cargo van pay?

skyraider

Veteran Expediter
US Navy
Been talking to some competitors as we park next to each other and some of these drivers are getting only 50 cents a mile or worse,,what in the world. How does one make ends meet? It is creating lots of turn over and lots more vans for sale. If you are a o/o, u best have ur van paid for. Is anyone out here raising a family on cago van pay? 50cents a mile, mercy....sky
 

DannyD

Veteran Expediter
I've talked to one company who's paying .40. Ouch. In addition to having your van paid off, ya have to run almost 0 deadhead.

Gas at the moment is .15/mile.

At the same time, there are people out there making it. So someone's doing something right. Maybe they'll chime in on this post.
 

Turtle

Administrator
Staff member
Retired Expediter
One way to look at this is, you should, realistically, be able to pay yourself 32 cents a mile, or there abouts. Add 15 cents per mile for fuel, and you're looking at 47 cents per mile that doesn't take into consideration your other costs per mile, like tires, insurance, Qualcomm, licenses, maintenance, repair, meals, telephone, everything you spend out on the road, and if the van's not paid for, the van payment. If you remove your own pay and decide to run as a charity public service, 50 cents a mile will be fine, as most paid-for vans will have a realized CPM of 32-36 cents per mile when you add up everything except driver pay. But if you want to actually make any money at all, 50 cents a mile ain't gonna do it, since 32 cents a mile added to, say, 35 cents a mile, gives you a CPM of 67 cents per mile. You'll notice it first with the routine maintenance that will get skipped, then the unexpected breakdown that you can't pay for. Suddenly, you're out of the business. But as long as the carriers can find people to haul it at 50 cents a mile, they're good to go. But every load you run that's less than 67 cents a mile, you're losing money.
 

skyraider

Veteran Expediter
US Navy
Thanks for the feedback, have already been noticing that it takes more then 50cents a mile to make it. Have also been trying different highway speeds. Have notice in my Dodge 1ton, 318 engine cargo van that at 63 or 64mph, that the mileage hits 16mpg, so Im happy with that. Have installed a k/n airfilter and run Mobile one oil for longer oil change intervals(15,0000miles with a filter change at 7500 miles and add oil as needed).Highway speed seems to be the killer on mpg for me.
 

fastrod

Expert Expediter
These companies will push this rate as low as they can and still get people to take the loads. They have that "exclusive use" contract with you that means you either go under by running there 50cpm loads or go under by turning them down and sitting with no loads at all. After your done they will just find another person to put in your place. They will get them in orientation and pump there head full with terms like "partner with" , "work as a team" and "professional expedited driver" and send them out to run these 50cpm loads until they do go under and get replaced by someone else. And the cycle continues on and on and on. Something else to consider, when was the last time these companies raised the rate they pay you?

Skyraider I have a 1 ton dodge van with a 360 and I get 16 to 17 with the cruise set at 68 mph. How does that k&n filter work for you? I have been thinking about trying one.
 

skyraider

Veteran Expediter
US Navy
K / N filter:: Just put it in a week ago, so far I hve not had 5 tanks of fuel run thru it yet, but am leaving out for Mississippi in an hour, so I will have an up date nxt week or so. ONe note though, the noise from the carb is louder when I take off or climb hills, a deeper tone and louder so that changed for sure, but its paying 86 cents a mile,,,so thats real good,,none of that 50 cent stuff with our outfit so far. I like it best when its a 1000 mile run,,,860bucks less$150 gas= $710 my net so to speak. With 50 cents a mile,,500 less 150gas= $350 for the driver, staarve to death they do...........sky . We all know who pays that kind of pay ,,,look for the black cat,,lol...........
 
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xiggi

Veteran Expediter
Owner/Operator
K / N filter:: Just put it in a week ago, so far I hve not had 5 tanks of fuel run thru it yet, but am leaving out for Mississippi in an hour, so I will have an up date nxt week or so. ONe note though, the noise from the carb is louder when I take off or climb hills, a deeper tone and louder so that changed for sure, but its paying 86 cents a mile,,,so thats real good,,none of that 50 cent stuff with our outfit so far. I like it best when its a 1000 mile run,,,860bucks less$150 gas= $710 my net so to speak. With 50 cents a mile,,500 less 150gas= $350 for the driver, staarve to death they do.....
......sky . We all know who pays that kind of pay ,,,look for the black cat,,lol...........

I think you have your facts very rwrong about the cat.
 

guido4475

Not a Member
I think you have your facts very rwrong about the cat.

