Fuel
- Thread starter Guvna
- Start date
rode2rouen
Expert Expediter
My guess is the freight companies are afraid that they will scare away the shppers if they keep raising the surcharge to keep pace with the fuel price increases.
Rex
Rex
Keep raising them? Not that we have been doing this for long... only about 3 months... but we havent seen them increase at all. When we first started, we were able to find fuel for $1.99/gal. In just 3 months, we cant find it for less than 2.25/gal (in the same region). Now... thats scaring me!! 
What is the history in review and subsquent revision of the surcharges?
In so far as scaring the shippers away... where are they going to go? They are still going to have to move the freight, and the need to expedite is created not so much by the price of fuel, but of the internal process of industry and production........
My guess is that they arent being increased because the drivers arent demanding it. Every driver that I have spoken with talks about how the price of fuel is hurting them. When I ask who else they are talking to...and what they are saying... they just kind of look at me and shrug.
Maybe Im being impatient.... but if something doesnt happen soon to help offset these prices, I dont know if it is going to be worth it to continue........ There has to be others out there thinking the same.......................
What is the history in review and subsquent revision of the surcharges?In so far as scaring the shippers away... where are they going to go? They are still going to have to move the freight, and the need to expedite is created not so much by the price of fuel, but of the internal process of industry and production........
My guess is that they arent being increased because the drivers arent demanding it. Every driver that I have spoken with talks about how the price of fuel is hurting them. When I ask who else they are talking to...and what they are saying... they just kind of look at me and shrug.
Maybe Im being impatient.... but if something doesnt happen soon to help offset these prices, I dont know if it is going to be worth it to continue........ There has to be others out there thinking the same.......................
Loose_Cannon47
Expert Expediter
My SO dispatches for one of the major OTR carriers. One of their contracts pays a 22% (of the linehaul) FSC. At $1/mi, at 6 MPG, that's paying for half of the fuel. Who say's there's no free lunch.
Loose
Loose
Ok... and at what point will you be turning down more runs than you are accepting? At the rate fuel costs are increasing, it will happen sooner than later.
I suggest a better approach than sitting and waiting for that to happen is to get active now. Talk to people, tell them that you are unhappy that your profits are erroding faster now than ever before. Why take a passive approach... it is your life... it is your bread that is dwindling. Costs are being absored by us instead of being passed down to the end user, or absorbed at the top by the producers because we are being passive and letting that happen.
I like what I do and would love to be able to see a future in it....
I suggest a better approach than sitting and waiting for that to happen is to get active now. Talk to people, tell them that you are unhappy that your profits are erroding faster now than ever before. Why take a passive approach... it is your life... it is your bread that is dwindling. Costs are being absored by us instead of being passed down to the end user, or absorbed at the top by the producers because we are being passive and letting that happen.
I like what I do and would love to be able to see a future in it....
Thats one example of... how many? Are they paying a fixed percentage? If so, thats a good contract. Im not so sure thats the case in many others. I know that for hauls we have done for Ford, GM, Mitsubishi, and other top line manufacturers, the fsc was .05/mile when we started, and is .05/mile now. No change when there has been at least a 15% - 20% increase in fuel costs over the last 3 months......
15% - 20% in three months... thats a bundle in and of itself... not to mention over the next year....
If we allow ourselves to be complacent now, if we give the perception that we are happy while profits are erroding faster than ever, when do you think carrier management will become active on behalf of o/o's and drivers...? While they negotiate the contracts.... they arent paying a dime for fuel.....
Its up to us... we cant be happy with one example out of hundreds...or even thousands.... Its a bad suitation, dont allow yourself to be fooled.
15% - 20% in three months... thats a bundle in and of itself... not to mention over the next year....
If we allow ourselves to be complacent now, if we give the perception that we are happy while profits are erroding faster than ever, when do you think carrier management will become active on behalf of o/o's and drivers...? While they negotiate the contracts.... they arent paying a dime for fuel.....
Its up to us... we cant be happy with one example out of hundreds...or even thousands.... Its a bad suitation, dont allow yourself to be fooled.
Ref: Fuel S/C.
Everybody should be very pissed off right about now!
I'm sick & tired of being taxed to death every body from Futa tax
mesc tax state & federal gee did I forget some one paying my accountant to handle our books, and oh yes the repair bill's!
All of these freight Company's do not give a ---- except their own back pocket, other wise they would help the drivers & owner operators.
They are generious to give us $1.21 a mile while they get around $5.00 a mile or more etc.
WE need a revolution in this country to take back what the hard working man has lost through the years to all of the rich low lifes that run this country into the ground!
