Reefer
- Thread starter jrgibbs1
- Start date
moose
Veteran Expediter
You will be better off asking your own company .
some carriers can feed a reefer unit well .
with some you will limit your load opportunity , increase spending and price yourself out of the market .
especially at a class 7 or less unit .
Can't see how a solo can make it worth the hassle .
with the new C.A CARB Crap , many units out there will not be in compliance for long.
Buy less , Spend less , drive less , keep more !
same goe's for L/G.
some carriers can feed a reefer unit well .
with some you will limit your load opportunity , increase spending and price yourself out of the market .
especially at a class 7 or less unit .
Can't see how a solo can make it worth the hassle .
with the new C.A CARB Crap , many units out there will not be in compliance for long.
Buy less , Spend less , drive less , keep more !
same goe's for L/G.
Our reefer keeps us working, BUT, we got ours cheap, a repo. It is a question that has NEVER had a good answer. I do feel that reefer and security work are the WAY that expediting is headed. Just my opinion.
There is NO easy answer to this question. You can ask it EVERY day and get a zillion different answers each day. I have NO idea where this business is going. I almost think that an entire new pay system has to come along soon. Many shippers need special handling. Many kinds of cargo need temp control. The Government REQUIRES temp control on certain shipment. The trucks that meet the requirements cost MORE than shippers, including the government, are willing to pay to ship this stuff. It makes NO sense. Not that is has too, nothing else does these days.
Humble2drive
Expert Expediter
That is a Carrier specific question.
We drive for FECC and we refer to our reefer as our money tree if that is any indication.
WHAT? 
Things get political in here?
Things get political in here? 
greg334
Veteran Expediter
Realistically speaking, it does depend on the carrier but it also depends on how you set everything up and where you are in the food chain.
A C unit, most likely will tie you to FedEx, Panther may be able to use you but outside of that you are competing with vans and box trucks and there are box reefer trucks out there that run cheap.
A D unit is more versatile and remains the best bet in these hard times as a Straight truck.
An E unit is actually the best on of all, they can haul a lot more than the rest.
But also for every one successful reefer unit out there, there seems to be 6 unsuccessful ones. What I mean by unsuccessful is the utilization of the equipment verses the PM and repairs. The unit regardless has to be maintained and that costs money whether you use it or not. If you use it ever 15th run, then that is slim, and may not be useful for you.
I had to replace one thing, an injector pump two years ago and it cost me $1200 with my carrier discount.
I actually think a better fit is a dry box with a liftgate and all the other stuff to go with it.
A C unit, most likely will tie you to FedEx, Panther may be able to use you but outside of that you are competing with vans and box trucks and there are box reefer trucks out there that run cheap.
A D unit is more versatile and remains the best bet in these hard times as a Straight truck.
An E unit is actually the best on of all, they can haul a lot more than the rest.
But also for every one successful reefer unit out there, there seems to be 6 unsuccessful ones. What I mean by unsuccessful is the utilization of the equipment verses the PM and repairs. The unit regardless has to be maintained and that costs money whether you use it or not. If you use it ever 15th run, then that is slim, and may not be useful for you.
I had to replace one thing, an injector pump two years ago and it cost me $1200 with my carrier discount.
I actually think a better fit is a dry box with a liftgate and all the other stuff to go with it.
I would have to say it depends on the company. Fedex Custom Critical was great for our refer units. Panther is trying to get more into that kind of business. But our refer hasn't ran that much this year as of yet. I hope things get better now that we have a good team in that truck.
Given the lucrative experience we have had driving reefer-equiped trucks for six years (with a couple dry box trucks also in that time), we would not hesitate to purchase a reefer-equipped truck again, even in these recessionary times. Our reefer has made us eligible for loads that enabled us to buy a great truck and quickly pay it off, and put money in the bank too.
That said, we would not buy a reefer truck if we did not run with FedEx Custom Critical or could not find a carrier that had as much reefer freight as FDCC can offer.
Also note that a reefer is best seen as part of a total truck package, not as a single component that will produce a unique set of additional revenue that you would otherwise not have.
Our total truck package includes our driver credentials, lift gate, freight handling equipment, reefer, team operation and more (including a willingness to go where many drivers are not). Some loads are dry only. Others need a lift gate. Some are reefer loads requiring a lift gate and HAZMAT credentials, etc.
I have tried to quantify the truck revenue that is attributable to the reefer but have been unable to do so. Sure, each reefer load pays more than a comperable dry load but there is much more to it than that. The reefer gets us relocated better than a dry box will. How do you quantify that? Reefer costs are higher, but we are getting high paying reefer loads now when we might otherwise sit. How do you quantify that?
Because a reefer is part of a reefer/truck/driver package, I don't know of an easy way to compare a dry truck to a reefer regarding net results and profitability. I do know that running our reefer truck has been a successful and profitable (net after all expenses and taxes) endeavor, with our carrier of choice.
