So, maybe someone with a good head on his shoulders has something good to say that make sense. I have a 1999 Wabash 48' trailer with a TK-Whisper SB-III Reefer. It's a good unit with no problems, but the Reefer law coming to California, and as I understand it soon to be adopted by Arizona and Oregon and other states as well, I'm thinking I have a few different options.
As a general background, I've been working Coast-to-Coast reefers for a good few years and about 17 years of general trucking experience. I've opened up a brokerage business and soon looking to get it off the ground, but not really looking to keep the equipment too much longer, or at least until it makes sense to keep a driver employed and make a little money from it to survive while getting the truck brokerage going.
The options I have to stay in business are:
1. I can invest in my current reefer about $6,000 - $7,000 and get some kind of a filter (a friend told me about this, but Thermo King does not confirm this) and this would supposedly make me California Carb-Compliant.Pros: Least cost investmentCons: Not sure how long it will make me compliant and not sure if available
2. I can invest about $8,500 - $10,000 in a new 2009 engine to replace in my current unit (This DOES NOT replace the whole unit such as compressor and other peripherals) This would make me Carb-Compliant until 2016.Pros: I would stil be in my niche of expertise, and it would make me compliant for a good amount of years, and I know my equipment is in good condition.Cons: I would still have an old unit, and a 48' instead of a 53' and eventually I would spend close to if not just as much possibly more than I would if purchasing a 53' reefer.
3. I can buy a used 53' Reefer even if immediately or eventually I will have to upgrade the unit. The cost can vary between $20,000 - $40,000Pros: I would be able to haul more freight and more companies are hauling in 53' Reefers, as well as the productivity factor of additional LTL freight I could add to supplement my TL rates.Cons: High upfront investment for the amount of time I think I will still be in business. I don't know what type of equipment I can find in the short amount of time I have left to do so (until July 17, 2009) I don't have too much cash and don't want to finance either a new trailer or very expensive one, because I don't want to stay in debt.
4. I can buy a dry van for anywhere between $7,000 - $10,000 in decent shape and start a new niche.Pros: No more Reefer headaches. No more watching the temperature. Lower Insurance rates. Less mainenance costs.Cons: Lower rates overall. I need to find a niche. I don't have client base for this equipment.
5. I can buy a drop deck but the pricing varies so much as $16,000 - $25,000 for used equipment, and I'm not sure what type of money can be made, but I hear lots are doing good in this niche.Pros: Good potential money can be made in this niche (as I heard) Lots of freight can be hauled on this, including some produce, machinery, cars, oversize, lots of options. I'm not sure on maintenance, but imagine it can't be more than a dry van.Cons: High initial investment. Higher insurance rates even than Reefer. Higher liability.
In general, I am thinking if they start to really enforce the California Reefer laws, three things would happen:1. Lots of demand for reefers with CA-compliant units and they will pay a premium for that.2. Californians will starve themselves from the rest of the country, and maybe they will lift this law.3. Many truckers will go out of business, which again will open new doors for people with compliant units, where more money will be poured since the laws demand it, therefore may be a good market to stay in.
Somebody help me!! What should I do. I'm looking for informative answers, not short smart remarks. If you know something please share with me and the other readers. Is there something I don't know or I should be made aware of?
Where do I go from here. Both, my father and myself are looking for the answer in which direction we need to go from July 17th on forward.
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It sounded like you had a hard time narrowing down your choices. Any updates on what you chose? Well, if you are still on that decision road, my advice is to determine which states the trucks would pick up and deliver, and what are the laws governing these states. Each state has a specific law on delivering goods and the type of truck that should be used. By determining these important facts, you can narrow down the choices, and pick the one that passed the laws and regulations.
Regards,
Odessa Coldiron
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