Smile it's only going to get worse, now they want to import all of the farm produce from other country's so our American farmers can finally quit struggling so they can get part of our lost American Heritage. Buy American made products or sign up for Japanise welfare!
Everybody should be very pissed off right about now!
I'm sick & tired of being taxed to death every body from Futa tax
mesc tax state & federal gee did I forget some one paying my accountant to handle our books, and oh yes the repair bill's!
All of these freight Company's do not give a ---- except their own back pocket, other wise they would help the drivers & owner operators.
They are generious to give us $1.21 a mile while they get around $5.00 a mile or more etc.
WE need a revolution in this country to take back what the hard working man has lost through the years to all of the rich low lifes that run this country into the ground!
Smile it's only going to get worse, now they want to import all of the farm produce from other country's so our American farmers can finally quit struggling so they can get part of our lost American Heritage. Buy American made products or sign up for Japanise welfare!
I agree that its going to get worse.... the people who make it work.. US, have been and are still to passive. I predict that not only will it get worse... but its going to get ugly. I just dont understand why o/o's or anyone else who pays their own fuel have not been more vocal to carrier mgmt. about the fsc's...????? Just in the last 2 days, I have refused 3 loads... 2 paying .05 and one paying .06. I am certain, and have no doubt that someone right behind me accepted them. The best thing we can do right now is to reject the absurd. Loads paying .05/mile fsc are just that.....absurd!!!!
Many of the low paying fuel surcharges are tied to contracts that were written when fuel was $1.50.
Situations are changing in that one can't just haul any load and hope to recover the loss on a later load.
Options are clearly more limited until there is some movement in the actual freight rate.
Davekc
owner
21 years
Situations are changing in that one can't just haul any load and hope to recover the loss on a later load.
Options are clearly more limited until there is some movement in the actual freight rate.
Davekc
owner
21 years
I certainly don't know since I haven't seen any current ones.
Some do have a provision but they are capped at a certain amount or percentage.
Some have no FSC provision. Little by little, that is becoming a rarity.
I am basing that on when I did my own contracts many years ago, and not the current expediting climate.
Davekc
Some do have a provision but they are capped at a certain amount or percentage.
Some have no FSC provision. Little by little, that is becoming a rarity.
I am basing that on when I did my own contracts many years ago, and not the current expediting climate.
Davekc
Well... the problem is now....
And Id still like to see some of the current contracts that carrier mgmt so closly guards....
Better yet... Id like to see some of the customer billings.....
Im willing to bet you a dollar to a donut that where some loads are hauled for .05 fsc ... that they are billed at something more significant....
conjecture on my part.. I know... but I think a good bet!
And Id still like to see some of the current contracts that carrier mgmt so closly guards....
Better yet... Id like to see some of the customer billings.....
Im willing to bet you a dollar to a donut that where some loads are hauled for .05 fsc ... that they are billed at something more significant....
conjecture on my part.. I know... but I think a good bet!
I agree with what was said in all those posts, but frankly, I don't know how action could be taken without some of us beeing hurt financially.
I have realized that it only backfires on me when I turn down a load that sounds not profitable enough, or I know for sure I will not have a backload out of that particular place. In another post I already posted that my company does not pay a fuel surcharge, rather claims that they don't charge the customers, and therfore some sort of charge is includet in my pay rate anyways. Thats just a lame excuse, but so be it. I realized, that with turning down loads, I don't make money, and also I am taking the risk of beeing out of my job in no time, because managment is pissed. So, I am asking, what options are there???
If I was a union member and paid by the hour, I would have been taken action three month ago.
I have realized that it only backfires on me when I turn down a load that sounds not profitable enough, or I know for sure I will not have a backload out of that particular place. In another post I already posted that my company does not pay a fuel surcharge, rather claims that they don't charge the customers, and therfore some sort of charge is includet in my pay rate anyways. Thats just a lame excuse, but so be it. I realized, that with turning down loads, I don't make money, and also I am taking the risk of beeing out of my job in no time, because managment is pissed. So, I am asking, what options are there???
If I was a union member and paid by the hour, I would have been taken action three month ago.
were getting are a raise on surcharge on monday it's going up
1 percent more
on 12th of aug they ask me if i would go louisville, ky for .90 cents a mile plus fuel surcharge, would do it for 1.60 a mile and fuel surcharge said customer won't pay that for 500lbs said call someone else
1 percent more
on 12th of aug they ask me if i would go louisville, ky for .90 cents a mile plus fuel surcharge, would do it for 1.60 a mile and fuel surcharge said customer won't pay that for 500lbs said call someone else
Gary and Linda
Expert Expediter
Hey Leo
What do you consider to be a good FSC
What do you consider to be a good FSC