Practical miles vs. household goods miles
Why the same cents-per-mile rate can pay differently.
When a job pays by the mile, the question is which miles.
Practical miles
Practical miles follow the route a truck would realistically drive, using major highways. They are closer to the miles on your odometer.
Household goods (HHG) miles
HHG miles use a shorter, more direct calculation. The same trip usually shows fewer HHG miles than practical miles, so the same rate per mile pays less.
Why it matters
If one carrier pays a slightly higher rate on HHG miles and another pays a slightly lower rate on practical miles, the second can pay the same or more for the same trip.
What to ask
- Which mileage system do you use?
- Are empty (deadhead) miles paid, and at what rate?
- Are out-of-route miles paid?
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