Compliant (Legal) vs. Non-Compliant (Illegal) Carrier — Cost Per Mile Model
Adjust inputs to model the non-compliant cost advantage illegal carriers externalize on the market
⚙ Model Inputs
Fleet Size (trucks)
10
Miles / Truck / Week
?
HOS Legal Maximum
A fully HOS-compliant carrier averages ~2,100 mi/truck/week. Non-compliant operators running falsified logs or ignoring Hours-of-Service rules can push 3,000–4,000+ mi/week — a structural productivity advantage on top of the cost gap.
3,500
Driver Wage (W2) $/mi
$0.69
Fuel $/mi
$0.51
Equipment $/mi
$0.32
Payroll Tax Rate
11.5%
Driver Inc. Wage Gap $/mi
?
Driver Inc. Wage Gap
The wage discount a misclassified "owner-operator" accepts vs. a true W2 employee. Under Driver Inc. arrangements, the carrier avoids source deductions and shifts truck costs (fuel, maintenance, insurance) onto the driver. The driver accepts a lower effective wage believing they run their own business, despite being economically dependent on one carrier. Source: CTA, 2025. Range: $0.08–$0.20/mi.
$0.13
✓ Compliant Carrier (Van, Avg LOH)
Total CPM
—
Van carrier, avg LOH (FreightMath)
✕ Non-Compliant — Avoided Costs
Total Avoided
—
Non-compliant CPM: —
Non-Compliant Cost-Per-Mile Advantage
—
—
Annual Fleet Advantage
—
at current fleet & miles
Per Truck / Year
—
annual unfair advantage per unit
Weekly Fleet Advantage
—
weekly cost gap, fleet-wide