When is a D is better than a C

[davekc]

Your posts were fine Greg

 

[Tennesseahawk]

geez, Greg. You're so sensitive!

 

[pjjjjj]

Well yes, I'm looking it that way... time is money. If you don't look at the bottome line and compare profit in relationship to time invested, what formula would you use to make an educated business decision ?

Many years ago I took a job, as an employee, paid on a basis other than time; the 'weekly' pay was just a bit less than what I had been earning, but in a field which interested me more; after awhile, factoring in how many hours it took to earn the weekly pay, it became clear that it worked out to peanuts per hour. For me, in my life at that time, it wasn't feasible to consistently work that many hours in a week for that amount of money;

There was also another 'employee', being paid on the same basis, putting in the same long hours, and he couldn't have been happier; from his perspective, he was doing something he liked, he had no family obligations, and he came out making more than minimum wage, which was what he was accustomed to earning.

I guess the point I'm trying to make is the same set of opportunities will be viewed differently by each person, based on their own criteria for their own individual circumstances.

Every aspect must be weighed to see if things make sense for any given person, and when his/her informed decision is made, the person can have the confidence to move forward without looking back, knowing he made the best decision for himself.

And to me, that's what this forum is for, to allow people to find the information they need in order to make those decisions, have the opportunity to learn from those more experienced, etc. So thanks for being here EO!

 

[LDB]

Ok.. looking at
fuel cost (with the best info I have found)... the D 22 ft diesel trucks gets 14 miles per gallon. The E 350 6L diesel van gets 25 miles per gallon.

I don't know where you found these numbers but in the real world you need to use more like 8 and 18 in your calculations to estimate costs. I'd have to ride along and see the fueling and calculations to believe 14 in a D unit ever happened and certainly if it did it was an aberration and not the norm.

I can't speak for all companies but at Panther the D unit makes 55% more per mile. The fsc is also going to be higher by I believe about 35%.

 

[ATeam]

The 2005-2006 FedEx Custom Critical revenue sheet (available from recruiting on request), shares the following information. It may be helpful to some in doing their C vs. D analysis.

(Wouldn't it be nice of all expedite carriers issued revenue sheets like this?)

Solo C-unit (Surface Expedite division only)

Revenue: $61,250
Miles per year: 67,839
Average per mile loaded: $1.74
Average per mile all miles: $0.91
Availability: 82%
Load Acceptance: 58%

Solo D-unit (Surface Expedite division only)

Revenue: $72,278
Miles per year: 66,732
Average per mile loaded: $2.03
Average per mile all miles: $1.11
Availability: 80%
Load Acceptance: 65%

Team C-unit (Surface Expedite division only)

Revenue: $140,426
Miles per year: 120,841
Average per mile loaded: $1.56
Average per mile all miles: $1.17
Availability: 69%
Load Acceptance: 64%

Team D-unit (Surface Expedite division only)

Revenue: $146,150
Miles per year: 119,950
Average per mile loaded: $1.67
Average per mile all miles: $1.22
Availability: 72%
Load Acceptance: 58%

For team-operated C and D units, the revenue difference is not great; just 4%. The "miles per year" numbers are virtually the same. While the "average per mile loaded" number is $0.11 per mile higher for D-units, the "average per mile all miles number is $0.05 higher for D-units.

These are fleet averages. Vehicles included in these averages were available at least 65% of the year. A particular team in the fleet will make decisions and act in ways that will place it above or below the numbers stated in the revenue sheet.

If the C vs. D decision is ONLY about the money, and you plan to run a dry-box, Surface Expedite truck, the revenue sheet makes the case for a D-unit purchase.

For a copy of the revenue sheet or more information about the numbers published therein, call FedEx Custom Critical recruiting at (800) 944-8690.

 

[tblount]

The 2005-2006 FedEx Custom Critical revenue sheet (available from recruiting on request), shares the following information. It may be helpful to some in doing their C vs. D analysis.

(Wouldn't it be nice of all expedite carriers issued revenue sheets like this?)

Solo C-unit (Surface Expedite division only)

Revenue: $61,250
Miles per year: 67,839
Average per mile loaded: $1.74
Average per mile all miles: $0.91
Availability: 82%
Load Acceptance: 58%

Solo D-unit (Surface Expedite division only)

Revenue: $72,278
Miles per year: 66,732
Average per mile loaded: $2.03
Average per mile all miles: $1.11
Availability: 80%
Load Acceptance: 65%

If the C vs. D decision is ONLY about the money, and you plan to run a dry-box, Surface Expedite truck, the revenue sheet makes the case for a D-unit purchase.

Excellent info. HOWEVER Revenue is "The amount of money that a company actually receives during a specific period." That is like total sales at a retail store.... which are over 90% higher than profit. If this were a retail store that $70,000 would end up being $7,000 profit or less.

AFTER you subtract operating cost from Revenue... you are left with profit. The operating cost of a D truck is double on fuel and triple on the vehicle cost and financing... and way higher on insurance.

Thes statistics also indicate that empty miles are equal to loaded miles since the average of "all miles" are half the average for "loaded miles."

I'm always suspicious of statistics.... they are like a bikini -- what they reveal is very interesting but what they conceal is VITAL !

