Looking for Advice on this Job Offer

[Phoenix4774]

I was offered a job with this company:

MedicalDeliveryServices

and wanted some advice.

They pay $.46/mi. and I'll be running 300 miles a night, 5 days a week, so $690 (with only about a $50 surcharge for gas per week). The route only takes about 6 or 7 hours. I'll be hauling Hazmat radioactive pharmaceuticals. This sounds ok to me.

I don't need much cargo space, I can do it in my S-10. I could also do it in many hatchbacks, crossovers, minivans, etc. The only rule is sometimes I'll need 5' in cargo length separating me from the cargo due to protection from radiation.

I was actually wanting some advice on optimal vehicle selection for this work. (300 mi. x 5 days x 52 weeks = 78k miles per year I'll put on it, mostly highway miles). The work begins out of Dayton, so I will have to deal with snow, which is why I'd kind of like to get at least a FWD to replace my RWD S-10.

So far, the VW Sportwagon TDI getting 30/42 mpg looks good. I could also get a Subaru outback. I'd like optimal mpg, great reliability and cheap repairs, and the ability to drive through all the winter snow. I'd like to buy a used cheapy, which isn't that possible with the VW Sportwagon. So any suggestions? Thanks.

 

[ATeam]

Have you talked to others who contract with this company? At that pay, I have to wonder if anyone can be found who has been with the company for a meaningful period of time and whose bank balance is bigger now than it was when he or she started.

 

[greg334]

I would go with the Sub, but the real issue is the safety one.

I worked in the medical transportation field, I had to be trained (as a safety coordinator) in handling the material you will be handling and the company I worked for actually handled it for specific customers.

The issue of using an open vehicle is not the transport of it but when there is an accident. We used pickups with secured boxes where the material would be safe in case of an accident. The risk of environmental contamination and driver injury in an open vehicle, like a hatch back is greater if you get rear ended than in a pickup.

You are traveling at night in all kinds of weather conditions so being cautious and ensuring the publics safety and yours is really important.

The thing to remember is that you as a driver, can be held liable if you cause the accident employee or contractor.

I know this is up here in Detroit now, maybe I should dump the truck and go for this?

 

[Phoenix4774]

I'm not really sure how good the job is, I think it depends on getting as cheap and high a mpg vehicle as possible that still has ample cargo space. I figured I'd give it a try since I'm unemployed. Tax wise I'll have net losses since the standard mile rate is $.50 and I get $.46, so no taxes anyway.

What I need to do is calculate a cost per mile breakdown like what is here:

Figuring Cost Per Mile - Owner-Operator Independent Drivers Association

 

[Phoenix4774]

Here's a little math, it's doesn't look real good to me.

Pay Breakdown Per Week
$.46/mi. x 1500 mi. + $75 ($5 each stop [3stops/day]) = $765 + 5% (fsc [varies each month]) = $803.25 – $22.75 (Occ/Acc insurance) = $780.50.

Thus: $780.50 x 52 = $40,586 gross per year.

$40,586
-$10,636 gas (@ 22mpg)
-$800 insurance
-$400 tires
-$650 oil changes
$28100

[Fuel cost @ 22mpg (19/25 S-10): 78,000 mi./yr. (1500 mi./wk x 52) / 22 mpg. = 3545gal. x $3/gal. = $10,636.]

This assumes no car payment, breakdowns, or repairs though, which is unreasonable. One could offset this a bit with a higher mpg vehicle.

 

[nightcreacher]

run away as fast as you can,but the .46 would be ok if your driving their equipment and they pay expenses

 

[greg334]

why say run away?

I think it isn't all that of a bad deal, it is hauling less than 30 pounds of stuff in a car/minivan or pickup.

There are two parts I am wondering about.
Is it only the three stops or is there more?

AND how do you figure that you are operating at a loss at .46 a mile?

 

[truckblue]

Do you have commercial license and Haz Mat endorsement, which they "recommend". I would use the word require!!
The 800.00 ins. cost...is that commercial insurance, and for radioactive material, I would be sure your insurer knows what you are carrying. If you do not have your vehicle placarded, and you spill this stuff, there could be real problems. I,too would say run away. I make 45cents/mile, with no expenses, and no hazmat. If you live in or near a major city..ie; Atlanta, Detroit, etc...you would be better off as a courier with a reputable courier company. Check them out.

 

[Phoenix4774]

For tax purposes, because I saw you can write off $.50/mi., so since they're paying $.46 it would be a NOL on paper—meaning I wouldn't have to pay much taxes most likely.

They give you $5 per stop which I calculated in. I'm not sure of my route yet, they have me going near Detroit tonight, which is 424 mi. round trip from Dayton. Eventually I'll have a route between 300-500 miles. This one's a relay with one stop, nearly all highway.

 

[Phoenix4774]

I have a CLass B w/ Hazmat and they require the vehicle to be placarded. I have the 100/300/100 insurance they required, but yeah I do need to contact my insurance to make sure it's kosher, or shop around.

