Too many vanners now ?

[idtrans]

Will vanners make any money now after the expo from what I have read many new vanners are getting into the industry. I mean I got out of vans because of the sitting and waiting and if more competition now it will mean more waiting.

Just curious what you all think about that.

 

[OntarioVanMan]

Will vanners make any money now after the expo from what I have read many new vanners are getting into the industry. I mean I got out of vans because of the sitting and waiting and if more competition now it will mean more waiting.

Just curious what you all think about that.

Vans come, vans go...fact of the business..just a matter of how long they can hold on..... the fail rate is like 9 out of 10 within a year....That is why we highly discourage a newbe from investing 40k plus into a sprinter...it is not we are being mean or nasty and don't want them....
This is NOT a cake walk out here....there is so much more to it then just being simplistic "We pick up frieght and deliver it" If that were the case everyone would succeed...

 

[Monty]

It's sort of like the economy, we don't have to many taxes, we have to much spending.

As for vans, it's not that we have to many, we have to little freight.

Add the fact the recuriters make it sound so rosy, and folks get a convoluted view that it's all milk and honey.

A lot of the newbies I chatted with at expo, I advised NOT get into the business right now, simply because they might very well fail. The business is simply not here at the moment.

When business picks up, we will be running, no matter the number of vans available.

 

[Camper]

The problem is too many newbies enter this line of work with expectations that are too far out of sync with the realities of the market conditions in play.

The cargo van sector has no significant barrier to entry. Vans are a dime a dozen and it's easy to get started in one. Hence the copious excess capacity. The problem is, there isn't enough freight to feed this excess capacity.

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[greg334]

I also think that because vans are cheap and pretty much dependable enough regardless of age, getting in as an owner should be the least that a contractor has to do to get into the business.

 

[Dakota]

Vans come, vans go...fact of the business..just a matter of how long they can hold on..... the fail rate is like 9 out of 10 within a year....That is why we highly discourage a newbe from investing 40k plus into a sprinter...it is not we are being mean or nasty and don't want them....
This is NOT a cake walk out here....there is so much more to it then just being simplistic "We pick up frieght and deliver it" If that were the case everyone would succeed...

Plus, the more vans you discourage, the more work you have for yourself
Vans are an easy entry level and you will always have too many of them, but like OVM said most won't last a year, due to lifestyle, money etc.
I also think as time goes on the regular cargo van is being fazed out and replaced with the Sprinter, high top van, or cube van.

 

[greg334]

I also think as time goes on the regular cargo van is being fazed out and replaced with the Sprinter, high top van, or cube van.

I've heard that for 6 years now and it has yet to happen.

I got to add this, it isn't really the capacity that is the problem - van, straight truck or flying carpet - the problem is the company. If the company has 125 vans in the fleet and only five people trying to capture enough freight to keep 50% of them rolling on any given day, it is not the fault of the van driver but the fault of the company. I think many companies who don't have a solid customer base and use load boards don't know how to manage their fleet size and the greed factor comes into play.

ALSO as I am thinking about it, the great thing about a straight truck is that it can take three to five van loads and capture all that revenue - seeing that many will not run for a load that is being bid as low as 60 cents a mile. With four 60 cents per mile loads going in the same direction, that is a good $2.40 a mile which makes more sense to run on a straight truck than a van.

 

[Dakota]

It really doesn't cost these companies too much to put on extra vans, and it makes them look better because they can haul anything that comes along, think about it the contractor is the one that takes all the risk and has all the fees.

 

[Dakota]

Not sure how long expediting(as it currently stands) has been around but I remember the vans lined up along the fence at the Fort Wayne Truck Stop, usually 5 to 10 of them and this was before the Sprinter. There has always been alot of vans, there is money to be made if you are smart and align yourself with the right companies

 

[greg334]

That's the important thing - getting with the right company. If someone is willing to be patient and seek out the right company for them, then they may make good money but most are not patient or willing to wait while taking a risk.

Capacity is not all that important as it used to be - no matter how some want to cut it. Unless they have feet moving to find work, a lot of the freight a lot of these companies get are from load board or other outside sources.

