how are CVs running lately?

RDC

Expert Expediter
I continue to see ads pop up on this forum for companies looking for Cvs. Are they truly needing them or is it just a ploy so they have as many vehicles out there at their disposal?Really looking to get back into expediting but in a CV this time as I couldnt cut it in a ST. All i ever got was CV loads at their rate of pay :(
 

paullud

Veteran Expediter
We are not running well and yes it is a ploy. Companies charge for things like QC and make good money even if you just sit so they don't really care.

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BillChaffey

Veteran Expediter
Owner/Operator
US Navy
You can go to the carrier Forums and see who's posting. Your not allowed to post but you can PM anyone you want to ask how they are doing.

Also you should ask (whether it will do any good is another question) a prospective Requiter what are your vans averaging for a six month period.
 

zack100

Active Expediter
I continue to see ads pop up on this forum for companies looking for Cvs. Are they truly needing them or is it just a ploy so they have as many vehicles out there at their disposal?Really looking to get back into expediting but in a CV this time as I couldnt cut it in a ST. All i ever got was CV loads at their rate of pay :(

After reading the above, I looked to the left then examined a few paleo-posts .......... HHmmmm, a 6 year newbie ??? :eek:
 

paullud

Veteran Expediter
I continue to see ads pop up on this forum for companies looking for Cvs. Are they truly needing them or is it just a ploy so they have as many vehicles out there at their disposal?Really looking to get back into expediting but in a CV this time as I couldnt cut it in a ST. All i ever got was CV loads at their rate of pay :(

What part of NY are you from?

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RDC

Expert Expediter
After reading the above, I looked to the left then examined a few paleo-posts .......... HHmmmm, a 6 year newbie ??? :eek:

not sure what u mean by your response to me being a "6 year newbie"? As i stated in my post , i drove ST a while back for a company and only got van loads.Just looking for some advice and help, as I have had hours cut on my curent job and in need of something else asap....thanks.
 

paullud

Veteran Expediter
not sure what u mean by your response to me being a "6 year newbie"? As i stated in my post , i drove ST a while back for a company and only got van loads.Just looking for some advice and help, as I have had hours cut on my curent job and in need of something else asap....thanks.

Straight trucks are the way to go now, they are staying very busy.

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xiggi

Veteran Expediter
Owner/Operator
We are not running well and yes it is a ploy. Companies charge for things like QC and make good money even if you just sit so they don't really care.

Posted with my Droid EO Forum App

You really think companies make good money when we are not moving? What they charge for a qc sure isnt going to cover the cost of dispatchers let alone other overhead expenses.
 

paullud

Veteran Expediter
You really think companies make good money when we are not moving? What they charge for a qc sure isnt going to cover the cost of dispatchers let alone other overhead expenses.

They make good money off of the QC charges, I'm paying $35/week, they are making a very high percentage return for doing nothing. I pay for my insurance and everything I need to do the job.How much is a van costing them to have it in the fleet? I'm not complaining I was just telling him the way that companies work, if it hurt them to have vans not moving the big carriers would stop recruiting. Of course they make more money off of a van that is moving but if 75% of the fleet sits they don't care about those individuals, its nothing personal its just business. If van "A" runs 2500 miles this week and van "B" runs 500 miles they made their money off of 3000 miles they don't care who ran them. If they did care they would tell van "B" they were sorry they didn't get him more miles and tell him they will just give him $750. The company is running their business based on the miles and revenue overall not based on making sure each van is doing well.

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xiggi

Veteran Expediter
Owner/Operator
They make good money off of the QC charges, I'm paying $35/week, they are making a very high percentage return for doing nothing. I pay for my insurance and everything I need to do the job.How much is a van costing them to have it in the fleet? I'm not complaining I was just telling him the way that companies work, if it hurt them to have vans not moving the big carriers would stop recruiting. Of course they make more money off of a van that is moving but if 75% of the fleet sits they don't care about those individuals, its nothing personal its just business. If van "A" runs 2500 miles this week and van "B" runs 500 miles they made their money off of 3000 miles they don't care who ran them. If they did care they would tell van "B" they were sorry they didn't get him more miles and tell him they will just give him $750. The company is running their business based on the miles and revenue overall not based on making sure each van is doing well.

I would say the statement that they are making "good" money off your 35 a week is far from the truth. By the time they pay for broken units messed up wires, tech costs and all else I doubt if it amounts to much at all.

Does it cost them much to keep a truck on and not moving probably not for most companies but there is an expense associated with doing so however small. It can be costly for companies with policies like we have at load1.

