Reefer Rates

My thought is I'd be all over that load..... Round trip, (no deadhead), paid weekly, shipper has tremendous consideration for you as the carrier.... a steady round trip...That's the kind of load that o/o's can feel real security with, that's the customer freight I was referring to in the other thread.... My only other question would be, "how many of these weekly loads does he have?".. it sounds like maybe only one... or two. Repeat business is worth cultivating, and this sounds like a good deal. Sure, you can whack someone with a steeper rate when they're in a jam, but this isn't that... this is someone offering a regular gig.... You said that he emphatically will not pay the higher rate, and he divulged what that rate is, ($3.40), you could counter with an offer of $3.20... but you'd be risking losing it over .08 cpm.. Me? I'd take that rate and work on the customer service, get them loving me, and then nibble upward on the rate over time..

 

Cheese out of Wisconsin? Who knew?

 

Sounds like a good run Bill. Is he offering it to you at a year round rate tho?? And you also have to remember that fuel had already reached upwards of $4.25 in the WI/IL/MN area. My guess is that's why the other guy wanted to raise his rate. Hauling the same product for rates he was 2 years ago isn't a good plan unless fuel had stabilized, but it hasn't.

But I do agree, I'd take it and work on making them love your company and drivers. Once your in, and things are going good, you can always try to negotiate better terms in say a year or two. And the up side is that if fuel and other costs go thru the roof, you can just pack it up and go play somewhere else.

 

I don't know what it costs to run a reefer, so it is hard for me to take that into account. Let's say the reefer burns 2 gallons per hour. You are able to drive 60MPH. Use $5.00/gallon, and that equals .17/mi. Reefers are also expensive, so lets add .10/mi for the cost of the trailer bringing us to .27/mi. Current FSC is in the vicinity of .60/mi. So this shipper is paying 2.27/mi + FSC + reefer cost on all miles. Most truckers have costs in the neighborhood of 1.20/mi + FSC. So this run should have operating profit in the vicinity of 1.00/mi. I am not sure how anyone feels that is a cheap rate.

I might even buy a reefer trailer if someone approached me with this type of no brainer.

 

I would buy some reefers and jump all over it if I were you

 

Gallon an hour is what we figure to run a reefer at 35 degrees

 

It also depends on the outside temperature.

The reefer will use more fuel at 90F to cool to 34 than it will from 40F, for instance.

I'm running a 40F load and it's been about 30-50 each day. I used 10 gallons in 24 hours (fillup to fillup).


I have a brand new reefer, and even at the hottest, with the coldest load (-20 for ice cream), and I've only used one gallon per hour. But, that's a brand new reefer with a brand new trailer.

The trailer ends up equaling $184/week for me (trailer and reefer unit). Since I'm a single truck O/O, I just lump all maintenance together at 30cpm and have a pretty decent cushion (I own my tractor outright, so that's why my maintenance money is higher than others might).

 

Wichris, you are one hundred percent correct about first district paying well. The problem is that Marten, Roehl and Martin Milk have it pretty much sewn up now out of there. This will happen at this cheese plant as well if allowed to.

 

I compete with them all the time. Martin Milk can do pu one day and deliver the next,Marten and Roehl are pretty much pu week of and del week of,which eliminates many of the loads.

 

With rates like this I may just start running north instead of south. All this 3.40 a mile for 1000 miles. Now does this 1000 miles take all week or is it done overnight??? That's a question. How long does it tie up the truck for? As far as the reefer running. Start stop on cheese Is fine. Your certainly not gonna burn a gallon an hour that way. Heck I run 0 loads in 75 degree weather and my equipment doesn't work that hard. And I have an old trailer. At any rate. Good luck with your decision bill. Let me know if ya need any help. I'd try it once or twice.