Slow Cargo Van Freight Toledo-Detroit

[tedpass]

Re: Slow Cargo Van Freight

I spoke with a couple owners and they say that van freight is very slow. I thought by now it would pick up.Talked with some drivers and they are sitting 4-6 days.Hard to deadhead with gas over 4 bucks a gallon.

Cargo freight by van doesn't have to be slow, but it essentially comes down to what you want to transport and how quickly. Van freight might not be your best bet all the time, but sometimes it's a good idea to use it.

 

[highway star]

Re: Slow Cargo Van Freight

Cargo freight by van doesn't have to be slow, but it essentially comes down to what you want to transport and how quickly. Van freight might not be your best bet all the time, but sometimes it's a good idea to use it.

Well....... There ya have it folks!!!

 

[aquitted]

Took A month off I have been back 2 weeks last week was good this week 1 run 150 miles. This is the first bad week since I started in May.

 

[blizzard2014]

I would have to agree with you. Some people are under a false illusion that vans are taking all the straight truck loads.
Sorry, but just not seeing it. If one looks at a few expedite boards that will likely confirm the findings.
Much of the low van rates that Charles mentions is in fact going on straights. You throw a handful of those cheap van loads on a straight and you can move with a pretty respectable rate.
I've been known to go to the well myself on occasion.
"Double dipping" has been going on for awhile. The more freight slows, the more of it you are going to see.

The low rates on the load boards have to do with how you set up your Tariff rates. When I worked with one friend who has low Tariff rates we could never get cargo van loads for over a buck a mile. Now I am on that same board and getting Nissan loads for 1.15 a mile carrier rate. I am getting 650 mile runs for 800 bucks a pop all day. It all depends on how you set up your pricing. If you start out as a cheap carrier they will always expect you to run loads for cheaper Tariff rates.

 

[blizzard2014]

Van freight is just plain slow right now, and there are probably a few different reasons for it. I think more freight is getting consolidated onto larger trucks for one, by design or by carriers who are treating cargo van freight like LTL and running it too cheap for exclusive use. I think more of that is going on that any of them are going to admit. At least I can't think of another reason for the rates some people are running them for right now.

I know that expediting in a van can be a blast. I did it in a Sprinter for a while and had a ball. I love being able to park wherever I wanted and run around wherever I wanted to go when I was off duty, but I wonder if those days will ever be back. It might be time for the people who want to make any kind of a living in this business to rethink the kind of vehicle they're running in. If freight was good for all vehicle types, I'd take the van in a heartbeat because of the freedom, but right now that freedom doesn't exactly pay the bills.

Yeah it is slow for cargo van loads but you can sure as heck make decent amount of money if you look for customers in other areas of the economy. Let the big boys fight over the automotive freight and go after the nooks and crannys for untapped shippers. My new business partner Preacher Rich just landed us a customer out of Florida that ships body parts about 5 loads a month and after all is said and done we are making upwards of 5k in net profits per months off of five cargo van runs. You can find money in this business if you are hungry for it.

I can't compete with the bigger companies for the "automotive freight" but I will still book automotive freight to keep my drivers busy while seeking freight opportunities from untapped resources. The load baords require constant attention and supervision leaving a lot of carriers stuck in the automotive box. I have been shunned some "been talking to one large load board about seing Chrysler loads for a year now to no avail" so I will go out and create my own customer base and work my way back into the automotive market on a later date in time.

 

[blizzard2014]

I have a slight revision to make because some driver is going to jump on my post and cirtique every little detail. I am getting upwards of 1.23 a mile for Nissan cargo van loads and much higher for sprinter and small straight truck loads. There is still some money in automotive if you are set up the right way. It is all in how you set your rates and the service that you give your customers.

I have worked a full week and now i'm pulling an 18 hour shift making sure we are getting all of our check calls updated on time. We have over ten loads out this weekend. That might not sound like a lot to most people but it is quite a big deal for an up and coming company! So here I sit like Mr Elliott up late at night waching all of my little dots on the road anticipating their every move. I can see how it is hard not to wonder how your company is doing even when you are supposed to be taking a day off. It is almost like an addiction.

 

[OntarioVanMan]

So Charles, Blizzard....with those kinds of tariffs....are your CV's getting the $1.00 a mile?

 

[blizzard2014]

My vans get 80 percent of whatever I bill the customer. That would be 96 CPM on 1.20 per mile.

