How Much a Dry Van & Reefers Can Earn in a Year – Real-Time Calculation

DRY VAN AND REFER OWNER OPERATORS - YEARLY REVENUE

The trucking industry plays a vital role in economic stability and growth in the United States and around the world. In 2019, many carriers experienced reduced revenue streams due to falling demand and reduced freight rates precipitated by lessened shipping volume.

DAT, a Portland, Oregon-based freight marketplace platform and information provider, recently reported that spot market Dry van and Refrigerated (reefer) rates came in at their highest rates in 11 months in December, with spot and contracts truckload freight volumes seeing a mild decline.

DAT said that the late-year spike was likely spurred due to the result of inventory management by e-commerce vendors with a keen focus on delivery speed. And despite these companies not representing the same truckload volumes as to the more traditional retailers responsible for more than 80% of holiday merchandise, creating more urgency on the spot market.

Dry Van and reefer rates each saw $0.12 per mile increases in December, with vans at $1.94 and reefers at $2.30. Flatbed rates came in at $2.17 per mile, which rose 7 cents over December, marking the second-lowest tally of 2019.

On the volume side, Van volume was up 14% annually, reefers rose 9%, and flatbed volumes were off 0.8%.

Average Results

**Approximate figures

Machine generated alternative text:
Su mmary
Fuel
Depreci ation
F ixed Costs
Driver
Tv re 5
Maintenance
Service
Total Cost Estimate
Pe r Ann um
87,284.33
69,975.00
98,27189
22,27320
23,046 oo
19,251.00
320,101.42
Per Month
7273.69
5831.25
8189.32
1856.10
1920.50
1604.25
26675.12
Pe r Work Day
316.25
253.53
69.75
1123.93
Pe rce n Cost
Factoringc05t i56%. It variesfromstate tostate and load.
I rsuranze not included

BENEFITS OF OPTING FOR TRUCKING DISPATCH SERVICE: –

A truck dispatch service helps owner-operators manage many of the back-office aspects of running a trucking company. Some freight dispatchers provide end-to-end services, managing everything from finding the loads to ensuring shippers pay their invoices on time. Other dispatchers specialize in certain other services. Most dispatchers charge you either a flat rate or a percentage of the load.

Let us look at the Pros & Cons for opting Dispatch Service: –

1. Finding loads

2. Assigning loads and managing drivers

3. Maintaining motor carrier compliance

4. Managing weather delays | handling issues

5. Providing customer care

6. Handling billing paperwork and collections

Fortunately, we do not have any cons for Dispatch Service.

Will dispatch service help your trucking company?

Yes, the right trucking dispatch service/ company can be an important entity in helping you to run a successful business.

One of the major reasons that owner-operators fail in their first year is their inability to find loads while running a trucking company. Managing the back-office tasks of a trucking carrier is very time consuming, hence opt for the right trucking dispatch service. The wrong one could put you out of business in a heartbeat.

If you are going to use a dispatch service, consider the following too: –

1) Get recommendations – Ask your fellow truckers/drivers, owner-operators about the carrier they use. Check the benefits.

2) Determine what services you need – Be meticulous about your requirements. Note down all the points.

3) Understand all costs – What’s the end to end cost for dispatch service and your cost? Use this number to determine what is the lowest that you can charge to cover all expenses. This calculation helps you and your dispatcher determine if a load is profitable enough to be worth pulling. Keep in mind that some dispatchers may ask that you quick pay them, adding to your financial challenges. In this case, you may be able to finance their payments through factoring.

WHAT IS FACTORING AND HOW IT WILL HELP YOU?

Running a transportation business is costly. Cash flow crunches happen to even the most successful transportation businesses, especially when many brokers and shippers pay on 30, 45, or even 90-day terms. Transportation factoring services solves that issue along with many others.

For owner-operators and small to mid-sized trucking companies, cash on hand can be the difference between staying afloat and sinking into debt. Cash is essential to taking on new opportunities and clients, keeping trucks on the road, and maintaining your fleet.

How does it work?

It is a very simple process:

  • Driver hauls and delivers loads 
  • Truck driver submits a copy of freight bill to the transportation factoring company for verification
  • Factoring company pays the driver within 24 hours
  • Customer sends payment to the transportation factoring company

Every trucking company is different. Find the company that meets your requirements and unique needs.

METROMAX DISPATCH – HOW WE CAN HELP YOU SCALE?

Scaling new heights and delivering impeccable service round the clock has always been our motto.

Cost of doing business with most of the dispatching companies, as per the industry standards, is approximately 7%- what sets us apart – we charge a nominal fee of 3%, which is 4% less than the current rate. Incredible, right! Again, we ensure that we provide the best rates without compromising on quality, which is our core competency.

Metromax dispatch provides 24/7 support and we handle your billing & invoice with so much ease that you never want to stop working us. If you ever feel like delivering the load and not factoring it – no worries, we got you covered. Just follow the basics -Pick up the phone, login into our app, let the driver take a picture, and upload it. Our back-office team evaluates it and submits it to the factoring company, who in turn processes the payment in less than 10minutes. All this happens while you enjoy the rest time – another reason to be a part of the best dispatching company in North America- that’s Metromax Dispatch. Heart of Perfect Trucking!

Advantages of choosing Metromax Dispatch: – 

  • Lowest Factoring Rate 
  • No Contract 
  • Round the clock support & a Personal Dispatcher
  • Shipper & Broker Communication
  • Bookkeeping
  • Freight rate negotiations
  • Full Transparency & Free Business Consulting
  • Use Trans flow to keep track of the Loads

We take care of your shipment in the best possible way and to achieve this, we have a big fleet of Refrigerated, Dry Van, Flatbed, Power only, and Car hauling trucks. Our round the clock support ensures a hassle-free transaction, with minimal formalities. This is another reason why Metromax dispatch is considered as the best Dispatch service for Owner Operators. Another factor to look at is “Shipper and Broker Communication” where we handle all the phone and written communication to the shipper and broker concerning load status updates, change of plans, or any additional paperwork on behalf of the carrier.

Always choose the best Trucking Service Provider and remember, MetroMax is just a call away!

Source: https://www.logisticsmgmt.com/article/spot_market_dry_van_and_reefer_rates_finish_2019_on_a_high_reports_dat

Trucking Industry Statistics For 2020

Should Owner-Operators Use a Truck Dispatch Service?

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest
Share on email
Email

Looking For a Dispatch Service? Well We Offer it Just @ 4% Per Load with NO CONTRACT Sign | 24x7 Support| Dedicated Dispatcher| Billing Support

Leave a Reply