So you want to "own " your own company

Being an O/O is one of the few ways I have ever found to go broke, and be proud at the same time.

 

TMC is a great company. I have interviewed a couple from there and if they are not BSing me they are making good money. And with flats you want that percentage program.

I couldn't see you making more money with LS than at TMC. Don't they pay O/O's like 80%? Going company flat to LS van would be a huge pay cut, I would think.

Good luck on the house. If this is a long-term purchase this is the right time.

 

Hi guys.
I was all over this thread for a good info !

I am hauling cars for now. They pay good enough, but all this headache with customers and keeping trailer loaded makes me think toward the freight.
I'am from Chicago area.
Looking for reefer or dry van - not sure yet. What is the best to start with ?
I have my own authority and will be getting loads from loadboards.
I just registered on GetLoaded and was looking for loads going from and to Chicago, looks like there is plenty of loads , but there are no prices on there, i have to call and ask. So I was just wondering if any of you know price range per mile for reefer or dry van loads?

 

Reefer trailers give you the option of hauling dry freight too, which gives you more options for loads. Not all places will load dry freight on a reefer, but that has to do with weight most of the time. My hubby runs reefer, but has hauled shingles, paver blocks, paper, canned goods, and other stuff too.

If you get a reefer, my hubby says Utility are best, as they are lighter. One with vent doors is a good option for some loads. He prefers Thermo-Kings, but some of the newer Carrier ones are pretty good too. And, make sure, if you get a reefer, and plan on hauling bulk spuds, the trailer does not have deep grooves. Bulk spuds can pay pretty good too.

If you know your operating costs then you know what the minimum rate is that you can haul for. That's the big key, is knowing your operating costs.

 

My operation cost would be around $1.10
May I average ~$2 ?

 

As long as you find the right brokers and have a good safety rating you should be able to average that. Get in with a good broker and give them reliable service, and they'll keep you moving and work to keep you happy. The broker that my hubby deals with through his company just requested him for specific runs a couple of weeks ago because of the fact that he gets the job done on time and without drama.

My hubby is a company driver, but gets paid percentage, so we know what each load pays. The stuff he hauls averages a bit less than that, but he pulls out of Florida a lot, and stuff coming out of Florida usually doesn't pay as well. The stuff he hauls into Florida pays much better. Winter & early spring are the busier times in Florida with produce.

With van and reefer freight, some of the areas for pick up don't pay as well, but you find the right stuff into that area, and it balances things out pretty well.

I know some of the bulk spuds pay pretty darn sweet. Being in the Chicago area, you're actually in a good location for running bulk spuds, a lot of which go to potato chip plants. There's also a lot of dairy coming out of WI, which pays decent.

Pickles and certain other loads out of Florida pay really well, but it's a bit of work to get those loads. The pickles are a PITA though, as you can end up sitting for days waiting for those loads.

The one thing about having a reefer, is that there is always refrigerated freight that needs to move, since that is mostly food stuff. Even in a crap economy, people have to eat.

 

Like was mentioned above, go with a reefer, gives you way more options.

Maintaining the reefer will add some additional costs, it helps if you know a thing or two about reefers and how they function to troubleshoot them.

As far as TK or Carrier, they both have pro's and cons, can't lose with either one. I have found TK's to use less fuel, and overall cost less to operate, if that helps.

 

The rates will depend on where you run and how well you negotiate. I have heard of some reefer people who will run the left coast and get $3/mile one way and $0.70/mile the other. During produce season you should do pretty well. There are some brokers who only do produce. You should be willing to follow the produce, if that is the segment of the business you want to deal. I have spoken with some who do well with meat on an annual basis. There are other things you can haul in a controlled temperature environment than food that pays very well. You may not be able to get into some of those segments until you have established yourself for a while. As someone else mentioned, you do have the option of hauling other types of freight in a reefer. There are some shippers of dry freight who won't load reefers due to potential damage to the chute or weight. I have a friend who pulls a van under his own authority. Rates have dropped somewhat, but he is still averaging close to $2/mile for all miles. He stays in good freight lanes and manages to be home every week. I would expect that you should average from about $1.60-2.25/mile. I have no doubt that you can find plenty of freight for under $1.50/mile as long as you are willing to haul it.

One advantage of hauling dry freight is that you don't usually need to do much deadheading. A good reefer is not cheap. You will need to buy a new or newer unit if you want to pull out of California. Insurance will be more expensive on a reefer than a dry van.

 

Lilbit can say run reefer because she is not making those 3 am appts at places that you can't park at with nearest TS 2 hours away and lumpers that charge like they are brain surgeons and work like a hung over entitled teenager with managers that look at you like you are something that they just stepped in.

And that's one of the good one.

 

I'm not doing it, but I still have to hear about it. My hubby runs reefer, and you can bet you bottom dollar that I hear about all of the headaches!