rates make headlines. Contract freight makes schedules. For a small fleet the better choice is the one that earns more per mile after the empty miles and arrives sooner. That is arithmetic you can run on two loads.
In short
- Compare all-mile revenue per mile: total revenue ÷ loaded plus empty miles.
- Add days to cash. A higher rate paid 15 days later costs real money.
- Lane repeat cuts deadhead. A contract lane that you run twice a week often has less empty mileage.
- We quote no market rates here. Use rates from your own load list.
A higher posted rate can lose
Contract lane: $2.10 per loaded mile, 500 loaded miles, 50 empty miles to the next load. Spot load: $2.40 per loaded mile, 500 loaded miles, 140 empty miles to get there.
The spot load pays more per loaded mile. After the empty miles, it pays less per mile overall: $1.88 against $1.91. Add a longer wait for payment and the gap widens.
The picture shows both measures for each load. The rates are invented. Your own load list has the numbers that matter.
Compare two loads in five steps
Write both loads down
Revenue, loaded miles, the empty miles to reach pickup and the empty miles after delivery.
Compute all-mile revenue per mile
Revenue ÷ (loaded + empty). Do it for each.
Add days to cash
Contract terms and the broker’s real days to pay from your aging report.
Price the wait
Days to cash × your cost of capital per day. Use your credit line rate or your factoring cost.
Check the repeat
Will the lane repeat next week? A repeat lane lowers future deadhead and planning cost.
Spot and contract side by side
| Point | Spot | Contract |
|---|---|---|
| Rate | Set per load, can move fast | Set for a period, may lag the market |
| Deadhead | Often higher, depends on pickup location | Lower on repeat lanes |
| Payment | Depends on the broker; check your aging report | Terms in the agreement |
| Volume | No promise | May carry a volume expectation |
| Admin | New vetting each time | Setup once, then routine |
| Fit for 5 to 15 trucks | Fills gaps | Anchors base lanes |
Structure only; no market rates or percentages are quoted from a source.
Worked example EXAMPLE VALUES
Invented numbers. Two loads for the same truck.
- Contract: $2.10 × 500 = $1,050. Empty 50 miles. All-mile: $1,050 ÷ 550 = $1.91 per mile. Paid in 30 days.
- Spot: $2.40 × 500 = $1,200. Empty 140 miles. All-mile: $1,200 ÷ 640 = $1.88 per mile. Paid in 45 days.
- Spot pays $150 more in total, but costs 90 more miles. At an invented all-in cost of $1.80 per mile, the extra 90 miles cost $162, so spot nets $12 less before the 15 extra days of waiting.
Two-load comparison to copy
Use your own cost per mile from the cost-per-mile tool.
When the answer changes
The example uses two loads, but the comparison runs across a week. A truck that takes spot loads to fill a gap between two contract loads can come out ahead, because the empty miles are already part of the schedule. A truck that chases spot loads across the map all week usually carries the empty miles on every one.
Questions that decide it for your fleet
- How many empty miles do your spot loads add compared with contract lanes, in your own load list?
- What is the real payment time by broker, spot against contract?
- Does the contract rate move with fuel, and does the surcharge cover your actual fuel? See the fuel surcharge guide.
- Is the lane repeating, so you can plan the return load?
Answer these from last quarter’s data, then set a floor under which you do not take a load, using the minimum rate tool.
What we would check in your audit
- All-mile revenue per mile by lane and by broker over your last 20 loads.
- Empty miles before and after each load.
- Real days to cash by broker, to compare with the rate con terms.
- Which lanes repeat and which were one-offs.
See all-mile revenue per mile by lane for your last 20 loads
Questions
Is contract always better?
No. Contract lanes can lag a rising market. Compare each load by the numbers.
What cost per mile should I use?
Your own. Use the cost per mile tool with your records.
How many loads should be contract?
We have no sourced answer for fleets your size. Look at your own lane repeat and cash needs.
Where do I see current rates?
We quote none. Use your load list and public market reports at your own discretion.
Related: true RPM, deadhead miles, load profit, minimum rate, cost per mile, freight corridors.
See what your last 20 loads show.
One short form. We reply by email with the next step, and a one-page report follows. Free, no obligation.
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