5 Things to Know: FedEx P&D | Paradise Insurance

If you want to run a FedEx Ground P&D Routes business but don’t know anything about trucking and shipping, then getting started can seem daunting.

However, by the end of this book, you will have the basics to make smart decisions. That said, let’s get started:

FedEx Requirements for P&D Trucks:

  • Color must be white with FedEx Contractor Name and DOT Number.
  • All doors should have locks
  • Depending on the type of vehicle, some special requirements must be met.
  • Must have VEDR (Video Event Data Recorder)
  • If you choose a brand promotion, then there will be FedEx Ground decals according to the brand’s preferences.
  • Depending on the type of vehicle, certain shelf requirements must be met to protect the package during transit.

Tips for Choosing the Right P&D Vehicle:

  • For long distances, use diesel
  • Older cars will require more maintenance and repairs; go to the new one
  • Add more protective equipment
  • For the best stops, go on the train
  • Do not go for broken gas vans as they increase inefficiency

P&D Car Repair Cost:

Commercial P&D vehicles are MUCH more compressed than normal vehicles, so it makes sense that premiums are higher. These vehicles are driven hundreds of miles every day; their doors are opened and closed many times a day, and they carry loads of cargo over miles.

All these factors cause a lot of load on all of their parts, and as a result, it costs more to repair or maintain them than regular cars.

If you use Step Vans, then the cost of payment can fall in half $8,000 and $12,000 per year. However, if you use cheap or expensive vans, you can expect to pay more than this for maintenance.

P&D Vehicle Life:

Commercial vehicles can go up to 300k miles before needing maintenance. But if we talk about gas cars, you can expect major repairs after 100 kilometers and cheaper engine replacement after crossing 150k miles. Engine replacement costs can exceed $10k.

Other repairs like rebuilds and transmissions can set you back $6k+.

For diesel cars, you can expect a rebuild after 200k miles. Cost can exceed $12k if rebuilding is necessary.

Due to the high cost of maintenance and repair, we always encourage P&D companies to follow a regular replacement schedule because running an old vehicle costs more than replacing it with a new one. Here is that schedule:

  • Drive diesel vans for up to 400,000 miles or 4-5 years with one rebuild.
  • Gas powered vans should be replaced when they are 4-5 years old or at 400k mileage and have two engines replaced.
  • For regular vans and gas mileage, replace before 150k miles

Do not buy any vehicles that exceed these limits when you start your P&D business. Always go for a new car.

P&D Vehicle Cost:

When shopping for new P&D vehicles, be aware that they can be expensive. However, you have no choice but to go for new ones because old vans can cost you a lot of money over time in maintenance and repairs. Below are some costs for P&D Vehicles (new):

  • P700-P1200 Gas Step Vans can cost from $50,000 to $65,000
  • P700-P1200 Diesel Step Vans can cost from $60,000 to $75,000
  • Standard Vans range from $38,000 – $42,000
  • Expensive Vans from $40,000 to $45,000

If you are investing a lot of money in a new car, it is very important to have FedEx parcel delivery insurance. In case of physical or mechanical damage to the Van(s), your money will be protected.