Hot shot trucking is all about quick deliveries and specialized equipment. Hot shot requests come from a client under a deadline. They need expedited shipping, often for complex or sensitive materials. While these customers may be your most demanding, they’re also likely to be among your most lucrative. Due to the constraints naturally tied to this method of trucking, you can profit more from hot shot loads than any other transport.

While hot shot trucking is a simple concept to understand, the challenge is determining how to set prices that are both fair to your customer and profitable enough for you to run this venture long-term. At Porter Freight Funding, we’ve assisted businesses like yours in considering all factors in their hot shot load pricing formula and we’ve gathered our best tips so you can do the same.

How Are Hotshot Rates Calculated?

As hot shot deliveries typically require your most expedient services, they’re often the most lucrative type of trucking you can complete. When a potential client asks for a quote, they expect a flat rate, which you can further break down into a per-mile calculation to ensure it’s meeting your financial needs.

Once they’ve considered what they can afford to charge, many hot shot trucking services create a load pricing sheet to easily determine rates based on conditions like load size and travel distance. Then, when someone contacts you to inquire about your rates, you can respond with the urgency they need to take on the job.

To get started, you’ll need to input the following variables:

1. Load Value: The monetary value of the freight you carry.
2. Distance: The total distance, in miles, required to deliver the load from origin to destination.
3. Average MPG (Miles Per Gallon): Your fleet’s average fuel consumption for the journey.
4. Average Price per gallon: The average cost of diesel per gallon.

How Much Do Hotshot Loads Pay Per Mile?

While there are many variables that affect the hot shot trucking pay per mile, rates run around $1.50 per mile on average. The largest and most urgent loads can drive prices up to $2 per mile, while your basic and partial loads might be closer to $1.

Ultimately, even if you have a rate sheet, these prices will likely be an ongoing negotiation between you and your client. Some businesses may be willing to pay much more, especially if their order is particularly complicated. However, if you have nearby competition offering better hot shot rates, potential clients may decide to shop around and go with another supplier. In this case, finding the balance between reasonable rates and agreeable profits is crucial.

Considerations Before Setting a Hot Shot Rate

As you plan your base-level hot shot trucking rates, there are many factors to consider. While there may be other miscellaneous expenses added to prices on an as-needed basis — like emergency maintenance, breakdowns and similar unexpected costs — these topics will definitely need to factor into your equations.

Expenses

Perhaps the most important thing to keep in mind as you set your hot shot rate is the expenses you’ll have to put forth before you can make a profit. Knowing these costs before setting your rate will ensure you do more than break even on your jobs. Consider what you spend to maintain:

• Truck upkeep: What does it cost to keep your truck on the road? Are there monthly payments? Do you get it serviced regularly? How much is the insurance payment? All these costs should be factored into your rates so that you don’t absorb them through your profits.
• Employee salary: Whether you’re running your trucks solo or you have a business, you need to pay your trucker for their time. Consider what you think is a fair price, whether hourly or salaried, and use that number in your equation.
• Fuel costs: Fuel costs can vary every day, so consider what the average price of fuel was within the last year as your starting point and adjust your rates when major fluctuations come about in the market.

Geography

Your location and the roads you’ll have to travel should affect your rates. Before you set out on your next hot shot job, look over the terrain you’ll be driving through. Is it all highways or back roads not designed for large trucks? Are there steep inclines along the way that will affect your fuel efficiency? Will there be tolls? Are you staying intrastate or crossing state or country borders?

The answers to these questions will influence how much you have to spend to make the trip, so it should also influence how much financial support your client provides.

Load Type

While distance and transport time are two of the main things businesses consider for hot shot load pricing, you should also think about a sliding price scale based on the load type you’ll be hauling. Transporting specialized loads like HAZMAT materials or oversize loads may cost you more in time or safety precautions, so you should charge higher rates for them than your average hot shot load.

Depending on the load type, you may have to use some of the more durable trucks in your fleets with more wheels and heavier load bearings. If that’s the case and you end up upgrading your truck for a job, make sure you also factor in the new truck’s costs.

Urgency

While all hot shot jobs carry some level of urgency, some have shorter deadlines than others. If your client needs you to travel all night to deliver their supplies within a day, that’s a larger strain on your resources than two-day shipping — your final prices should reflect that.

Learn More About Hot Shot Trucking Rates With Porter

Hot shot trucking rates can change the trajectory of your business when handled well. We’ve given you a lot to consider in this article, and putting this knowledge into practice will allow your hot shot load prices to better reflect the circumstances of the job and how much effort your team gives to deliver industry-leading results.

Start growing with Porter Freight Funding today by contacting our team and getting your hot shot questions answered. Our solutions span the most pressing topics in the trucking industry, like securing insurance and maintaining compliance. Whatever you do with your trucks and however you need assistance, we’ll be there to help you find success and expand your business. Contact us today at 205.397.0934.