 

[OntarioVanMan]

My vans get 80 percent of whatever I bill the customer. That would be 96 CPM on 1.20 per mile.

Is that all in?....I presume?.....

 

[hazmat]

Is that all in?....I presume?.....

Hey OVM,

I'll answer for Blizzard, since I'm one of there IC's... Yes what he is quoting would be all in for a CV...
With that said, during my short tenure with them (3 months) I've only hauled one auto freight load and my lowest rate was $1.00 plm...

Sent from my MB300 using EO Forums

 

[zorry]

Ken, the term "all in." Is that loaded miles+fsc or ALL miles,loaded and empty,plus fsc ?

 

[21cExp]

Blizzard - tried to send you a PM but you're evidently full in storage...the EO system wouldn't let me send it. PM your email address if you would.

Thanks,

 

[OntarioVanMan]

Ken, the term "all in." Is that loaded miles+fsc or ALL miles,loaded and empty,plus fsc ?

Loaded miles + FSC = All in.....

well it could for some include the whole ball of wax...total load...

 

[layoutshooter]

Loaded miles + FSC = All in.....

well it could for some include the whole ball of wax...total load...

I have never hauled a 'ball of wax'. Why would one want to ship a 'ball of wax'. I could, however, see that if it was in the summer one may wish to ship a 'ball of wax' on a temp controlled stuff to avoid having it arrive as a 'puddle of wax'.

 

[layoutshooter]

Loaded miles + FSC = All in.....

well it could for some include the whole ball of wax...total load...

I have never hauled a 'ball of wax'. Why would one want to ship a 'ball of wax'? I could, however, see that if it was in the summer one may wish to ship a 'ball of wax' on a temp controlled truck to avoid having it arrive as a 'puddle of wax'.

 

[blizzard2014]

Yes that is all in. I don't break the load down between the line haul rate and the fuel surcharge. I just pay the drivers 80 percent of whatever I bill the customer. It works out great. Sometimes I pay higher than 80 percent. Had to go low to get my team out of El Paso and I paid them 90 percent of the load so that they still made a pretty decent rate out of there and I took the hit on my end. But they got a really good load and we all made some money over the weekend.

I also pay Hazmat above the 80 percent at times because he has a very expensive van and I know he really needs to make higher rates. Plus he is my cheerleader on EO and I like it when he talks about our company in a good way! I have my first cheerleader - my proverbial Chef Dennis and Ontario Van Man!

 

[OntarioVanMan]

Yes that is all in. I don't break the load down between the line haul rate and the fuel surcharge. I just pay the drivers 80 percent of whatever I bill the customer. It works out great. Sometimes I pay higher than 80 percent. Had to go low to get my team out of El Paso and I paid them 90 percent of the load so that they still made a pretty decent rate out of there and I took the hit on my end. But they got a really good load and we all made some money over the weekend.

I also pay Hazmat above the 80 percent at times because he has a very expensive van and I know he really needs to make higher rates. Plus he is my cheerleader on EO and I like it when he talks about our company in a good way! I have my first cheerleader - my proverbial Chef Dennis and Ontario Van Man!

Nothing wrong with a cheerleader or 2....LOL although there are some old grumpys that think otherwise...hahaha....let them eat cake i say....
I don't negotiate on every load..I know Chef doesn't either...if its in my range, good enough, everyone makes money....

 

[Moot]

My vans get 80 percent of whatever I bill the customer. That would be 96 CPM on 1.20 per mile.

Who is the customer? If your customer is a 3PL, broker or another carrier, how many people stepped on the original rate of probably $2.25+ per mile that the original customer got dinged for? In my opinion it's not low rates that's the problem in the expedite market, it's the number of people getting a cut out of those rates.

 

[Rocketman]

Who is the customer? If your customer is a 3PL, broker or another carrier, how many people stepped on the original rate of probably $2.25+ per mile that the original customer got dinged for? In my opinion it's not low rates that's the problem in the expedite market, it's the number of people getting a cut out of those rates.

thats a point I agree with 100%. There is a lot of money being drained off by middle men.

 

[OntarioVanMan]

You'd think some carriers would have a vested interest in peeling back the layers, to try and maximize profits....
IMO the Alliance is getting real junky.....the number of carriers that they allow on their board and lack of quality control.