team pay- poor mileage compensation

**csny42** · 08-31-2010, 01:00 PM

Hello all-my team is running a 2005 Western Star 4900 straight truck with Detroit Diesel 60 series/tandom axles getting about 7 mpg on hwy. I don't really think this is 2 unusual since truck is reefer with APU, 120 gal tanks, liftgate. However, I'm trying to look for poss answer for this mileage-has airtabs/new air filters/normal tire pressure/seems to run great. However, my team(10 years expedite experience in their own truck) is asking for more pay to offset poor mileage. They get 65%, tolls they pay, 65% fuel surgage(rest in escrow to pay fuel tax). They pay fuel but are not charged for qualcom/PRepass, etc,. I'm trying to decide if this si a reasonable request and if others have had this request from teams. If so, strategies for paying. They are seasoned professionals and I don't want to lose them. Their truck(single axle) with Cat(also reffer/APU/liftgate) got 9-10 mpg. Thanks for any assistance/thoughts.

**davekc** · 08-31-2010, 01:04 PM

I probably wouldn't be keeping 35 percent of the FSC.
Pay them 60 percent of the revenue and 100 percent of the FSC and you should be good to go.

**bikerpaul** · 08-31-2010, 01:18 PM

If they are paying for the fuel, they should get 100% of the fsc. Look at it as if the roles were reversed.

**Shadowpanda** · 08-31-2010, 03:32 PM

some ideas; 100% fsc goes to whoever pays the fuel. this is standard practice.
for better mileage, team slows down. best way to increase mileage. low rolling resistance tires, hi flow exhaust, turbo3000 are mechanical means to look at which will help.

**PlusServices** · 08-31-2010, 07:04 PM

I agree with all the other posters here, If the team pays 100% of the fuel they get 100% of the FSC. The fuel taxes are minimal and keeping 35% of the FSC for that purpose is overkill. As for your trucks mileage there must ba a problem. I have tandem axle trucks that get 9.5 on average. Refer and APU included. I would figure why the bad MPG. There are occassions when our MPG is low but that has to do with wind resistance and weight of the load. Have you figured out the trucks optimum speed to maximize MPG? Most of our trucks get the best fuel economy at 66 MPH, Although 55 to 60 will increase fuel economy. Over 66 MPH the MPG goes bad real quick. Just keep working with your team to find all the answers. In the mean time give them the whold FSC and bill them the Fuel and mileage taxes as they come due. Good teams are hard to come by and its going to get worse after CSA2010 kicks in.

**nightcreacher** · 09-01-2010, 01:26 AM

Ok,first off,what I assume,this team is making you money.Probably,if your truck is only getting 7 mpg,it may be from how they are driving.I get that and sometimes much better in my tractor trailer.When was the last time you had it tuned up at your friendly Detroit Engine dealer.There are many reasons why you might get poor mileage.
Now if your not having trouble giving them the 65%,I would give them the 100% of the fsc,but let them know that they are responsible for the fuel taxes.
You might be better off this way,rather than the alternative,getting a team that just doesn't make you any money.
By paying the team you have a little more,keeps your accountant happy,you will be paying less to the IRS.
Good luck

**Yesteryear** · 09-01-2010, 01:31 AM

Originally Posted by csny42

Hello all-my team is running a 2005 Western Star 4900 straight truck with Detroit Diesel 60 series/tandom axles getting about 7 mpg on hwy. I don't really think this is 2 unusual since truck is reefer with APU, 120 gal tanks, liftgate. However, I'm trying to look for poss answer for this mileage-has airtabs/new air filters/normal tire pressure/seems to run great. However, my team(10 years expedite experience in their own truck) is asking for more pay to offset poor mileage. They get 65%, tolls they pay, 65% fuel surgage(rest in escrow to pay fuel tax). They pay fuel but are not charged for qualcom/PRepass, etc,. I'm trying to decide if this si a reasonable request and if others have had this request from teams. If so, strategies for paying. They are seasoned professionals and I don't want to lose them. Their truck(single axle) with Cat(also reffer/APU/liftgate) got 9-10 mpg. Thanks for any assistance/thoughts.

