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The Green-Yellow-Red System for Load Decisions

How to make instant go/no-go decisions on loads without second-guessing yourself.

Mike Henderson

The Complete Guide to Trucking Cost Management

Decision fatigue is real. When you're evaluating dozens of loads per day, you need a system that gives you instant clarity.

The Traffic Light System

Green: Book It

The load covers ALL your costs (fixed + variable) plus your target profit margin. No hesitation needed.

Action: Accept immediately. This is what you're looking for.

Yellow: Proceed With Caution

The load covers your variable costs (fuel, per-mile expenses) but doesn't fully cover fixed costs or provide profit. It's better than sitting empty, but not ideal.

Action: Accept if:

  • You'd otherwise be sitting with no load
  • It positions you for a better load tomorrow
  • You're in a slow market and need cash flow

Decline if:

  • You have other options that are green
  • You're consistently seeing yellows (your costs may be too high)

Red: Pass Immediately

The load doesn't even cover your variable costs. You're literally paying to haul this freight.

Action: Never accept. No exceptions. Sitting is cheaper than running red loads.

Why This System Works

Speed

You can evaluate a load in under 5 seconds. Green? Accept. Red? Decline. Yellow? Quick strategic decision.

Objectivity

No more gut feelings or "this feels like a good rate." The math doesn't lie.

Consistency

Every load is evaluated the same way. No emotional decisions when you're tired or desperate.

Learning

Over time, you'll start to recognize patterns. Certain lanes are always green. Certain brokers are always red.

Setting Your Thresholds

Your green/yellow/red boundaries depend on your specific costs:

  1. Calculate your true cost per mile (see our cost-per-mile article)
  2. Set your target profit margin (typically 15-25%)
  3. Green threshold = Cost per mile + profit margin
  4. Yellow threshold = Variable costs only
  5. Red threshold = Below variable costs

Real Example

If your costs are:

  • Variable costs: $0.80/mile (fuel + per-mile wear)
  • Total costs: $1.60/mile
  • Target profit: $0.30/mile

Then:

  • Green: $1.90/mile or higher
  • Yellow: $0.80-$1.89/mile
  • Red: Below $0.80/mile

HaulProfit calculates these thresholds automatically based on your truck's specific costs. But even doing it manually, the traffic light system transforms how you evaluate loads.