Miles and loads

[theoldprof]

Hi guys and gals out there. In a cargo van, approx how many paid miles do you run per year? I have also read you will take about seventy percent of the runs offered. Why are these loads accepted, and why are they turned down. Thanks, theoldprofessor :+

 

[terryandrene]

Prof: Just returned home after a 4100 total mile/ $3500 week. As I mentioned in the past, Rene and I probably return home more than most van operators so our numbers may not reflect the norm. So far this year, we've been available the equivalent of 31.5 weeks out of 39 and we've averaged 1171 miles and $1394 each of those weeks; probably, again, a little lower than the van norm.

We turned down two load offers last week because they came on the heals of over 1100 miles of mostly night driving and we were simply too tired to safely take those runs even though they were OK jobs. When we manage our time properly, we can drive cross country without going into sleep debt; however, when we do a 1000 mile job we tend to physically and mentally prepare for sleep upon completion of the run and aren't always ready for a back-to-back load.

Other reasons for load refusal usually relate to the load compensation offered does not meet the value we have placed on our personal and vehicle's time/use. In other words, it doesn't pay enough.

We might take a short, cheap load in the morn if we can be in a position to get another decent load in the same day. But we might refuse that same load if it was offered late in the day/evening, after sitting for a day or more.

We often refuse a discounted load leaving from home if the load delivery is in a poor load getting area and we would likely deadhead back home, thereby having reduced our profit, if any, by half.

we have turned down good paying load where the deadhead was so great as to make the run less than profitable and, we have taken such long deadhead loads because it put us at a location we wished to be.

The bottom line in load refusals is usually related to the bottom line in you ledger.

Terry

 

[theoldprof]

Thanks, terryandrene. I was a bit surprised when I read you had a four thousand mile week. I though all you two guys did was build pretty vans, attend expos, and monitor this web site. Seriously, if I understand you, it all comes down to EXPERIENCE. Am I right? Several years ago a neighbor's relative driving for Robert's Express said he had taken a short "C" load. He said he didn't make much money, but it paid for his fuel for the whole day. Is this the kind of info that is used for your decision making? Thanks again.

 

[jg]

OldProf..... some food for thought for you....
If I took a load to an area where I knew I'd probably sit a couple of days waiting for a load, I wouldn't sit, I'd ask to be bonused out to a better load area, and if not, I'd just drive empty at my own expense to a better area. I'd rather pay my own fuel and get a load
from the new place, than sit a day or three and earn nothing.
Yes, you are right when you say experience is important. Once you learn the good areas for your company and your size unit (it varies from size to size, so be sure to compare apples to apples and companies to companies), then you will know if you should sit somewhere, and for how long. I usually stayed in an area until about 7pm at the latest. If no loads, and especially if I wasn't near the top of the board, I'd go to another area, arrive in time to get a good night sleep, restore my available hours, and be ready for a long run in the morning. There were some areas where I would drive all night, sleep in the morning, then leave the area right away and go to a better board because I knew that I wouldn't get anything where I was for quite some time.
I probably refused less than 10% of the offers. I did take loads that others wouldn't. For example, some drivers would not go to Buffalo, because no loads back out. I would take the load to Buffalo, get bonused to Cleveland, and get a load out of Cleveland fairly soon. I didn't hang around Buffalo because I agreed that few loads come out.....but I didn't turn down the run TO Buffalo either. You will learn that some areas are great during the week but no place to be stuck on a weekend. I also took runs to far away places, because even though I knew I would have to head back empty to a better board, I was paid bonus miles to do it, and often got a load on the way back, out of the blue. Most companies try to find loads for you when you are in out of the way areas, but don't sit for days waiting for it to happen.....head for a better place. Once you know the good boards and how fast loads move out of that area, you can turn down bad loads because you know you will get another offer soon. But if you turn down a "bad" load out of a bad area, then you may be sitting in that bad area for a long time before you get another offer. All that being said, there are exceptions to everything I said. My suggestion is to take all the loads you are offered until you have enough experience to start making intelligent refusals. You'll make money. After you get the experience, you'll make even more money.

 

[theoldprof]

Thanks, JG. What size unit do you drive, and are you single or a team? Another question I have: How much hold down material is normally used in a cargo van? I read all kinds of info about E Track, but nothing about strap length and quantity, and the other accessories available for use with E Track. Thanks again. :+

 

[terryandrene]

Prof:

Could not agree more with JG. I believe JG is with Tri-State and his modus operandi is the same with us at FDX. Keep in mind that you will have fixed expenses for every day you own the vehicle. Those costs have to be recouped at some pint in time, so you'll occasionally have to chase the freight during slow periods or from poor freight areas. These will be YOUR choices for your reasons and there should never be a reason for you to lose money on a run at the insistance of a dispatch agent.

You would probably be comfortable with a minimun of two load bars and two 18' ratchet or cinch straps. I have three bars and four straps. rarely use more than two and two.

 

[theoldprof]

Thanks, again. You mentioned lose money on a load. What would the scenario be that a driver might lose money on a load. If I would lose money, and the other drivers would lose money, who would take the load? :+

 

[terryandrene]

You mentioned lose money on a load. What
>would the scenario be that a driver might lose money on a
>load. If I would lose money, and the other drivers would
>lose money, who would take the load?

Let's assume your van overhead is $.35 per mile, as is typical, and a run, paying the truck $.80, requires a considerable deadhead to the pickup plus a forecast considerable mile deadhead to the next layover location, you'll lose money on the load.

Example: Deadhead Springfield, MO to pickup a load in St. Louis area = 225 miles. (your overhead = $78.75 and your DH pay = $12.50) Run takes you to Racine, WI. (400 miles for $320) Your overhead for the run = $140. Not much freight from Racine so you DH to a busy area in Chicago. That another 100 miles with a $35 overhead cost.

So, you've earned $332.50, but it cost you $253.75 for a gross profit of $78.75 AND you haven't paid yourself yet. If you avg 60 mph this job will take about 12 hours so you will have earned a tidy $6.56. ($0 for the time you spent waiting for this run)

Chances are you would have taken this run beacuse you had a lengthy wait for the offer. After all, you must cover your fixed expenses.

The good news: You will not have to pay much income tax on this money.

The above example is not intended to be representative of typical expedited runs but is merely a response to your question re: how can you lose $

 

[davekc]

I think Terry gave a pretty good example. There is such a fine line between a company needing to cover a load versus the driver trying to make money. As mentioned earlier, alot of companies rely on refusal rates ect for dispatch. I see time and time again folks who will take any load just to go broke or out of business a year later. I think it is ok to do a favor ect for your carrier to remain in good standings with a customer, but you have to make sure you don't go broke in the process. Lately it has been more concerning as the fuel prices are staying high relavant to freight rates. We recently had to turn down a 1400 mile load to Utah because essentially there is limited freight out there. Deadhead back to MN,IA,or Il takes any profit out of that run. Remember as well that everyday you sit, is revenue that can't be recovered.
"business person first, driver second"
Also should mention that "if you don't haul the freight, someone else will" that should give folks the satisfaction that someone is going broke thus eliminating a competitors truck. Just a matter of time in most instances.
Davekc