Part of the reason large fleets keep so many vans is because at any point probably 25% is out of service. Of course they have to run their fleets on gross income and average expenses that only makes sense. I kind of doubt any fleet could pay drivers 750 a week to sit in their van even if they did want to. I don't think the margins in expediting are all that big after the overheads some of these companies have.

Staffing levels are a tuff call because large companies with a sizable customer base to keep happy have to maintain a fleet large enough to handle peak periods, when things are slow like so much lately it hurts us all. A company with a smaller customer base and more bid work does not have to staff for peak times they can simply slow down the amount of bid work being performed and adjust to the trends faster.
 

Turtle

Administrator
Staff member
Retired Expediter
I would say the statement that they are making "good" money off your 35 a week is far from the truth. By the time they pay for broken units messed up wires, tech costs and all else I doubt if it amounts to much at all.
Depends on several things, like how large the fleet is and how long the QC units have been paid for. A small carrier with new QC units, the weekly QC fees are probably not much of a revenue stream at all, since the monthly usage fees on a per-unit average paid to Qualcomm are higher for smaller carriers, and the units are still being paid for, plus a maintenance "bank" needs a couple or three years to be built up. It takes an average of 100 weeks to pay for the units themselves out of our weekly fees. But once the maintenance bank is fully funded and the units are paid-for, a large chunk of that $35 a week becomes pure profit. A Panther, for example, of the $140 monthly QC fees, less than $20 a month goes to Qualcomm for the service, and about $4 a month goes to keep the maintenance bank funded. The rest is a revenue stream. $4 seems like a small number for broken units and messed up wires, but when you've got like 900 units out there it adds up quickly, as most will never need much in the way or repairs or replacements during the first several years of use.

My QC unit was 8 years old when I turned it in, and it never had anything done to it. No repairs at all (until 3 months ago when the up/down arrow buttons finally gave out and they replaced the head unit (keyboard) at a cost of $280). It was more than paid for by the end of year 2 (before the Con-Way buyout, actually, so mine was paid for before they even got it), and the rest was more or less profit.
 

mcavoy33

Seasoned Expediter
Straight trucks are the way to go now, they are staying very busy.

As Paullud said, ST's are the way to go. If you were getting CV rates, your carrier might have been the problem.

If you do your own research with multiple carriers, you should come to the conlusion that you will be more consistent in a ST.
 

OntarioVanMan

Retired Expediter
Owner/Operator
With the last down turn, I would imagine we've lost many a cargo van and they've been replaced with newbees...

a fact is some customers require a certain number of trucks in a fleet to maintain service levels....if a carrier drops below that number, they risk competition coming in and taking that customer away....
So that said..is it smart for a carrier to endure the turnover when a certain customer is demanding units and NOT using those numbers...is this customer producing the revenue to support itself?...
 

MCBuggyCo

Seasoned Expediter
I am convinced that there are companies who's business plans call for making money off their drivers as well as from their customers. I was a courier for all of three weeks and not only were you required to "lease" a nextel phone and pager but there were some companies that required you to "lease" a shirt!
 

LDB

Veteran Expediter
Retired Expediter
I checked with QC about outfitting my "fleet" myself. This was about 4 years ago. The Omnivision was the top of the line. I don't remember the purchase numbers. The monthly amounts were $59.95 or $13.83 weekly. The text to phone for the Panther load offers by phone were $5.95 or $1.37 weekly. You could pay extra and get things like engine idling time etc. but the basic service was as above. Panther was charging $37 a week for the $16 worth of QC fees.

Yes, I know they took care of the maintenance and had to buy the units. Yes, I know those had costs involved. Let's say that used up half of the $20 weekly profit from QC systems. That still left $10 weekly profit times how many units? Weekly profit of $12-13k from QC's seems more significant than some are crediting.

Oh, and at that time Landstar charged $25.50 weekly but didn't include the text to phone option. I guess they were working from actual costs or at least far closer to it.
 

mcavoy33

Seasoned Expediter
I am convinced that there are companies who's business plans call for making money off their drivers as well as from their customers.

Every carrier is or should be making money off of it's drivers / OO.

If they don't equal their profit margin on flow through expenses like QC, they will need to increase their margin somewhere else.
 

greg334

Veteran Expediter
I am convinced that there are companies who's business plans call for making money off their drivers as well as from their customers.

Don't take this wrong but DUH! All companies in one form or another make money off their contractors. :D
 
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