Adding a reefer
- Thread starter Finn777
- Start date
Your question depends on several things. Who is the carrier and at what rate are you running, and what are you paying for the reefer.
Searching the archives will give you some idea to how they are viewed by other members. Some carriers may need this requirement to keep you running consistently, and others don't. I would research carefully as it is a large investment.
Davekc
owner
21 years
PantherII
EO moderator
Searching the archives will give you some idea to how they are viewed by other members. Some carriers may need this requirement to keep you running consistently, and others don't. I would research carefully as it is a large investment.
Davekc
owner
21 years
PantherII
EO moderator
Streakn1
Veteran Expediter
During our year of researching expediting the one thing we heard over and over was "the money is in a DR-unit (22' reefer) leased on with FedEx Custom Critical. That was 3-years ago and great advice.
Now let me clarify, we are a team so I can only speak based on team revenue. We have friends (teams) that drove 22' dry units that we compared numbers with. What we found was we drove at lease a third less miles for the year, and made as much or more revenue. Of course we have more to maintain with the reefer unit. I would say reefer loads for us have been about 45% of our overall freight base. Mileage pay for all dspt'd miles has been great. We feel its worth having the reefer. Some people like the reefers and others dont. Good luck on your decision.
Now let me clarify, we are a team so I can only speak based on team revenue. We have friends (teams) that drove 22' dry units that we compared numbers with. What we found was we drove at lease a third less miles for the year, and made as much or more revenue. Of course we have more to maintain with the reefer unit. I would say reefer loads for us have been about 45% of our overall freight base. Mileage pay for all dspt'd miles has been great. We feel its worth having the reefer. Some people like the reefers and others dont. Good luck on your decision.
I have friends running WG in a dry box. They have been in the business about 15 months. They came to expediting with a strong business background. They are just beginning a truck build that will be a DR unit. I'm certain they wouldn't be doing that without a tremendous amount of research and planning to back up their decision, especially since their current truck, a Western Star class 8 D unit, was purchased new 15 months ago. They certainly don't need to replace this truck but have determine the return will justify the change.
Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.
Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.
Thanks folks for your input.I just wanted to hear from drivers rather than salesmen recruiters etc.Although they mean well I have always liked to hear the pros and cons of subjects even more when my pocketbook is involved.
One is kind of scared sometimes when a big investment like this is involved,But then buying a house or a car was also and we all got over that.
Even getting into Expediting was a risk we toyed with also.
So once again thanks for your help and be careful out there.
One is kind of scared sometimes when a big investment like this is involved,But then buying a house or a car was also and we all got over that.
Even getting into Expediting was a risk we toyed with also.
So once again thanks for your help and be careful out there.
>Your question depends on several things. Who is the carrier
>and at what rate are you running, and what are you paying
>for the reefer.
>Searching the archives will give you some idea to how they
>are viewed by other members. Some carriers may need this
>requirement to keep you running consistently, and others
>don't. I would research carefully as it is a large
>investment.
DaveKC,
My reefer sentiments are well known and have been consistent from the day I began posting. A search of the archives will reveal that while you were once a fierce critic of reefers, you have changed your mind and purchased one (or more?) yourself. Perhaps you could share more about why you changed your mind and what results you've had to date.
Now that you have stood on both sides of the reefer-opinion fence, and have current-day reefer experience, your reefer experience would be especially informative to Finn777.
I have nothing new to add, except that our reefer experience continues to prove to Diane and me that a reefer is well worth the investment, if you run with FedEx Custom Critical, an expediting carrier known to have a fair amount of reefer freight.
>and at what rate are you running, and what are you paying
>for the reefer.
>Searching the archives will give you some idea to how they
>are viewed by other members. Some carriers may need this
>requirement to keep you running consistently, and others
>don't. I would research carefully as it is a large
>investment.
DaveKC,
My reefer sentiments are well known and have been consistent from the day I began posting. A search of the archives will reveal that while you were once a fierce critic of reefers, you have changed your mind and purchased one (or more?) yourself. Perhaps you could share more about why you changed your mind and what results you've had to date.
