The State of Cargo Van Expediting

[dhalltoyo]

NOTE: I do have this same post on the General Form. Some thought it might be better suited here, but I wanted to address some concerns regarding those who are currently owner/operators so I left it on the General Forum too.


The state of cargo van expediting as I see it today.

Do I like what I do? Of course, I enjoy the business.

Can you make a living as a cargo van owner/operator?

It depends on your particular needs. Most of those who tout the positive aspects of cargo van expediting are folks who have a secondary income. My hat is off to those who stuck it out for 20 or 30 years in the same career and now are enjoying the fruits of their labor. To those folks, I say, keep on trucking!

Hence, can a non-retiree make it in this industry? Yes, but the criteria necessary is so stringent...very, very few ever really make a decent living. Oh, you might make your truck payment and cover your expenses, but I have not met one owner/operator who was actually putting any money toward their retirement and few can even afford medical benefits.

I have only met one cargo van owner/operator who fits the bill of being a financial success. So how does he do it? First, he is single. Second, he has no family. Third, his home is his van. So, how many of you are ready to live in a 32" x 70" bunk behind the seats? Well, at least you won't have a rent or mortgage payment. And think of the money you'll save on electricity, gas and water! Wow! What a deal.

Conversely, I have a friend who has been an O/O for 5 years. He had a straight truck for two years and has owned his cargo van for the past three years. He has a nice house, but he owes back taxes on the property. He makes his truck payment, but he owes the IRS and is on a payment program. His truck now has 260,000 miles on it and he has two years of payments left to go. One engine or transmission failure would probably cause him to file bankruptcy. He has no medical insurance and no retirement fund.

For all of you younger married guys, especially those with children, I would offer this suggestion. If the asphalt appeals to you, go get your Class A CDL first. Make a commitment to drive "Big Trucks" for at least 2 years. Most of the big companies providing free driver training will require that you remain employed for 12-18 months to defray the investment of training you.

Yes, you probably will start your career as an OTR driver, but a good driver should be able to find a regional or local run within 2-3 years. My daughter has a friend whose husband did exactly as I have suggested and after 2 years he is now home every night.

Save your money and when the kids are all grown, and you no longer have a mortgage and you have about $500,000 in a retirement account...then buy a cargo van and then enjoy life at a little slower pace.

 

[RLENT]

So why not just link from this thread to the other one ? ....... that way anyone reading gets the bene's of all the replies to the thread .....

 

[OntarioVanMan]

Quote...Save your money and when the kids are all grown, and you no longer have a mortgage and you have about $500,000 in a retirement account...then buy a cargo van and then enjoy life at a little slower pace.

Are you advocating for the RV type vanner???

The way i take it.....so all you guys in your 30's and 40's need not apply.....wait till your well set-up and then come out here and putt around because you don't need to hustle and hurry...or work at it...because your just driving to cover your green fees.

Relent, Turtle, Moot...you are all fired! *LOL*

 

[highway star]

I'm with the Rev on this one. If you guys are really making a good living, my belief is that you're in the minority. I hustled, stayed available, did all I could do. I wish I would have moved up sooner.

 

[OntarioVanMan]

I'm with the Rev on this one. If you guys are really making a good living, my belief is that you're in the minority. I hustled, stayed available, did all I could do. I wish I would have moved up sooner.

I'll give to the point that middle aged with bills and family and doing this solo...probably won't have to much to show after 10-15 years....

 

[Turtle]

Relent, Turtle, Moot...you are all fired! *LOL*

I'm not in my 30's or 40's. Not anymore.

 

[Moot]

I'm not in my 30's or 40's. Not anymore.

That applies to me also. Hey Turtle. Tee time is 08:00 tomorrow. I'll pick you up about 07:30. I like my coffee black. 30% off green fees with our AARP membership cards.

 

[RLENT]

Me either - I hit the big five-o earlier this year.

Moot .... I'll caddy.

 

[OntarioVanMan]

Golf....whack a little ball and go chase it....I'll wait for you guys on the 19th!!

 

[Moot]

10-4! Does that mean you're buying?

 

[OntarioVanMan]

10-4! Does that mean you're buying?

Sure does..I am the one makin all the money...remember???

