One for those who have reefers..
Refrigerated Trucks Haul More Than Just Perishables - Inbound Logistics
Refrigerated Trucks Haul More Than Just Perishables - Inbound Logistics
Temp controlled market...
- Thread starter OntarioVanMan
- Start date
I would agree. The only thing about reefer units is some carriers that are on flat rates make overlook the reefer because their rate per mile is higher. We are trying something with our carrier now to help the truck get offered more loads. It's working out better for us and our carrier on this one reefer truck we signed on. We are wanting to do the same thing with our other reefer units. Some people look at rate per mile and some people look at total revenue.
We look at total revenue with the rate per mile that we need to be at for all miles.
We look at total revenue with the rate per mile that we need to be at for all miles.
I had you in mind when I posted this....you mentioned in another thread that after a review period, you were considering getting rid of your reefer unit...
moose
Veteran Expediter
This goe's back to my question from about 2 years ago,
what is Expedite TVAL market.
this link illustrate the fact that high value TVAL freight is being moved largely by Truck loads carriers.
on a side note, last week i did solved a reefer mystery.
you all remember (doa'h) my question regarding a FXCC TVAL like C unit leased on to a large household moving giant.
well, last week i was at a TA shop (no worry, nothing wrong with the gliders, it was for an 90 days DOT inspection...)
and there come's the TVAL unit.
apparently they have a calif. shipper that moved medical equipment. that scanner have liquid, and cannot be frozen.
the scanner needs to go to calibrations once a year, and most hospitals used that scanner, so lots of loads.
if you pay attention, there are some drop deck 53 footer household movers reefer trailer.
it is amazing, that carrier do exactly like FXCC dose, they move most of that freight on a 53 reefers, with the C units taking the leftovers.
fascinating
- never tell a Moose a secret...
what is Expedite TVAL market.
this link illustrate the fact that high value TVAL freight is being moved largely by Truck loads carriers.
on a side note, last week i did solved a reefer mystery.
you all remember (doa'h) my question regarding a FXCC TVAL like C unit leased on to a large household moving giant.
well, last week i was at a TA shop (no worry, nothing wrong with the gliders, it was for an 90 days DOT inspection...)
and there come's the TVAL unit.
apparently they have a calif. shipper that moved medical equipment. that scanner have liquid, and cannot be frozen.
the scanner needs to go to calibrations once a year, and most hospitals used that scanner, so lots of loads.
if you pay attention, there are some drop deck 53 footer household movers reefer trailer.
it is amazing, that carrier do exactly like FXCC dose, they move most of that freight on a 53 reefers, with the C units taking the leftovers.
fascinating
- never tell a Moose a secret...
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The review period may continue for a long time. Just when I get to thinking that dropping the reefer would be a good idea, we get a reefer load that changes my mind.
That said, it is important to note that our reefer unit was paid for long ago. If you have a paid-for reefer unit and are coming over to Landstar, that's one thing. I would not recommend coming to Landstar with the idea of buying a reefer unit to haul reefer freight here. At present, there is not enough reefer freight at Landstar to make a reefer pay.
That said, the reason the review period may continue for a long time is that there are flashes of reefer interest (that's temperature controlled trucks) among the agent base and in the office. In the last two months, three CR or DR units have left FedEx Custom Critical for Landstar and people have noticed.
The agents we talk to do not do much reefer freight because they do not have a lot of reefer trucks in the fleet, but as they see the reefer truck numbers grow, they see a new opportunity.
TVAL freight is one of many kinds of reefer freight. Because of the centralized office support that is required to successfully participate in that market, I don't see Landstar ever getting into it, nor would I recommend that they do.
There are many other customers looking for temperature controlled trucks whose needs are far easier to meet. Such are the reefer loads we have hauled so far at Landstar and such may be the increasing slice of the market we may serve.
That said, reefer interest may not develop into anything more than what it is now at Landstar, in which case it may make sense to drop the reefer, but not until the costs of having it or upgrading it because of CARB regs exceed the benefits.
Researching this so far, I have learned:
- A new dry box purchased to replace our present reefer box would add enough interior width to place two 48" x 48" skids side by side (not possible now because insulated walls decrease interior width).
- A new dry box could add one foot in length because the present lift gate deck extension could be built into the box floor, converting the lift gate into a flush mounted gate. It was not done before because the uninsulated metal surface of the lift gate would have created a thermal leak.
- A new dry box would weigh 1,100 lbs. less than our present reefer body. Dropping the reefer would reduce the truck's weight by about 1,300 lbs. In other words, dropping the reefer and swapping the reefer body for a dry box would add about 2,500 lbs. payload to the truck (assuming we do not replace the underbody reefer with a slide out grill).
- It would not be required to add a dry box. We could simply drop the reefer and continue on with the box we have now.
With the above information in mind, we are continually watching the freight and talking to agents about reefer opportunities. With just two months of history to work with, no compelling reason has yet surfaced to drop the reefer and/or replace the reefer body with a dry box.