 

[paullud]

I think part of the issue is people talk about how cheap it is but a newbie doesn't understand it means it is cheap compared to a ST or TT but a van and all the expenses that go with it can bankrupt a person in a hurry.

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[Dakota]

That's the important thing - getting with the right company. If someone is willing to be patient and seek out the right company for them, then they may make good money but most are not patient or willing to wait while taking a risk.

Capacity is not all that important as it used to be - no matter how some want to cut it. Unless they have feet moving to find work, a lot of the freight a lot of these companies get are from load board or other outside sources.

I agree you need to find a company that has a diversified freight pool, if it's all automotive freight for example, then that can be a bad thing.

 

[Dakota]

I think part of the issue is people talk about how cheap it is but a newbie doesn't understand it means it is cheap compared to a ST or TT but a van and all the expenses that go with it can bankrupt a person in a hurry.

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I was in a straight truck and quickly ran out of money when the company I was leased to, Ceva decided to pull out of Fort Wayne. After that I was basically on life support til I finally threw in the towel. Problem I had was my truck was a daycab straight truck which is not suitable for expediting, otherwise I probably would have made the jump. Live and learn!!!

 

[BillChaffey]

It's all in your mind. Our Congress Say's the Recession ended two years ago. There has been no cost of living increase for S.S. recipients the last two years, because according to Congress nothing has gone up in the last three years.

 

[xiggi]

A lot of the newbies I chatted with at expo, I advised NOT get into the business right now, simply because they might very well fail. The business is simply not here at the moment.

Personally I would never tell someone to stay out of the business. I tell them what their up against and the chances at succeeding but would never steal a dream from someone.

Even in the toughest of times the good ones will succeed and in the best of times the worst will fail. Just because a person might fail does not mean they will fail.

If people avoided taking chances in business because there was a chance of failing this would be an entirely different country.

 

[Dakota]

It's all in your mind. Our Congress Say's the Recession ended two years ago. There has been no cost of living increase for S.S. recipients the last two years, because according to Congress nothing has gone up in the last three years.

What I notice in the stores is they are downsizing all the products, but charging the same amount. Pretty soon those "fun size" candy bars will be full price
BTW who in their right mind decided to name those small candy bars fun size!!!!

 

[scottm4211]

Personally I would never tell someone to stay out of the business. I tell them what their up against and the chances at succeeding but would never steal a dream from someone.

Even in the toughest of times the good ones will succeed and in the best of times the worst will fail. Just because a person might fail does not mean they will fail.

If people avoided taking chances in business because there was a chance of failing this would be an entirely different country.

I agree. How dare we be so bold as to decide someone's future for them.

 

[scottm4211]

What I notice in the stores is they are downsizing all the products, but charging the same amount. Pretty soon those "fun size" candy bars will be full price
BTW who in their right mind decided to name those small candy bars fun size!!!!

McDonalds has any sized soft drinks for a dollar. Circle K I think for 69 cents :USA:

 

[chefdennis]

There is no question that there will ALWAYS be Cargo Van freight...the issue is similuar to when the 53 ft trailer came to the market...

Shippers use to using the 48 ft'ers did so even though the 53 ft'er was available, but over time while the alot of freight would still go in a 48 ft'er, the mentality shifted...shippers simply got use to saying, "sent a 53 ft'er"...that in my opinion is what is happening with the CV vs Sprinter....yes the CV freight will always be available...but more and more of it is going in Bigger units on a consistent basis...

There are several factors that will let the CV hang on...the carrier is going to need to be consistent with their sales efforts to "sell" the CV and dispatch has to make the effort to dispatch CV's when the freight will go in them...that said, we all know that there are companies that are not taking CV's at all anymore, so that tells you their thought process on the issue...

 

[Dakota]

There are several factors that will let the CV hang on...the carrier is going to need to be consistent with their sales efforts to "sell" the CV and dispatch has to make the effort to dispatch CV's when the freight will go in them...that said, we all know that there are companies that are not taking CV's at all anymore, so that tells you their thought process on the issue...

Those companies not taking on more vans are also the ones that care about their contractors more, some companies keep on signing vans even when they have too many.