That said, we would not buy a reefer truck if we did not run with FedEx Custom Critical or could not find a carrier that had as much reefer freight as FDCC can offer.
Also note that a reefer is best seen as part of a total truck package, not as a single component that will produce a unique set of additional revenue that you would otherwise not have.
Our total truck package includes our driver credentials, lift gate, freight handling equipment, reefer, team operation and more (including a willingness to go where many drivers are not). Some loads are dry only. Others need a lift gate. Some are reefer loads requiring a lift gate and HAZMAT credentials, etc.
I have tried to quantify the truck revenue that is attributable to the reefer but have been unable to do so. Sure, each reefer load pays more than a comperable dry load but there is much more to it than that. The reefer gets us relocated better than a dry box will. How do you quantify that? Reefer costs are higher, but we are getting high paying reefer loads now when we might otherwise sit. How do you quantify that?
Because a reefer is part of a reefer/truck/driver package, I don't know of an easy way to compare a dry truck to a reefer regarding net results and profitability. I do know that running our reefer truck has been a successful and profitable (net after all expenses and taxes) endeavor, with our carrier of choice.
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The reefer debate still goes on. I would have to agree with Greg on this one. I don't think things have changed that much except for the new carb laws. That might effect the purchase of a used unit because it will soon have a limited function without a costly upgrade. When we had them, many of the runs were west coast loads. Some of it of course depends on the carrier, but if looking at Fedex, they or did have a waiting list for their white glove division. Kind of a sign that it isn't growing. Same with lift gates. When we had them, we used them a couple of times a year. More of a boat anchor or back porch than anything. But, some carriers utilize them a little better than maybe Panther does.
From a fleet owner perspective, we have found that they didn't justify the cost based on usage, maintenance costs, extra weight/fuel mileage increase, and the liability of drivers that get injured using them.
The biggest issue is at what rates and frequency one does these loads. If you are spending 50 to 100 percent more for the vehicle, one would have to have that difference in the rate.
Not currently seeing that with any carrier. The other place is frequency. We are running steady enough that there wouldn't be a lot of additional places to add a load. It would only replace a existing one.
Again, that is our situation, but someone else's might be different.
From a fleet owner perspective, we have found that they didn't justify the cost based on usage, maintenance costs, extra weight/fuel mileage increase, and the liability of drivers that get injured using them.
The biggest issue is at what rates and frequency one does these loads. If you are spending 50 to 100 percent more for the vehicle, one would have to have that difference in the rate.
Not currently seeing that with any carrier. The other place is frequency. We are running steady enough that there wouldn't be a lot of additional places to add a load. It would only replace a existing one.
Again, that is our situation, but someone else's might be different.
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greg334
Veteran Expediter
OK I am assuming that you are with or planning on being with FedEx.
I don't think you will ever see a 100% increase in the rates consistent enough with a reefer unless you are looking for your own loads.
The single most problematic issue is the carrier using your equipment enough to justify the added cost and the answer is no. That's because you can't justify it with any carrier in today's market.
No matter how "lucrative" it may be for one, it isn't for many who made the investment. A lot of people who are in this game already have estalbished themselves within the company and have a leg up so it makes sense that they would say "sure the waters fine, come on in".
The other thing I have to point out is that T-Val or Temperature Validation is (was) a sales talking point to make it look like that there was an extra step done to ensure the customer's requirements were met (mostly Pharma loads under GMP standards) and seems to be reserved for FedEx White Glove and Supply Chain trucks. With the dwindling amount of Pharma work and the fact that other carriers are now into this freight, FedEx has taken the approach to use the sales pitch in other industries and has been somewhat successful.
When I was there they would not accept my Temperature Validation test results but they did require me to have a full inspection done to the Reefer unit and that did include Carrier's validation and calibration work which was better than the Temperature Validation test FedEx had at the time.
When we spent a small fortune on our truck, we did not focus on what the truck costs. We focused on what it pays. The truck has financially paid for itself, thereby justifying its cost. The creature comforts pay for themselves, not in additional revenue but in the quality of life we enjoy on the road.
Prospective truck buyers should note that if you use your truck to run home every time you feel like it or if you fail to see and use your truck as the business asset it is, it does not matter what kind of truck you buy, it will cost far more than it pays.
I need to elaborate on something I said above. I said we would not hesitate to purchase a reefer truck, even in these slow times. That is true for us today, given that we are already in the business and contracted with our carrier of choice.
But if we were looking at expediting for the first time and thinking about jumping into the business, we would hesitate to get into the business at all. The expedite world is different in 2009 than it was in 2003 when we jumped in. If we held the jobs today that we held then, we would likely continue to hold those jobs until the prospects for profitable expediting pick up.
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