Cargo Vans vs Straight Trucks

mcclainlogis · May 23, 2008

From your point of view - how are the cargo vans doing recently and also how are the straight trucks fairing in a side to side match with the cargo vans.

Also, with the price of fuel would you suggest anyone to drive a cargo van rather than a straight truck - I have people asking me and I'm not sure what to honestly tell them.

theoldprof · May 23, 2008

Greg. Keep in mind I have been retired for a little over a year now. I drove a GMC cargo van for the big kitty for about two years. Reasons? I traded in my car for a new van. Only about ten grand difference. I could park a van in my drive. Could not even drive a straight truck in my neighborhood. Didn't want to mess with scales and logs. If I wanted to dead head home, the fuel wasn't too expensive. (that was a year ago). The income was less than a straight truck, but the expense was far less. Can't speak for anyone who favors a straight truck.

ericmoss37 · May 23, 2008

The only disadvantage I can see with owning a cargo van is you are limited on what loads you can take. I have heard of actual owner opperators in cargo vans earning $500 a week one week and $3000 a week the next.

CharlesD · May 23, 2008

I can't speak for the smaller vans. I'm running a Sprinter and doing ok lately. Things were somewhat slow over the winter, but the last month has been pretty good.

I know there's more freight in a straight and for that reason I would maybe advise someone to go that route, but for me the advantages of a van are pretty good. I like parking at home when I'm there and I like being able to go anywhere I want to when I'm on the road. We just have one car and the Sprinter, so I like being able to use it for personal use when I'm not working.

dcalien · May 24, 2008

ericmoss37 said:
The only disadvantage I can see with owning a cargo van is you are limited on what loads you can take. I have heard of actual owner opperators in cargo vans earning $500 a week one week and $3000 a week the next.

500 one week and 3000 the next is 7000 per month in a four week month, and 91000 per year with no time off unless you count the 500 weeks as time off.

I would be very satisfied with that for a van. I don't know much about expediting in a van, and nothing about expediting in a straight truck. I definitely do not miss logging, and scale houses and restricted routes.

mcclainlogis · May 24, 2008

I think its a 50-50 split either way. Fuel cost wise, cargo van wins out. Freight wise, straight truck wins out as it will by far get more offers.
But on the other hand, for a single driver, a van would give him longer runs since there is not DOT requirements or restrictions.
To me with todays prices of fuel and DOT restrictions I believe you are basically needing to pick the least of two evils.
Either way, proper management of time can make you a decent living.

OntarioVanMan · May 24, 2008

mcclainlogis said:
I think its a 50-50 split either way. Fuel cost wise, cargo van wins out. Freight wise, straight truck wins out as it will by far get more offers.
But on the other hand, for a single driver, a van would give him longer runs since there is not DOT requirements or restrictions.
To me with todays prices of fuel and DOT restrictions I believe you are basically needing to pick the least of two evils.
Either way, proper management of time can make you a decent living.

Exactly..............

dhalltoyo · May 24, 2008

Straight trucks will roll more often.

If you have hobbies that you can do while on the road, then a cargo van wins out.

As far as longer runs, the top tier carriers will limit the distance you can run. Insurance and litigation issues dictate the policies. Conversely, I had a broker offer me two loads back to back. I calculated the drive time and it would have taken me 22 hours. A top tier carrier will never do that. Moreover, a sharp DOT officer can ask to look at your QC, or a Freight Bill, and determine how many hours you have been behind the wheel. You may not have to log, but there is still a level of regulation based upon safety.

If you have OTR experience, and decent business skills, I'd say go with a straight truck.

x06col · May 24, 2008

Chapy, what are you saying here? You had the opportunity to stay a bit busy, and.... you didn't take either?? And, just what is a top tier company?

greg334 · May 24, 2008

mcclainlogis said:
From your point of view - how are the cargo vans doing recently and also how are the straight trucks fairing in a side to side match with the cargo vans.

Also, with the price of fuel would you suggest anyone to drive a cargo van rather than a straight truck - I have people asking me and I'm not sure what to honestly tell them.

Well it all depends on the company, not which is better over another. There is a point that each has an advantage for each person's life style to a point.

I sit more often than not (like FedEx) because my limitation is a small truck - 16 foot box with 14 feet of space I get loads that are specialized loads; reefer, special handling, special hazmat loads than often than those standard loads (hey if I was with FedEx, those would be all WG loads

).

I feel the opposite would be true with a larger truck, say a 22 or 24 foot box with 20 feet of space and 20k of payload (is there such a thing?) If I had that with the reefer/lg, this truck would always be in demand.

