Starting Out Choices: Reefer/Van or Flat/Step

[SickRick]

This has probably been covered in some offhand fashion already, but WTF...

Gearing up to get rolling in 1/2010 - still as a newb with 500 mile coverage from Progressive out of the Panama City area of Florida (furthest NW I could get in Florida and still have Miami - my home area - in the radius).

I've been "demo-ing" some of the load boards, just to see what loads and routing look like in the radius. Obviously, South Florida SUCKS - but I can run roughly Miami, Beaumont, Little Rock, Louisville, Winston/Greensboro and everything in between - not bad to start out.

It was suggested to me by friends to start out with a 53' Reefer, for the versatility of running reefer or van with the same box (even though a broker friend out of Huntsville told me she doesn't load dry in reefer boxes). There seems to be a fair amount of loads for Reefer/Van in the running area. OTOH, there appear to be a LOT MORE Flat/Step loads in the same area - in some regions, almost 2 to 1.

Since I'm just starting out, obviously I can only afford to purchase/insure/maintain ONE trailer. Being a somewhat LAZY **** (being fat will do that to you) - Reefer/Van looks like way less actual WORK. As opposed to Flat/Step requiring strapping/chaining/tarping loads EVERY TIME, as well as an more of an expense in ancillary gear (chains, straps, tarps). Though I can honestly say (even though it resembles WORK) I am INTRIGUED by running a flat/step rig. There also seems to be MORE Flat/Step loads on the boards, and they also appear to PAY somewhat better than Reefer/Van does.

Looking for some opinions/discussion on which might be better type of freight to start out with, given the current economy and my newb-ness. I've studied up on the FMCSA loading guide and other materials for flat - obviously that's NO SUBSTITUTE for training (that I will NOT GET running my own authority as opposed to leasing on - which I can't do for lack of EXPERIENCE).

To recap my situation (from previous discussions), I live in S. Florida (nearly impossible to get a recent-graduate-company-hire from here). I still have a computer business, that, while it's off some 75% in the last few years due to the economy (and I'm burnt out after 30 years) still nets me some $3K a month - which I could STILL DO - running 3-4 weeks out and 1-2 weeks home. With the logistics issues, the best option at the moment appears to be buying a rig, running the 500 mile radius until I have enough time OTR to get 48 state insurance or lease on with a LandStar (or other arrangement). This will give me the flexibility to continue being based in S. Florida, continue getting some income from my computer business ($3K a month for a weeks work is tough to just WALK AWAY FROM), yet get out on the road and start logging some MILES...

Thanks to everyone here for their patience, help and suggestions...

Rick

[GMAN]

Without recent experience I think you are heading in the only direction you can unless one of the major carriers will pick you up. As you have found, options are limited considering your home. I would expect that there would still be some carriers who would consider hiring you. Vans and reefers are usually less physically taxing than flats or steps. Other than logistics straps or bars, there isn't much else you really need to get started. Tarps, binders, etc., will run you about $2,500 in addition to the cost of the trailer, should you decide to pull an open trailer. Not having any experience in that area, you will need to find a way to learn what you need without the benefit of working for a carrier who will train you to tarp and chain. Flats and vans are different animals. Van rates are pretty flat according to most whom I have spoken. And checking the loadboards for vans I can attest to most of those type loads not paying well. You will have greater flexibility pulling a reefer. It may be a challenge being restricted to the Southeast, but it is only a year until you can expand your service area. You may find nursery stock coming out of Florida with a reefer. During produce season, you could also pull that out of Florida. If I were starting out in your position, I think that I might go with a van. The main reason is the lower cost of entrance. You can find a decent van in the $2,500-6,500 range. A good reefer is likely to cost much more. And if you plan on going into California, you will need to either buy a newer reefer or plan on retrofitting an older unit before being allowed to haul in or out of California. Pulling a reefer, you will probably want to run the West Coast. There is one other consideration when thinking about pulling a reefer and that is insurance. Not all insurance companies will write cargo insurance on a reefer. Before making your final decision you may want to check with insurance companies to make sure you can obtain affordable coverage.

[teamster]

I have a 1994 great dane reefer I might be looking to sell in the Tampa area for cheap. If you decide to go that route let me know. You can make good money pulling produce out of south Florida, but you will have to get your radius expanded to be able to get it farther north. Good luck.

[Scottt]

Did you try Truckers Insurance to get coverage? Truckers Insurance

A friend of mine bought a truck while we were still in school and he didn't have a problem getting unlimited mile coverage. It was a little pricey at around $700 a month from them.

I have been thinking about getting my own authority and I called them this week about coverage and got a quote of $542 a month. I have just a year of experience.

[SickRick]

Did you try Truckers Insurance to get coverage? Truckers Insurance

A friend of mine bought a truck while we were still in school and he didn't have a problem getting unlimited mile coverage. It was a little pricey at around $700 a month from them.

I have been thinking about getting my own authority and I called them this week about coverage and got a quote of $542 a month. I have just a year of experience.

I've pretty much called EVERYONE, but I'll give these guys a shout in the AM - thanks for the heads up. If someone (for example) had a CLASS B license, and recently got a CLASS A - the CLASS B CDL ISSUE DATE would still show up as the license date (which is what the insurance companies go by). I've been quoted $16K from Progressive (from Ft. Lauderdale, which is USELESS), $13K from Jax, and $10K from anywhere in "the sticks". So $700 a month would be a BLESSING. But there really is no way, unless for example you can document previous experience (even though you might not have had a Class A at the time) where I've seen someone get underwritten for 48 state. Obviously, finding 48 state even if it was significantly MORE than the $10K I'm planning on getting from Progressive - would be worth the extra $$ to open up my load possibilities.

