Are CV's More "Relevent" given new market conditions...

Hightech_Hobo · Mar 2, 2011

I thought I'd throw this out for discussion with the "EO Oracles" (I kinda like that term...)

Given the new market conditions...i.e. stronger regulations, new HOS, black boxes...do you think cargo vans will become more revelent. And as a result get the longer runs.

Part 2.... Do you see an increase in competition among CV's..I.e. More cargo vans as a result of larger truckers getting fed up with the new market conditions and moving to CV's as an alternative...

In the last month I have definatly seen an increase in the length of my runs...I am not sure if this is just dumb luck or the beginning of a trend...

I'd love to hear ya'lls thots...

scottm4211 · Mar 2, 2011

I've been driving CV's off and on since the early 80's. There's always been a need for them and always will be.
Even slop buckets

OntarioVanMan · Mar 2, 2011

Well I talk to at least 3 old school straight drivers regularly...they feel with the move to EOBR and the proposed 10 hour day...that will be the end for them...
They are "squeezing" the book now to make a living, they are preparing to move to a CV/sprinter....

the CV/sprinter will always be relevant, whether more so, remains to be seen...my crystal ball is out for repair...

Ragman · Mar 2, 2011

OntarioVanMan said:
the CV/sprinter will always be relevant, whether more so, remains to be seen...my crystal ball is out for repair...

Well get it fixed! The "Ragman" is ready to throw in the towel!

Hightech_Hobo · Mar 2, 2011

"More" relevent "given new market conditions" is the crux of the question....existing relevence is without question...

BillChaffey · Mar 2, 2011

What "New Hours of service" When did the HOS change?.

TheRebel · Mar 2, 2011

Maybe some guys will not agree with me, but since most of the states now have the same speed for all the vehicles, I had and still have the feeling that more and more big trucks are getting the freight designated for cv's (and this is a confirmed fact). What's worse, they won't stop taking just one load, but several loads... maybe now, with the new regulations, the things will go back to "normal"...

Ragman · Mar 2, 2011

TheRebel said:
Maybe some guys will not agree with me, but since most of the states now have the same speed for all the vehicles, I had and still have the feeling that more and more big trucks are getting the freight designated for cv's (and this is a confirmed fact). What's worse, they won't stop taking just one load, but several loads... maybe now, with the new regulations, the things will go back to "normal"...

I'm confused. Why would a shipper pay for a straight truck, if the load will fit on a c/v?

chefdennis · Mar 2, 2011

If or WHEN the HOS for ST's / TT's change, I think you will more 3 skid loads available....but CV' freight will always be there..a for long runs, I haven't seem a decrease in them...since I started 3 yrs ago, I have had a steady amount of longer runs....I gues that is because I have always leased to companies (2 of them) that don't limit my miles.....

TheRebel · Mar 2, 2011

Ragman said:
I'm confused. Why would a shipper pay for a straight truck, if the load will fit on a c/v?

It's not necessarily straight truck, there are also 18 wheelers... and why? Because they take multiple loads for a very, very low price... as low as 50-60 cents.

Hightech_Hobo · Mar 2, 2011

I tend to agree there will be more 3 skid loads for the longer runs...My concern is that profitablely in this market might be negated by increased competition...ie..there are a few more loads...but there are a lot more vans to take them. this would result in overall lower revenues for cargo vans.....

chefdennis · Mar 2, 2011

Most CV's can not haul 3 fullsize skids (44x48 , 48x48, 48x52) so for that to happen, you would have to see a huge increase in Sprinter type capacity van....\\ I dont see a drop in money unless you are contracted to a carrier that is stealing from you to begin with....and then it won't make a difference anyhow...

I didn't just spend the money for a bigger van (14ft5 load floor) because I felt I would soon be making less money...just the opposite, I look for an increase in my income...

TheRebel · Mar 2, 2011

chefdennis said:
Most CV's can not haul 3 fullsize skids (44x48 , 48x48, 48x52) so for that to happen, you would have to see a huge increase in Sprinter type capacity van...

