Dedicated Parcel Route

[marmon01]

I'm an experienced tractor trailer driver nearing retirement and thinking about doing something similar to operating a "B" unit, except the van would be dedicated to one customer on a fixed route.

The route would involve transporting legal papers, data on computer disks, etc between bank branches and a central location, five nights a week (no cash is involved). The route covers 320 miles and presently takes from 7 to 7 1/2 hours to complete.

I would operate under an annual contract that would translate to about 62 cents per mile (cpm) gross. I've projected some cost figures assuming purchase of a new 3/4 ton van and my operating cost appears to be around 28 cpm. I live about 6 miles from where the route would start/end, thus there are virtually no "dead head" miles.

Primairily, I'm wondering if the 28 and 62 cpm figures look reasonable for a van? Thanks.

 

[geo]

i think that is a little low, i would assk for more like .90 a mile
and maybe compomrise for a little less like .72 or .80 per mile
or little more have to talk and compomrise on a fair amount
because it cut thoart out there

 

[Lawrence]

Hi Marmon,

Let me guess...you like Marmon trucks ;-)

I think .62 CPM is on the low side, but if you are home every night and it's ALL miles - it may a good deal.

Most vans average anywhere from .50 to .70 CPM for all miles.

Best of luck!

Lawrence
Expediters Online.Com

 

[marmon01]

Thanks for the responses. The 62 cpm is what the bank claims as the cost of doing the route themselves. They really want to get someone to contract it if the cost is not siginiciantly higher. I'm tempted to propose something just under 70 cpm and accept 65 or better. This route is desirable in that only a few hundred pounds (total) of bags are involved.

 

[Lawrence]

Marmon,

It sounds like a good opportunity! Please keep us informed as to how it works out!

Lawrence
Expediters Online.Com

 

[teacel]

I didn't see your post untill now, and was wondering if you got the run?

I do the same type of run (differant freight) only longer miles and longer nights. If you are only going to haul 3 or 4 hundred lbs. then why get a 3/4 ton van when you can do the same with a 1/2 ton and save on plates, insurance, and all the other goodies. It is going to cost you about $0.08 a mile for your expenses, and that is: fuel - tolls ($25 a day) - van note ($500 a month)- insurance ($2000 a yr). You will have to look at highway miles versus city miles. If I do a run and I go 70mph for 10hrs. I will do it for less than if I do 35mph. for 10hrs.

It sounds like your average will be 45mph, so it must be city - stop and go. You should try to get no less than $0.60 a mile or look for something else to haul along with the banks load.

How hungry are you! You have to make this work for you. You may be able to do the run for $0.50 a mlie and be able to live on that kind of money. I may have to do it for $0.80 a mile and still need more.

 

[marmon01]

An update--the older gentleman that now does this run decided to wait on retiring; thus, the bank will keep doing it in house.

I appreciate the excellent input I got on this. One additional interesting note, the bank had trouble putting a replacemnt value on the legal papers, computer discs, etc that I would be carrying; thus, I couldn't get an exact insurance quote.

I was wondering, is there any standard cargo insurance amount that is typically carried on a B unit? Thanks.