Equipment Cost Data Equipment Purchase Price 1. Line-haul tractors = R1,440,000 2. Line-haul trailers = R480,000 Depreciation 1. Tractors = 5-year straight line 2. Trailers = 8-year straight line Interest 1. Tractors = 6 percent annual percentage rate (APR) for 5 years 2. Trailers = 6 percent APR for 8 years Fuel 1. R12.00 per litre for diesel 2. Line-haul tractors =2.60 KM per litre (or R4.61 per KM) Labour 1. Line-haul drivers = R3.12 per KM 2. Pickup and delivery (PUD) drivers = R360 (fully loaded) per hour 3. Dock workers = R300 (fully loaded) per hour Miscellaneous costs 1. Insurance cost = R0.48 per KM 2. Maintenance cost= R0.97 per KM 3. Billing cost = R23.40 per freight bill 4. Tractors and trailers are available for use 24 hours per day, 365 days per year 5. Administrative overhead cost = 10 percent of total cost of move 6. Dock facility cost = R150 per hour 7. Line-haul vehicle averages 80 kph between origin and destination Route and Time of Move A shipment originates from UJ Soweto Campus (located 35 KM from the carriers dispatch facility) on 20 August. A line haul tractor and trailer are dispatched from the terminal at 0730 hrs and arrive at the shippers dock at 0830 hrs. the shipment is loaded from 0830 hrs to 1200hrs. driver and vehicle return to the carriers terminal at 1300 hrs to pick up paper work. Total time for pickup = 5.5 hours Total distance for pickup = 70 KM The vehicle and the driver depart from the terminal at 1300 hrs on the same day for Cape Town, Western Cape. The driver operates from 1300 hrs to 2300 hrs and travels 450 KM. the driver rests from 2300 hrs to 0700 hrs (on 21 August) in Bloemfotein and then operates another 8 hrs (0700 1500 hrs) and 375 KM. the driver rests again from 1500hrs to 2300 hrs in Beaufort West. The driver concludes the trip by travelling 450 KM from 2300 hrs to 0900 hrs (22 August) to the consignee in Cape Town. Total time for line-haul = 44 hours or 1.83 days Total distance for line-haul = 1,275 KM. The trailer is unloaded from 0900 1200 hrs with the driver and tractor remaining at the facility. The driver and the vehicle then go to the carriers Cape Town terminal, located 45 KM from the customers facility arriving at 1300 hrs to wait for further dispatch instructions. Total time for delivery = 4 hours Total distance for delivery = 45 KM. Questions 1. Based on the information in the case study calculate the (1) pickup cost, (2) line-haul cost, (3) deliver cost and (4) total costs for this move.