So you make .45/mi. in a tractor as a company driver? Yeah that's much better than this, can't argue that.

 

[greg334]

So your insurance is a commercial policy?

I just saw the costs, that's not really bad if it is a commercial policy.

 

[Turtle]

If you really calculate all the costs, like repair and maintenance other than oil and tires, and add things like brakes and engine coolant and transmission changes, replacement parts, truck washes and windshield wipers and fluid, lots of little things that add up, your Cost Per Mile could easily reach 30 cents or more per mile, leaving you with 16 cents at most for your salary. 16 cents at 78,000 miles a year is $12,480 a year, or $240 a week.

 

[LDB]

It needs to pay mileage a little better and pay fsc a lot better. When you say 300 miles per night, what time does that start? The VW is too expensive and diesel is higher than gasoline. The Subaru has the advantage of AWD but mediocre fuel economy. A Mitsubishi Lancer Sportback gets significantly better mpg but is only a FWD vehicle. There would certainly be other 'suspects' to consider, perhaps even a fairly high mpg sedan pulling an airweight trailer that would give the cargo space of a hatchback and also separate you from the cargo.

 

[Phoenix4774]

Yeah I think I'm gonna pass, I can't work out the numbers so where it will be very profitable: it could easily turn out to be as Turtle suggests.

There is also an issue as to liability for the cargo, as it may be up to 500k worth of medicine a load. They say I am liable for miss-delivery, but would not have to pay for the cargo (the medicine corrupts quickly and becomes unusable) in case of a miss- or untimely delivery.

The lead driver I spoke to said he's never heard of them billing a driver for the cost of the medicine, but I wouldn't want to be the first.

 

[truckblue]

straight truck...expediter...but sounds like you have your ducks in a row. I couldn't tell from your post . Good luck, I hope it works out for you.

 

[ATeam]

There is also an issue as to liability for the cargo, as it may be up to 500k worth of medicine a load. They say I am liable for miss-delivery, but would not have to pay for the cargo (the medicine corrupts quickly and becomes unusable) in case of a miss- or untimely delivery.

So, you're talking about a company that puts $500,000 worth of radioactive medicine that corrupts quickly on an SUV, crossover, pickup truck, van or whatever; attaches a certain amount of liability to the driver of that vehicle; and pays a self-employed contractor $0.46 a mile plus a whopping $5 per stop to deliver the stuff safely and on time.

How many things are wrong with that picture?

 

[Phoenix4774]

Too many for me, it just doesn't seem real tight. It needs to be company ran, it smacks of them trying to get out of stuff, short change the driver, etc.

The gray area of liability is my major issue, just think if they tried to put $500k on you lol. I asked the driver about it, he said MDS says that but he never knew anyone who got charged for miss-delivered cargo. The fact that the driver acknowledged "they say that" means I heard them right (I plan to look for it in my contract to see if I can pinpoint it). When I called earlier the rep. said no they wouldn't charge me for the cargo if miss-delivered, just not pay me for balking it up.

The picture of me sloshing around with a load of radioactive material in my S-10 this winter isn't very consoling either, probably not the best time to start. There is also the bad omen of a person running into my left front side last Wednesday.

 

[ConfusedMuse]

A company that literally sold their soul to the lowest bidder, and put humanity and the people who need their drug even lower. The FDA is aware of this company and their shipping practices? All we can say is we continue to be shocked in this business.

 

[Phoenix4774]

I checked and it says I would be completely liable. This is a bigger deal since the driver said the loads may be worth as much as 500k - 1 million dollars, and the medicine corrupts so it can't be untimely delivered for too long. There's no way I could accept this, even if the job payed great which it doesn't. Is this transfer of liability standard in expediting contracts?

SEVENTEENTH: The Independent Contractor shall be responsible for all loss, injury or damage that occurs in
connection with the performance of services hereunder by the Independent Contractor or his/its employees and independent contractors. The Independent Contractor agrees to indemnify, defend, and hold harmless SCI and/or its customers for any and all liability, damage, cost and expense incurred by SCI and/or its customer as a result of the Independent Contractor's performance of services under this Agreement (or that of his/its employees and independent contractors), or as a result of any
breach of any term of this Agreement by Independent Contractor or his/its employees and independent contractors. The Independent Contractor shall be further liable for failure to complete a delivery and for any claims for coverage, shortage or damage. The Independent Contractor specifically grants SCI and/or its customers the right to subrogate against itlhim for any claims that SCI andlor its customers elect or are obligated to payor settle. The Independent Contractor further agrees to
indemnify, defend, and hold harmless SCI and its customers for and against all damage to, destruction of, or loss of use of the equipment described herein under this Agreement.

 

[greg334]

Well that's good that you found all of that out. I do see the numbers working, but barely. I didn't want to be part of the crowd to say 'run' because there was something else you didn't mention and I can't say about this company or the work so I assume it won't matter.

By the way, this is not the only company that does this work, you know that?