I used to put 3 pallets in my Savana, 48x48x48 for first two and up to 36" height for the third pallet... speaking about Sprinters, now more and more companies want Sprinters only, no more regular cargo vans. What's worse from my pov, GM and Ford refuses to bring in States their European cargo vans (Ford has the real Transit, while GM has Wauxhall in Britain and Opel in Germany), and since they do so, Sprinter is conquering the American market. Let's see what's gonna be with that creepy Nissan NV...

blizzard2014 · Mar 2, 2011

I watch the load boards from time to time and I do not see an increase in 3 skid loads. Sure there are a few that I see on the boards throughout the day, but it is not enough to make me want to go out and buy a larger vehicle. One of the two biggest requests that I am seeing with regards to 2-3, even some 1 skid loads, is a dock high truck! The other request is for a team! Having 3 and even 4 slid capacity might net you 10 more loads a year, but you are still going to miss out on all of the dock high loads.

The van loads I see are out there. You can get a fair share of them too if you are looking after yourself. When I see loads and bid on them, i'm bidding on them for myself, which means I have a better chance of getting them than a leased on guy does. Just like JD said the other day that he called a larger carrier to get a load covered and they automatically told him that they didn't have a truck in the area. I used to sit around waiting for my former carriers to find me loads and just watch the boards as they didn't even bother calling me for available loads, even though I was the only truck in that area.

It's not so much getting a bigger truck or regulating bigger trucks as it is going out there and finding your own customers and freight! A larg carrier has 60 cargo vans to load up on a daily basis; my company only has 1 truck to load up each day. Makes finding a load that much easier.

I doubt the cargo van is going to be discontinued anytime soon. Companies still need stuff delivered direct. If I had a single skid that needed to be delivered dired, I sure as heck wouldn't put it on a regulated truck. You can run the risk of that truck being shut down at a scale house for a violation. The van is here to stay!

purgoose10 · Mar 2, 2011

The C/V's are here to stay period. The biggest problem right now is all the top revenue (largest) expedite carriers are only hiring Sprinter type vehicles. It' does not matter if it's and envelope or 3 skids that carrier wants Sprinter type vehicles. What my guess is they are looking to standardize their fleet so when they get a load they don't have to figure out if they got a truck around that can carry it. They (the carrier) don't care if you make money or not, they don't care if you have a Sprinter payment of $6-$9 hundred and month and can barely make it, as long as you get their load from point A to B. Most of these Carriers think, "Well we can always offer a deal and get another truck to replace that one." When that philosophy stops then things will change. Less trucks, more revenue, it's called capacity. When capacity gets to the range of 5% then the tightening begins and the revenue will increase because everybody's out of trucks. Then they go to name their price. We still get the same but the carrier has now picked up an extra 50% on the load because he has a truck there.

All in all remember except the exception of the rule of a couple of carriers that are on this site, most carriers (the large one's) don't give two cents for the operator, C/v, TT,ST doesn't matter.

I don't mean to make this sound harsh, it's just reality. Your in the trucking business to haul freight, their in this to broker freight and make money to. They feel it's your business not theirs, goes back to a solid business plan. Oh my there's that thing again.

Hightech_Hobo · Mar 2, 2011

Alright!! The "oracles" are coming out in droves now!!! Great answers and insights guys!

greg334 · Mar 2, 2011

What new market conditions?

Moot · Mar 3, 2011

Relevent? I got your relevance right here: BAN THE VAN!

AMonger · Mar 3, 2011

Hightech_Hobo said:
I thought I'd throw this out for discussion with the "EO Oracles" (I kinda like that term...)

Given the new market conditions...i.e. stronger regulations, new HOS, black boxes...do you think cargo vans will become more revelent. And as a result get the longer runs.

Part 2.... Do you see an increase in competition among CV's..I.e. More cargo vans as a result of larger truckers getting fed up with the new market conditions and moving to CV's as an alternative...

In the last month I have definatly seen an increase in the length of my runs...I am not sure if this is just dumb luck or the beginning of a trend...

I'd love to hear ya'lls thots...

I can just see it...companies without APUs are going to have to find ways to combat idling. It will be cheaper for them to have their drivers get hotel rooms at some point, but it will be even cheaper than that just to tell their drivers they can't idle regardless of the weather. More big truck drivers will get fed up and look into expediting in a van, which we sure don't need. Heck, we need about half of the guys out here now to go home and park it so there's enough freight for the rest of us! I get questions all the time from big truck drivers about what it's like and how to get into expediting. And then what happens when there's, say, 20% more of us on the road? Do we then attract more attention from the regulators?