It remains an open question and there is no rush to answer it.
This is not a Landstar-only issue. Just a couple days ago we parked next to a FedEx truck that used to be numbered CR-XXXX and was now numbered C_-XXXX. The truck had a reefer body on it but the reefer had been removed.
I did not get the chance to talk to the drivers but judging by the age of the truck, I think the reefer was aged out of the FedEx fleet according to FedEx's rules.
If you are in a FedEx CR or DR unit and your reefer and reefer body gets too old for FedEx's liking, do you get a new reefer and new reefer body, or do you go dry? As time marches on and trucks age, lots of folks will face this question.
Add technology changes to the decision-making mix. Just two days ago, Diane's and my reefer dealer called with news that Carrier (our reefer manufacturer) had just gotten a reefer exhaust filter approved for use in California, which is still an expensive solution for older reefers but less expensive than having the engine replaced to become CARB compliant.
There is a lot to consider when making the reefer drop/upgrade/replace decision. At present, we are rolling happily along, making use of our reefer at Landstar as the opportunities rise.
Since making the move to Landstar, the question is, is our reefer and reefer body an asset or liability? At present, it seems to be an asset but the problem is that you won't ever really know what you are missing when you do not have the capacity to carry it.
It is easy to know what our reefer gets. All we have to do is look at the freight we haul and the pay. It's not easy to know what we might get with a different truck configuration. That varies greatly among drivers and will vary even more so at Landstar where driver/agent relationships make a difference.
It might be presumed that a larger reefer body would out-earn a smaller one, but when we were at FedEx Custom Critical, Diane and I out-earned many a larger truck with our smaller one. So too at Landstar. It might be presumed that a larger dry box would out-earn a smaller reefer truck but when it comes down to it, there is no way to know for sure.
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Phil
Can you share with the readers on what percentage of loads at FedEx was T-val loads. Some carriers only want to pay extra for trucks that are T-val trucks, which I disagree. T-val is a great thing, but there is other freight that is reefer. With all the extra cost is T-val worth the cost of being on your truck for lets say for .20 a mile?
Can you share with the readers on what percentage of loads at FedEx was T-val loads. Some carriers only want to pay extra for trucks that are T-val trucks, which I disagree. T-val is a great thing, but there is other freight that is reefer. With all the extra cost is T-val worth the cost of being on your truck for lets say for .20 a mile?
greg334
Veteran Expediter
OVM, there are a lot of us out here who have been doing this for a while and it seems that if you have in mind of one person who has only had one type of freight on their truck at any given time, then you missed out on the 99% of us others.
With that said, Moose hit the nail on the head when he said "high value TVAL freight is being moved largely by Truck loads carriers."
FedexCC may take 2% of all the GxP freight (Tval is a process, not a way to carrier freight) and while FedEx SC may take 15% of that type of freight with the rest being divided up among other carriers outside of the "expedite" world. There is a lot more out there than this niche market and these few hundred trucks floating around. FedEx didn't ask Qualcomm to come up with the monitoring system, that was another large carrier who did and they were also instrumental in getting both Thermoking and Carrier to come up with some of the systems they use to cover GxP freight.
"Because of the centralized office support that is required to successfully participate in that market, I don't see Landstar ever getting into it, nor would I recommend that they do"
Ye of little knowledge ...
Why do YOU assume that it will take a "centralized" office support to "successfully" participate in this market?
Stop thinking FedEx like and start thinking outside the box. It's great that You can recommend something to Landstar from your standpoint of being one truck in a fleet of 7000 plus.
I think that is a bit backwards, Landstar does this work if no one seemed to notice. AND it is up to the agent to be the central support, not the "office". Many would be surprised that there is a lot of agents that do more than just dry freight, making it possible for opportunities to be all over the place.
With that said, Moose hit the nail on the head when he said "high value TVAL freight is being moved largely by Truck loads carriers."
FedexCC may take 2% of all the GxP freight (Tval is a process, not a way to carrier freight) and while FedEx SC may take 15% of that type of freight with the rest being divided up among other carriers outside of the "expedite" world. There is a lot more out there than this niche market and these few hundred trucks floating around. FedEx didn't ask Qualcomm to come up with the monitoring system, that was another large carrier who did and they were also instrumental in getting both Thermoking and Carrier to come up with some of the systems they use to cover GxP freight.
"Because of the centralized office support that is required to successfully participate in that market, I don't see Landstar ever getting into it, nor would I recommend that they do"
Ye of little knowledge ...
Why do YOU assume that it will take a "centralized" office support to "successfully" participate in this market?
Stop thinking FedEx like and start thinking outside the box. It's great that You can recommend something to Landstar from your standpoint of being one truck in a fleet of 7000 plus.
I think that is a bit backwards, Landstar does this work if no one seemed to notice. AND it is up to the agent to be the central support, not the "office". Many would be surprised that there is a lot of agents that do more than just dry freight, making it possible for opportunities to be all over the place.