 

[sullivandave]

40 somthg 4 vans, and no payments,and if the planets are in line,all drivers report,nothing falls off them we can just get buy. dave

 

[blackwood666]

Guess I am just short sighted?
Let me do the math:

0 payment free and clear cargo van (buy a used plumbing van with average of 60k to start E-BAY average 6-8k
gas engine 1 ton reg wheelbase
16 mpg current gas price average 3.35
Van Commercial Insurance 995.00 year
Oil Change 39.99 Syn on Sale


VS.
1700.00 truck payment (hmm unless you been around and own it free and clear)
6-10 MPG average diesel 3.90
Commercial Truck Insurance ???? I used to pay 2000 year
Oil Change 150.00 (used to be)


I Gross 1.00 per mile
Truck Gross 1.50 per mile (some make more yes, and some make more with a van)

Last year I Grossed 83,000
In a short wheelbase cargo van
Net was around 59,000 CASH MONEY so its equivelant to the 83 or more....
I got a portable sleeper a generator an inverter, and when it's real cold it's the motel (mom and pop type)
a laptop, a cooler and I'm set

I do Ok I'm not making 100k but for a vacation lifestyle I am leading gone 3 weeks outs never refusing a load and sleeping YES in the back of a van or in the front when I'm loaded with cargo, the life isnt that bad!!!
I may upgrade to a under 26GVW straight truck and use the Texas Sleeper upgrade in a 26 ft box with who knows but I will do a team and build out 4-5 ft of the box to build a comfortable area, but who knows it the frieght continues I will do better this year, my company has no problem keeping me busy long or short and my waits are few, I do TX alot and don't mind the East, I even have no problem getting out of Laredo or even Las Cruces, hell they even got me out of OK City!
REPUTATION FOR ON TIME
REPUTATION NO LOADS REFUSED
Dispatch will love you!
besides I stay very little in my van during the lay-overs, and often I go exploring around town see a movie or see the local club scene, so I dont need a Bentz Sleeper with double bunks
Micro, Sat TV.

 

[TJ959]

I passed the 60 mile marker a while back and I guess I must be a tourist type expeditor because I can't be in it for the money. After five years in this business, I still don't have most of the answers. I'll just keep taking my iron tablets and prune juice so I can keep up when I become a professional high dollar van driver.

 

[wimpy2006]

Rev. Dave:
You are truly a man of vision, your observation of the Expediting Business is on the mark.

 

[OntarioVanMan]

I passed the 60 mile marker a while back and I guess I must be a tourist type expeditor because I can't be in it for the money. After five years in this business, I still don't have most of the answers. I'll just keep taking my iron tablets and prune juice so I can keep up when I become a professional high dollar van driver.

Been 7 years now...and still not one of them...

 

[csands007]

With no major breakdowns and gross of 77,000 I cleared closed to 43,000 after "ALL" expenses including fuel , oil changes, tires, insurance, tags, cell phone and had 4 weeks off plus lots of weekend and have a cargo van, and 0 taxes to uncle sam due to miles, per diem and other write offs, yes this is not worth it guess I'll live on my retirement check in my van in Florida fishing.

 

[Hawkeye]

I have to agree with Rev. Dave. I own a 3/4 ton cargo van. Since I started in the business 11 months ago, I have been playing catch-up with all of my bills. I am 37 yrs old, married with 6 yr old twin boys, and the sole income. I try to send home as much money as possible, but there have been times that my wife has had to borrow money from her parents. Before I started in the business, I spoke with several drivers and they all told me that they were making $2,000 a week; now I know better. When the dispatchers call, I try to be polite and accept almost every load. My numbers are near 100% across the board. When I POD out of a load, I try to position myself in an area that should guarantee me a load the next day. Every time that my van has needed work, I have lucked out and had money coming in (i.e.: tax refund). I have no medical insurance (can't afford it) and no retirement fund. My wife tries to have a positive attitude toward this business, hoping that the next big load will come across my QC. To those that are thinking about coming into this business, please make sure that you can afford to do this.

 

[Turtle]

37, married with 6-year old twins, and the sole income, driving an expedited cargo van. Let me be as blunt as possible - get out of this business ASAP or you'll be divorced before you know it.

Never mind the fact that you need to be there for those kids, and your wife, the main thing is that mother of two wants and needs security for those kids. Love will allow her to accept you being gone all the time, provided you can still give her that security. But if you're gone and the security isn't there, she's got no choice but to look for other options. Money problems will strain a marriage enough, but with you gone on top of it, the marriage will strain to the point of breaking. Don't let that happen.

I have a feeling that you already know all of this, but it needs to be said, in no uncertain terms, for those out there who may be in a similar situation and are considering getting into this business.

 

[ATeam]

Before I started in the business, I spoke with several drivers and they all told me that they were making $2,000 a week; now I know better.

People who read a year's worth of Open Forum posts know better too, if they take what they read to heart.