GMan: yeah, I was looking at those "drawbacks" to flatbed - the biggest one (aside from it actually resembling WORK) is the TRAINING for me. The extra equipment expense, would probably be less than finding a decent "retro-fittable" reefer. I'm an EXTREMELY QUICK STUDY, but would be much more comfortable getting TAUGHT flatbed by someone experienced, rather than doing the trial-and-error of being self-taught (where mistakes can get EXPENSIVE). There ARE a couple of companies I could have gotten orientation dates from down here with, but the length of training (running team) and the logistics of home-time (that would be more profitable than my road time) kinda ruled those out for the moment.

teamster - '94 reefer probably has a few more miles/hours than I'd be looking for to start - but thanks for the offer...

Rick

[BigDiesel]

10 grand for insurance with only a 500 mile radius?!?! That puts you behind the 8 ball right out of the gate. I hope you will own your equipment outright and have 10 to 20 grand in cash or available credit AFTER start up costs and equipment purchases. If you don't, go to work as a company driver or lease on to a carrier. Learn the industry on someone elses dime.

[SickRick]

10 grand for insurance with only a 500 mile radius?!?! That puts you behind the 8 ball right out of the gate. I hope you will own your equipment outright and have 10 to 20 grand in cash or available credit AFTER start up costs and equipment purchases. If you don't, go to work as a company driver or lease on to a carrier. Learn the industry on someone elses dime.

Thanks BigD. As I've elaborated - the company option, while the SMARTEST and most COST EFFECTIVE, isn't really one that's available to me right now, for a number of reasons. If I want to get rolling before late 2010/early 2011, I'm gonna need to start out O/O. I'll have enough cash/credit to start out right, or at least not at a "recipe for failure" level, thanks in great part, to the information I've gotten on this forum regarding calculating overhead, operating expenses, etc. And unfortunately, showing up with my own truck and trying to "lease on" isn't going to get me very far (or make it any easier) either, due to the lack verifiable experience. If getting a company driver hire out of S. Florida as a recent school graduate is difficult, I can't imagine just changing the equation by showing up with my own truck is going to make it any easier.

I'm not just some bonehead that wants to buy a truck and "do it my way". There's a ton of research and soul-search that goes into every phase of the planning and decision making process. I could get down to the wire, just bury my startup $$ in a coffee can, and put things off for another year - if I can't pull this off in the safest/sanest manner possible. My "budget" allows for paying 50-60% of my yearly insurance costs up front (to minimize the monthly nut) and also starts out with a separate $5K maintenance account right off the bat - with weekly self-imposed additions to the maintenance account to bring it to a $10K level. I could go "all cash" for a tractor/trailer, but plan on financing about $15-$20K to allow allocating some of my cash resources to paying insurance, maintenance account and a couple of months operating expenses. While I'm usually one to rush headlong into a new adventure/business, I'm treading much more carefully into this one.

My computer business, while only 30% of what it was before the economy crashed (I know, join the club), is still viable enough to keep going with - just that I'm pretty burnt out on/by it - actually, I HATE IT, but I am very good at it and it does pay the bills. But who wants to get up every day and work at a profession they CAN'T STAND anymore? My loyalty/dependance to one particular long-term client (30 years now, went to high school with the senior partner) is really what's keeping me from walking away and just starting from scratch. I'll make as much from them, as I would going entry-level as a company driver the first year, which will enable me to make the transition into trucking 100%, a gradual one (versus putting everything into storage, dropping out of sight and living in a truck and motels for the first year or two).

I'm looking at getting rolling January/February, so there's still plenty of time to research, make decisions, amass $$'s - or just say "screw it", do a refresher, walk away from my home, friends and clients, relocate to Atlanta and go out as a company driver. Nothing is written in stone at this point.

The purpose of this thread was to get some feedback on whether to start out Van/Reefer or Flat/Step. Again, I find the "challenge" of Flat/Step work intriguing, and it's really captured my attention - but the "easier/softer" way of Van/Reefer is likely a better place for a rookie to start...

Rick

[Scottt]

Plan for the worst and hope for the best.

I bought my truck outright with cash and THOUGHT I got a good deal. Truck had 500,000 miles on it when I bought it and in the first 6 months I spent $23,000 in repairs and tows. Something broke my first 5 trips, air cooler, clutch, ac compressor, turbo, EGR valve, clutch fan, air compressor, and I put 10 new tires on it. I also hit a deer that cost me $2,000 in deductable and touchup I wanted done while they had the paint mixed.

If I wouldn't of had the cash to fix it I would of been done before I really got started.

[LOAD IT]

Sickrick, Get a 53 reefer, you can run Florida produce, nursery and juice, move up into Georgia and you can run poultry, bakery, and produce back to Florida. Regional is where the money is. You may go broke faster running longhaul, the larger rates look enticing but beware.

[heavyhaulerss]

but would be much more comfortable getting TAUGHT flatbed by someone experienced, rather than doing the trial-and-error of being self-taught (where mistakes can get EXPENSIVE).



trial & error can get you & or some one else killed pulling flat. it can also land you in jail. I'm glad you are looking to get some training, if you pull flat.

[Kranky]

Starting Out Choices: Reefer/Van or Flat/Step

Dump truck.

[heavyhaulerss]

DO NOT go with flat or step deck! I have enough competition already. j/k good luck whatever you choose..