I do not know that number. I could go back and run a report to see what it was for our truck but that number would not be meaningful. It would vary greatly among trucks, and even more so in the last year when FedEx began to give preferential treatment to company-owned reefer trailers and dispatched freight onto those ahead of contractor-owned equipment.
He posted it where everyone can read it so obviously he did not want only one person viewing it., Were your feelings hurt because he pointed someone out that you have a man crush on?
moose
Veteran Expediter
Phil, i think that as winter roll in, you might be interested to market the truck as a TVAL unit as well, rather then just a reefer box.
my experience with TransportAmerica was that there is a HUGE market for a 'guarantee no freeze delivery service' .
kind of educating the agent network about the service you can provide.
a truck, or trailer in my experience, do not need to go throe all the TVAL cert. nightmare, to be TVAL, a use of a 'brick' will do for most shipments.
the only thing to consider, is that your competition can move that freight for less, if they have a 'heated trailer/box', as those costs way less to buy and operate .
in coincident, i am now the proud owner of a brand new flatbed reefer trailer.
my experience with TransportAmerica was that there is a HUGE market for a 'guarantee no freeze delivery service' .
kind of educating the agent network about the service you can provide.
a truck, or trailer in my experience, do not need to go throe all the TVAL cert. nightmare, to be TVAL, a use of a 'brick' will do for most shipments.
the only thing to consider, is that your competition can move that freight for less, if they have a 'heated trailer/box', as those costs way less to buy and operate .
in coincident, i am now the proud owner of a brand new flatbed reefer trailer.
greg334
Veteran Expediter
God can't you read?
There is a difference in how you and I are using the term "TVAL." By TVAL I mean a very specific service that requires certified equipment on the truck and a huge amount of back-office support that the customers demand and audit.
As for the rest of the reefer market, I'm sure opportunities are there but Diane and I have been doing well with dry freight at Landstar too. That reduces the need and urgency to put a lot of effort into marketing our reefer.
The reefer was a vital part of our business when we were with FedEx Custom Critical. At Landstar, this piece of equipment is useful and still an asset, but less vital. Winter may make a difference but Diane and I will be off the road for a good part of it.
Here is a live shot, of sorts, that illustrates the trade-offs and also illustrates how cloudy the reefer/no-reefer question is.
It is Monday morning. We are in Tacoma, WA where we delivered freight yesterday. Tacoma is not a good freight area. For purposes of this discussion, set aside how and why we got here. It was a choice we made and we would make it again. The issue now is getting out. Today is a national holiday (Columbus Day) so some shippers that might put freight on our truck are closed.
An agent called first thing this morning with an ASAP pick up that went from this area to San Francisco, a much better freight area. Pay to the truck was $1.60 per mile, all miles. We normally don't like to run at that low of a price but given today's circumstances, it might be wise to do so.
The problem was the freight was two pieces that were 48" wide, which is just a bit too wide to fit into our reefer body because the insulated walls do not provide enough interior width. The pieces were too long to be loaded end-to-end and too tall to be stacked inside the box. That load was lost to us for that reason.
... to be continued in this space. I will edit-update it later. We just got dispatched. I need to go to work on that ASAP pickup.
EDIT UPDATE: I'll cut this short. The load we got illustrates the difficulty for trucks of every kind. You never know what you will get until you get it.
The load we got, got us out of Tacoma. The load that did not fit did not. So did we lose something to our reefer box size or not? Note that had we declined the load that fit, there is no telling what might have come along later.
It is Monday morning. We are in Tacoma, WA where we delivered freight yesterday. Tacoma is not a good freight area. For purposes of this discussion, set aside how and why we got here. It was a choice we made and we would make it again. The issue now is getting out. Today is a national holiday (Columbus Day) so some shippers that might put freight on our truck are closed.
An agent called first thing this morning with an ASAP pick up that went from this area to San Francisco, a much better freight area. Pay to the truck was $1.60 per mile, all miles. We normally don't like to run at that low of a price but given today's circumstances, it might be wise to do so.
The problem was the freight was two pieces that were 48" wide, which is just a bit too wide to fit into our reefer body because the insulated walls do not provide enough interior width. The pieces were too long to be loaded end-to-end and too tall to be stacked inside the box. That load was lost to us for that reason.
... to be continued in this space. I will edit-update it later. We just got dispatched. I need to go to work on that ASAP pickup.
EDIT UPDATE: I'll cut this short. The load we got illustrates the difficulty for trucks of every kind. You never know what you will get until you get it.
The load we got, got us out of Tacoma. The load that did not fit did not. So did we lose something to our reefer box size or not? Note that had we declined the load that fit, there is no telling what might have come along later.
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We do all we can to utilize our reefer as much as possible. It roughly accounts for 40% of our loads and 70% of our revenue.
moose
Veteran Expediter
& 14% of fuel
& 18% of maintenance
& 20% of down time.
& 10% of head-deck
& 35% of NET <---------...
there is no real answer to the question : 'to reefer or not to reefer' ...
No good answer but since I have one I had better use it! What 20% down time?
