Differences In CPM Pay

Topic 23601 | Page 1

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Mike H.'s Comment
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What are the differences in CPM pay between practical miles,dispatch miles,and HHG(what does HHG stand for)?

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

Big Scott's Comment
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Don't worry about it. It's all about how many miles you can drive in a week. This gets better with time and experience. HHG is generally household miles.

Mike H.'s Comment
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Don't worry about it. It's all about how many miles you can drive in a week. This gets better with time and experience. HHG is generally household miles.

Big Scott,I'm not worried,I just want to know what the different terminology means

G-Town's Comment
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Household Goods mileage, aka HHG is based on the shortest distance, safest (where trucks are allowed to safely travel) route that is possible and permissible. Not necessarily the shortest in terms of time though, specifically true around large cities. HHG is the mileage trucking companies use when rates are negotiated and contracted with customers.

Practical miles may or may not be the same as HHG. Practical mileage takes driving time, speed limits and other factors along the route into consideration. Operative word is “practical”. This is the rate used for calculating a carrier’s fuel tax and provides a significant level of input on how dispatch mileage is derived.

Dispatch miles is the mileage a driver is paid on. Dispatch miles can be based on practical miles or what’s known as zip-code to zip-code mileage. If zip code mileage is used, sometimes this is in a drivers favor, sometimes not.

G-Town's Comment
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And just to be clear...although I gave a technical description, in the grand scheme of your career, this is under the column of nice to know, but has no significant relevance to the job.

I agree with Big Scott...not something you need to worry about.

Patrick C.'s Comment
member avatar

Just to clarify HHG is zip code to zip code. Practical miles usually goes along major routes only. Once you get off onto the side streets going to your shipper/consignee then that doesn't count. Even if you have to drive around "in town" for 5 miles.

Consignee:

The customer the freight is being delivered to. Also referred to as "the receiver". The shipper is the customer that is shipping the goods, the consignee is the customer receiving the goods.

Shipper:

The customer who is shipping the freight. This is where the driver will pick up a load and then deliver it to the receiver or consignee.

Mike H.'s Comment
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Thanks G-town,I just wanted to know what the terms meant

Old School's Comment
member avatar

One additional piece of information to G-Towns informative description is that dispatch miles can occasionally be an amount of miles that the company has negotiated with a particular customer. It's generally better for the trucking company to charge a customer for less miles than it is to cut their rate. The reasoning is that later on they can raise the mileage and maintain the rate without the customer pushing back.

People tend to resist rate hikes more vehemently than they will when just hearing, "We haven't been charging you for all the miles we drive for the last nine months. It's only a minor adjustment, but we have to get paid the proper miles from now on so we don't have to raise our rates." It's a simple strategy used when a carrier realizes rates are heading upward anyway. They get to increase their rates again as soon as that customer starts accepting the idea that higher rates are going to be unavoidable. It also helps them seal the deal at times when trying to get a really good customer on board.

I know this because I had to question my company about a certain run I was doing that seemed like the miles were questionable. Sure enough, as time went by, the mileage amount allowed on that load increased just like they said it would.

Nobody ever gets paid the full, or actual amount of miles they drive. Mileage amounts can be a contractual agreement between the carrier and the customer. The driver accepts those amounts. None of that really has any effect on your results. You can still get really good paychecks. The difference in pay for a driver on "HHG miles" as compared to one on "practical miles" is negligible - not worth quibbling over or using as a basis for choosing a company.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

G-Town's Comment
member avatar

Thanks G-town,I just wanted to know what the terms meant

HHG like Patrick said, is also referred to as zip code miles.

Patrick I am paid on dispatch miles...most of the time it’s true zip-code, sometimes there is a deviation based on safety, best route to a store and/or known traffic congestion.

For instance, there is a stretch of road that is under heavy construction right now. The dispatch route bypasses this construction, adds additional mileage (about 20) that we are paid on.

Patrick C.'s Comment
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I get paid by practical mile. The only reason I already knew about HHG is that how the military figures out your paid mileage when you do a "DITY" (Do IT Yourself) move.

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