Considering getting into OTR expediting with cargo van, what’s the market like?
- Thread starter DeanOC
- Start date
Just curious, why would you think about OTR cargo van expediting?
Hey Ragman, GF and I were remote workers that bought a transit HD350 to do full-time vanlife, however, we were both laid off during mid-build of our campervan. At this stage, it's still highly capable to do hauls. We're currently waiting on our MC# authorisation after obtaining our DOT#.. We have plans to tag-team the driving and dispatching loads OTR.. do you have any suggestions or ideas? We'd like to dedicate our existence to be doing long-hauls OTR to travel at the same time. We'd appreciate anything you can advise. Thank you!
Hey all, Im also thinking the same about OTR van life. I hear money is better than local.
** Thanks for your service. Vets should have a certain mental advantage in this business. **
You will hear alot about Rate Per Mile here. That is only one part of the overall economics.
1. OTR - There is more money, but know what your physical and mental limits are for distances and understand the concept "deadhead miles."
2. You need to balance RPM with NET $/ hour. Generally, the shorter the distance, the more per mile (because of load/unload downtime).
3. Get familiar with the concept of variable vs fixed costs. THIS is the critical part of understanding ALL businesses. If you get this, you will have gained 5 years experience on the business side.
4. If you are not familiar with commercial driving, don't fall into the greed trap by grabbing a DOT number and wasting time managing administrative requirements to "get all that rate". Start by driving for a carrier, get lower insurance costs, and let their skilled dispatchers get the loads while you learn the nuts and bolts.
I suggest brainstorming ALL your costs and spreadsheeting them. Then experiment with different distances and rates to see if the environment fits you. It will also be invaluable in helping you bid on loads. e.g. using this, I discovered that the IRS standard mileage deduction of 0.73/mile is an accurate total cost at about 25,000 miles per year on a sprinter van. After that, your fixed cost per mile continues to fall where your earnings per hour are much better and you will head for decent income.
Other than that, scour the web and make calls for information, enjoy some YT cargo van videos, and make notes on all of it. GET PREPARED.
I have lots of questions, but first I have a few months experience in hot shot driving with a friend's company 2 winters ago. Rates and overhead killed it for him. I drove his Ram 3500, with 30ft gooseneck. Im aware of deadhead miles. My plan is to lease on to someone, but first I need a Van. Should I lease or buy?
Neither.
Best advice for a newbie is to drive for a fleet owner for at least a year to learn the business using his equipment.