How do you figure? From what I hear from other co. owners, dispatchers, etc, the meow is the biggest culprit for these low rates and underbidding, turning this business into a ltl business.Imagine that.
 

fastrod

Expert Expediter
How do you figure? From what I hear from other co. owners, dispatchers, etc, the meow is the biggest culprit for these low rates and underbidding, turning this business into a ltl business.Imagine that.

Trying to maintain market share and there profit margin at any cost.
 

xiggi

Veteran Expediter
Owner/Operator
How do you figure? From what I hear from other co. owners, dispatchers, etc, the meow is the biggest culprit for these low rates and underbidding, turning this business into a ltl business.Imagine that.

I have never seen a load offer at the price mentioned or close to it. That is ome thing you have to love about this biz a rumor mill that can compete with any out there.
 

guido4475

Not a Member
Trying to maintain market share and there profit margin at any cost.

At our expense.Used to be an excellent co to work for in 1995, when they were a smaller co,but not now.What a shame.This is why I prefer smaller co's. More caring,concerned, for the most part.
 

transporter

Expert Expediter
of the drivers i talked to on average it aint a meowing kitty with the cheapest paid drivers out there. it is a lightening truck.
 

RLENT

Veteran Expediter
of the drivers i talked to on average it aint a meowing kitty with the cheapest paid drivers out there. it is a lightening truck.
That's true ..... the part about the kitty drivers I mean :rolleyes: .... I personally have three friends that are leased on with 'em (Sprinters) .... we share info about our respective loads on an informal basis .... all three of them are doing decent (at times pretty well actually) from what I know from talking to them (usually daily)

Might depend on how willing you are to run, and where you are willing to go.
 

chefdennis

Veteran Expediter
i think a better question would be, with all of this being said, what should be a realistic expectation....and make sure you take a close look at Turtles post....figure your own "wants and needs"...then come up with what your expectations might be and how you would go about getting to them......

it ain't all about the carrier......think about it.....
 
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RLENT

Veteran Expediter
I would agree - the most relevant part part of the question you ask Guido, might be the "who" rather than the "what company" - all companies are somewhat different, as well as somewhat the same .... usually the largest factor one has under their control and can actually do something about is what one does - not something someone else does, which is not under ones control.
 

OntarioVanMan

Retired Expediter
Owner/Operator
I would agree - the most relevant part part of the question you ask Guido, might be the "who" rather than the "what company" - all companies are somewhat different, as well as somewhat the same .... usually the largest factor one has under their control and can actually do something about is what one does - not something someone else does, which is not under ones control.

Huh? :eek::confused::rolleyes:
 

guido4475

Not a Member

Thank you, OVM, you took the words out of my mouth.But I think what they were trying to say was, instead of asking drivers how they are doing at a company, maybe it should be how is your company doing for you? I have been in this business for awile to know what you mean,and even though some co's may pay more per mile, they also might have alot of deductions as well.Which would bring the total profit to it's knees, if there are alot of deductions each week.I'm just curious if there is any one co better suited than the other for cargo vans, that's all.

And on a different note, I was in the basement going through some old paperwork, contracts, etc, and I came across my first settlement sheet/paycheck stub from 1995 while at the cat. First weeks pay, before the ....89 cent a gallon fuel deduction was $4,600 to the truck.How I would love to see that again.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Thank you, OVM, you took the words out of my mouth.But I think what they were trying to say was, instead of asking drivers how they are doing at a company, maybe it should be how is your company doing for you? I have been in this business for awile to know what you mean,and even though some co's may pay more per mile, they also might have alot of deductions as well.Which would bring the total profit to it's knees, if there are alot of deductions each week.I'm just curious if there is any one co better suited than the other for cargo vans, that's all.

And on a different note, I was in the basement going through some old paperwork, contracts, etc, and I came across my first settlement sheet/paycheck stub from 1995 while at the cat. First weeks pay, before the ....89 cent a gallon fuel deduction was $4,600 to the truck.How I would love to see that again.

Is that when you were in a straight truck?
 

OntarioVanMan

Retired Expediter
Owner/Operator
over 9 years in a cargo van now....there is no good reason for 50 cent freight ..absolutely none...any carriers offering up this rate should be shot and pizzed on....unless you requested to go home and something came up to get you there....or out of a deadzone.....but to run it as a matter of everyday running no sir...nope it will just run you into the ground...I didn't make it this long by running .50 cent loads.
 
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