10 year seasoned professionals? hmmm I am very surprised a team that is experienced would accept a contract such as yours. Afraid I would still be laughing. lol

**nightcreacher** · 09-01-2010, 04:36 AM

Originally Posted by Yesteryear

10 year seasoned professionals? hmmm I am very surprised a team that is experienced would accept a contract such as yours. Afraid I would still be laughing. lol

You know most teams split 60 40 and get full surcharge,what this guy is paying is 65%.he's giving 65% of the fsc,holding back 35% to cover the fuel taxes.His contract isn't really that bad.I would just rather see him pay the 100% fsc and then take the fuel taxes out of their settlement.It's only right if you get the fsc,your buying the fuel,then you should pay the fuel tax.If they buy in every state like you should, they wouldn't have a deduction for the tax

**ATeam** · 09-01-2010, 11:42 AM

Diane and I once changed fleet owners and found ourselves in a truck that was nearly new but got only 6 mpg. We found a new fleet owner and were out of that truck in short order.

I don't care how sweet the details of a contract may be. If a driver is paying for fuel and getting poor mpg, the driver is at a significant disadvantage. So is the truck owner if he or she wishes to attract and retain intelligent drivers.

One way to retain your desired team would be to put them on a contract where you pay for all the fuel and keep the entire fuel surcharge for yourself. That relieves them of fuel concerns and may thereby resolve your retention concern. If that is financially unacceptable to you, welcome to seeing the fuel pump from their point of view.

In calculating its fuel surcharge for straight trucks, our carrier uses a 9 mpg assumption. A truck that gets less than that is operating at a disadvantage no matter who is paying for the fuel.

Fuel is one of the largest expenses expediters have. The more you can do to improve fuel economy (and there is a lot that can be done), the better off you will be, whether you are a fleet owner or driver.

If you have ruled out the team's driving habits (lead foot, idling, etc.) as the cause of your 7 mpg figure, consider ruling out the truck. Get rid of that square nose, external air filter, external stacks dinosaur and get a truck with which you and your teams can prosper.

**davekc** · 09-01-2010, 11:58 AM

Could be just to lazy to put enough air in the tires. You would be surprised sometimes. Maybe a look at the history of the vehicle. Did it always get that type of mileage? I agree with the others. Many ways to get the fuel economy under control.

**nightcreacher** · 09-01-2010, 12:10 PM

ovm,i just had egr work done.new turbo,vpod,actuator,egr valve.went from 5.5 to last night got 8.5,sure i was only driving 57 mph,thats my normal speed.that owner needs to run the ecm and see if its the driving habits or the truck.In any event,65% can be a big payday.
Phil,65% and fsc,there is no way i would let the owner pay for fuel.
Ive worked it out for years,bottom line,drivers make more buying the fuel,and in most cases they are more responsible.Sure if they dont take care of business,run useless empty miles,run to fast,and take poor paying loads,this can hurt them,but on the same token,an owner that buys the fuel and lets that happen,won't have those drivers for long either

**OntarioVanMan** · 09-01-2010, 12:13 PM

Originally Posted by nightcreacher

ovm,i just had egr work done.new turbo,vpod,actuator,egr valve.went from 5.5 to last night got 8.5,sure i was only driving 57 mph,thats my normal speed.that owner needs to run the ecm and see if its the driving habits or the truck.In any event,65% can be a big payday.
Phil,65% and fsc,there is no way i would let the owner pay for fuel.
Ive worked it out for years,bottom line,drivers make more buying the fuel,and in most cases they are more responsible.Sure if they dont take care of business,run useless empty miles,run to fast,and take poor paying loads,this can hurt them,but on the same token,an owner that buys the fuel and lets that happen,won't have those drivers for long either

Steve we are on the same line of thinking....imagine that

**nightcreacher** · 09-01-2010, 10:49 PM

1988 when i put on my 1st team,they would come home evey weekend,no matter how far it was to dead head home.What I did was figure out what it cost per week for fuel,put a percentage on it,so what they got was 50%.Back then fuel prices were much lower.The best part,Roberts gave 50% advances so Unless they did some work on the truck,they were incharge of their own paycheck.Believe me,there were no more 1000 mile dead head hjome

**csny42** · 09-02-2010, 01:04 PM

-for now-I want to give a HEARTY THANKS to all who have responded. You all make some good points and have given me a direction to go in. I will absolutely get the truck into the dealership to have the computer checked as well as try some of your other suggestions. You guys really came through with advice and as a newbie-I appreciate it very much. Be safe on the road.

**layoutshooter** · 09-02-2010, 01:07 PM

Originally Posted by csny42

-for now-I want to give a HEARTY THANKS to all who have responded. You all make some good points and have given me a direction to go in. I will absolutely get the truck into the dealership to have the computer checked as well as try some of your other suggestions. You guys really came through with advice and as a newbie-I appreciate it very much. Be safe on the road.

Don't be a stranger!!