Now that you have stood on both sides of the reefer-opinion fence, and have current-day reefer experience, your reefer experience would be especially informative to Finn777.
I have nothing new to add, except that our reefer experience continues to prove to Diane and me that a reefer is well worth the investment, if you run with FedEx Custom Critical, an expediting carrier known to have a fair amount of reefer freight.
Finn777,
Don't be too quick to make up your mind. Reefer decisions should be made on more than just the word of a few satisfied reefer users on EO. There are others out there that have decided against reefers. Depending on what carrier you are with, your load strategy and a host of other factors, a reefer purchase may be a mistake. Also, there is in today's reefer marketplace those reefers that meet FedEx's T-val requirements and those that do not. New v. used reefer equipment also opens up a host of factors to be considered. Reefer ownership is not a success gimmee. Proceed with caution and diligence.
Don't be too quick to make up your mind. Reefer decisions should be made on more than just the word of a few satisfied reefer users on EO. There are others out there that have decided against reefers. Depending on what carrier you are with, your load strategy and a host of other factors, a reefer purchase may be a mistake. Also, there is in today's reefer marketplace those reefers that meet FedEx's T-val requirements and those that do not. New v. used reefer equipment also opens up a host of factors to be considered. Reefer ownership is not a success gimmee. Proceed with caution and diligence.
Yes, we do run both. My opinion changed somewhat because the rate structure was different compared to past offerings. Current numbers found it out performed in gross numbers campared to where the truck was originally leased. I buy this equipment used. I don't know if it is a fair comparison in that regard because I only have gross monthly numbers and availibility to compare. I don't have other numbers so it is not a total analysis.
When looking at current numbers the reefer unit out performs the other surface trucks by 6 percent. When comparing, the 6 percent gain is wiped out by repairs and downtime. Specifically reefer repairs. Keep in mind that this is on used equipment.
As I have stated in other posts, it is more of a calling. The numbers are pretty much a wash. Remember that this is just my comparisons. If buying new, the numbers just don't add up. All of the additional finance,insurance, and operational costs don't offset the difference. With some carriers it might? I find that for me, the reefer has too many restrictions in size (interior box width) that we lose some frieght from it.
Keep in mind also that if you have to move from a carrier, there is only a handful of companies where this equipment has any value.
The easiest way is to do a simple comparison of numbers. If you purchase a $100,000 truck and run at say $1.30 base rate, what numbers do you need to run a $150,000 reefer truck and achieve the same percentage of return. Keep in mind that finance, maintenance, insurance, and fuel charges will be higher. Will you get more runs? Maybe, but for us it is a wash. You gain some loads, and lose some. That comparison is on a 22 footer. Variances between the two have changed little over the last decade. Rates are pretty much the same, but all other costs have increased significantly.
Think it through carefully before you jump.
Davekc
owner
21 years
PantherII
EO moderator
When looking at current numbers the reefer unit out performs the other surface trucks by 6 percent. When comparing, the 6 percent gain is wiped out by repairs and downtime. Specifically reefer repairs. Keep in mind that this is on used equipment.
As I have stated in other posts, it is more of a calling. The numbers are pretty much a wash. Remember that this is just my comparisons. If buying new, the numbers just don't add up. All of the additional finance,insurance, and operational costs don't offset the difference. With some carriers it might? I find that for me, the reefer has too many restrictions in size (interior box width) that we lose some frieght from it.
Keep in mind also that if you have to move from a carrier, there is only a handful of companies where this equipment has any value.
The easiest way is to do a simple comparison of numbers. If you purchase a $100,000 truck and run at say $1.30 base rate, what numbers do you need to run a $150,000 reefer truck and achieve the same percentage of return. Keep in mind that finance, maintenance, insurance, and fuel charges will be higher. Will you get more runs? Maybe, but for us it is a wash. You gain some loads, and lose some. That comparison is on a 22 footer. Variances between the two have changed little over the last decade. Rates are pretty much the same, but all other costs have increased significantly.
Think it through carefully before you jump.
Davekc
owner
21 years
PantherII
EO moderator