$72,000 is WAY better than $61,000 ONLY if FedX is paying all expenses and providing the truck and fuel. I doubt they are... I have never seen them advertise that they are paying drivers $1 per mile to drive their trucks. ...they are paying you about $1 per mile to driver YOUR truck.... and if you have to pay $190 per gallon MORE for fuel than the C needs you have to give up $9,769.80 MORE for for fuel to cover that 72,000 miles in the D truck... and your D truck cost 3 times as much. How do they ever get anyone into a D truck?

Also, these statistics show that D loads only pay an average of 14.285% more than C loads... NOT 35% higher as some drivers have said.

I'm being more and more convinced to run from the D truck. That may be why a company is trying to sell 50 of them on eBay.

 

[Dreamer]

AFTER you subtract operating cost from Revenue... you are left with profit. The operating cost of a D truck is double on fuel and triple on the vehicle cost and financing... and way higher on insurance.

tblount, I've been trying to follow you, but I'm lost. Why would you think a D would be double the fuel of a C? Are you thinking a FedEx C unit is a Sprinter? Just for clarification... they are not. Most current C-unit's with FedEx are the same truck as the D-units.. just a smaller box.

For example... some are full size class 8 Volvos, KW's, Pete's, etc. Operating cost would be all most identical... running them as a C only offers a larger sleeper.

Dale

 

[jaminjim]

clueless ???/

 

[jaminjim]

tblount: In this thread you have talked about a moving company, a roofer, and now a department store. Also talked about looking at truck on ebay, along with "C" trucks getting 25 mpg, "D" trucks getting 14 mpg, and making $2.97 per hour. Please tell me that you don't work for the DOT, IRS, ATF, or a trucking company?

 

[Doggie Daddy]

Yeah,he had me confused also....but then again,that's not hard to do.DD.

 

[tblount]

Ok... I don't know what I'm talking about. I was told that an Econoline 350 cargo van was a class C vehicle . Apparently it is not. Since the E350 only has about 8 ft of cargo space and can carry ony 3,000 lbs it would be class A.

This page finally cleared it up for me:
Expedited Freight

For anyone who can't get the link, here is part of the article:

Expediter drivers make money through higher rates, but they spend more time sitting. Expediters can wait for days if they end their runs in places where the freight ain't; while that's not unusual in trucking, it happens more often in expediting. Wise operators learn where the freight is running - almost like fishermen following their prey - and get there to be in position to grab the next load.
In any case, people more concerned with financial success than self image tend to enter the expedited freight business. Some folks find that it's a cheaper way to see the country - or at least the industrialized part of it, as few loads go coast to coast - than owning a motor home. Many of them come from other lines of work and are new to trucking, so are not as impressed with huge equipment.

Most current C-unit's with FedEx are the same truck as the D-units.. just a smaller box.

When the guy started this thread why didn't someone just tell him they were the same?

 

[tblount]

You seem to use "C" units and "Van" interchangeable, are you currently in this industry?

No, I owend a moving company for 6 years but I only had a freight load about once a month and that was usually between ships and trucking terminals.

I sold my airplane a while back and was considering purchasing a truck and getting back into driving. I'm 56 and construction work is more physically demanding than it used to be. I'm looking for a cushy job, riding around in a small truck or van... telling lumpers to hurry up and get the load off... I got to go!

I hold a class A CDL with hazmat and tanker endorsements but without current tractor trailer experience I can't get a job without paying a company $500 and driving 2 months for free and 1 more month for 11 cents an hour... then 32 cents a mile for the next year. By the time I get up to decent pay I woun't be peeing in milk jugs... I'll be wearing depends.

 

[tblount]

tblount: In this thread you have talked about a moving company, a roofer, and now a department store.

Perhaps I'm a poor writer. I was pointing out that when a company tells prospective owner/operators their total average revenue is $70,000 ....the driver had better NOT think they were being told they would be taking home that kind of money... the Devil is in the details.. from that $70,000 the owner has to pay for his truck, fuel, insurance and maintenance and AFTER those expenses, the leftovers become his income.

Also talked about looking at truck on ebay,

The point is this... if you see 50 used expeditor trucks coming onto the market at once, what do you think is the most probable cause?
A. Someone stole them.
B. They were confiscated by the DEA.
C. Business got slow, overcrowded and unprofitable for this sector of the trucking industry.

along with "C" trucks getting 25 mpg,

My mistake... I should have said "A"

[quote/"D" trucks getting 14 mpg, [/quote]

I researched several sources. What mpg do they get?

and making $2.97 per hour.

That was someone else.

Please tell me that you don't work for the DOT, IRS, ATF, or a trucking company?

I'm just a gigolo, everywhere I go
people know the part I'm playing
paid for every dance
starting each romance
oh what their saying

And there will come a day
And youth will pass away
What will they say about me

When the end comes I know
They'll say just a gigalo
Life goes on without me

 

[nobb4u]

In reply to your question I feel having run a D unit, a C unit, a DR unit and a CR unit, it all comes down to who you are hauling for as an example, if you are in FDCC White Glove I see no real difference in CR and DR loads but expenses are lower in CR, only 6 wheels on ground, lower registration cost (33000# vs. 47000#) lower tolls. But with that said if you are not in White Glove then you want to go with the biggest baddest D unit you can manufacture because you want to be able to haul anything that comes across the board. I would never saddle myself with a C unit in Surface Expedite.