I think if you want to focus on a specific truck, get into tractors and straight trucks for their flexibility. You can do more with a tractor than you can with a straight truck and you can do more with a straight truck than you can with a van.

If you are looking at vans, in the order of what is better to focus on; box vans, sprinters and then plain vans in that order.

mcclainlogis · May 24, 2008

I am grateful for all the input. Please continue.

Being a brand new carrier, I believe it is critical for me to hit the road with some of my owner-operators, this way I will be able to service some of my clients directly.

And after listening to your comments, I believe I will be placing myself in one of my 24-foot straight trucks. It can handle about 17,000 pounds.

Anyone thing this is a bad or good thing - can't see me just sitting in the office just getting started I want to make sure we get off on the right foot - first hand!

dhalltoyo · May 24, 2008

Good idea!

Many of the best officers I served under were those who had come up through the ranks.

I believe it will give you a greater appreciation for the craft.

In the chain of command, my first contact person is a former O/O who had a small fleet of trucks. He is advocate for me.

Drive safe and stay legal.

If you do things right...it will come out right.

DOUGSPLACE · May 24, 2008

CharlesD said:
I can't speak for the smaller vans. I'm running a Sprinter and doing ok lately. Things were somewhat slow over the winter, but the last month has been pretty good.

I know there's more freight in a straight and for that reason I would maybe advise someone to go that route, but for me the advantages of a van are pretty good. I like parking at home when I'm there and I like being able to go anywhere I want to when I'm on the road. We just have one car and the Sprinter, so I like being able to use it for personal use when I'm not working.

Hey CharlesD...
I too have a Sprinter: 2004 2500 SHC with the longest wheelbase. Given today's fuel/maintenance costs, have you figured what it costs per mile to run a Sprinter? What do you feel is the minimum acceptable settlment? Any input along these lines would be much appreciated.

Thanks,
Doug

mcclainlogis · May 25, 2008

We have a sprinter, straight truck and a cargo. With the sprinter the cost per mile is running in the .60-.73 cent per mile range.

The figure is before wages. Does include sprinter payment, insurances, maintenance, phones, food, and the general expenses though.

The cost for our straight truck with payment and the same run down as the sprinter is in the $1.13-$1.23 range.

sullivandave · May 25, 2008

I run 4 cargos out of the boston area with my own rights, After 27 years in ,I had to respond to what my customers needs are, so I just chace that frieght, But you have to look at all of it. I could no longer take some of the drivers. we all have stories of ( that driver) and I will guess that subject is what we all agree on, I am not interested in anything bigger, my vans are gas and blank ( no signs) and it works for me.

CharlesD · May 25, 2008

My cpm right now is running around .50, depending on fuel costs. I include everything except expenses that I would be incurring even if I wasn't driving. I would still have a cell phone and I would still eat, so I don't include those. I know a few folks don't agree with me, but I've been watching my food costs and I'm not spending any more than I would if I was home every day. My rule is that if I would still be spending money on something if I was working a desk job, I don't include that in my cpm. I do include the van payment, insurance, maintenance, fuel, and internet. With that in mind, a cheap load, the absolute lowest rate I would take a load for, is $1.00 a mile. Most of my loads lately have been paying quite a bit higher than that.

Even if I included my phone and food, I doubt that my cpm would reach .60 because I don't spend that much on food. I cook when I'm home and take enough home cooked food with me to last until I get back home.

DOUGSPLACE · May 25, 2008

Thanks Charles and Greg. Both perspectives are real helpful.
Doug

DOUGSPLACE · May 25, 2008

Oh...one more thing, Charles. When you say $1.00 minimum, is that with or without the FSC?
Thanks,
Doug

CharlesD · May 26, 2008

DOUGSPLACE said:
Oh...one more thing, Charles. When you say $1.00 minimum, is that with or without the FSC?
Thanks,
Doug

I should clarify that I am an independent, so the rules are a little different for me. Since a lot of my loads are ones that I bid on, I include what I would want for a FSC in my bid. I don't break it down. When I get to the point of leasing on contractors, I will start breaking down the rate into base and FSC. When dealing directly with a shipper, I will generally break it down as well, but when I reference rates on here, I'm usually talking about the total rate, everything included. I only drop down to $1.00 a mile if I'm in a slow area and there just isn't a lot of freight moving out, or if I've been out a while and looking to get home. I never go that low on a load from a shipper, only brokered loads. The bid loads are so darn competitive that a lot of times I'll get outbid when I'm bidding $1.00, which makes you wonder what those carriers are paying the driver when they're bidding that low.