Question
You have a TL truck heading to Chicago, Illinois. from Gulfport, Mississippi. The distance is 920 miles and the shipper is paying $2346.00 for the
You have a TL truck heading to Chicago, Illinois. from Gulfport, Mississippi. The distance is 920 miles and the shipper is paying $2346.00 for the movement of bananas. It will take two hours to drop-and-hook the container of bananas at the food distribution center in Chicago. After the shipment is dropped in Chicago, your truck and empty container need to be back in Gulfport to pick up another load. There are no loads immediately available in the Chicago area. Therefore, the driver will have to return to Gulfport empty. However, a broker has called you with a load of Quaker Oats cereal at Cedar Rapids, Iowa, for export through the Gulfport terminal. The description of the load is good and it will work with the container that your driver picked up. It is estimated that it will take three hours to load the cereal at Cedar Rapids and then one hour to unload it at Gulfport. Calculating the distance (250 miles from Chicago to Cedar Rapids, and then 940 miles on to Gulfport) and the hours of service for the driver, you determine that the haul is possible. However, you need to determine if you should accept the load. Because there are many empty trucks from Chicago heading south, the rate for the cereal move is not very high. The broker has quoted a rate of $1.34 per mile for the move from Cedar Rapids to Gulfport. [1] Use the following information and state whether you should accept the load at Cedar Rapids or drive back to Gulfport direct. $0.74 Driver cost per mile (including taxes, insurance, health care, etc.) $0.18 Maintenance cost empty per mile $0.22 Maintenance cost loaded per mile $0.24 Insurance and license cost per mile $2.93 Diesel cost per gallon $35.00 Billing cost $44.00 Hourly driver delay cost 6mpg Vehicle mileage loaded 8mpg Vehicle mileage empty [2] Explain your decision and any problems that you might have with the choice. Attach your answers and calculations behind this sheet. Your answers and calculations must be neat and typed.
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