Fuel sur charge for expediters

00Grog

Rookie Expediter
Do the expediters that pay for their own fuel get the fsc for every load they haul?
About 6 months ago I hooked up with an expediting company. During the "orientation" (this was a 1/2 phone call) I was told not all loads pay a fsc and this was normal. Well after hauling for them for 5 months, I thought it was amazing that not one load payed a fsc. Looking back now there was all kind of flags that should have made me walk away from this company,but at the time I needed to be working someplace.
What % of the loads do you get the fsc and are you using gas or diesel?
Just doing a little research before going with another company.
 

purgoose10

Veteran Expediter
Do the expediters that pay for their own fuel get the fsc for every load they haul?
About 6 months ago I hooked up with an expediting company. During the "orientation" (this was a 1/2 phone call) I was told not all loads pay a fsc and this was normal. Well after hauling for them for 5 months, I thought it was amazing that not one load payed a fsc. Looking back now there was all kind of flags that should have made me walk away from this company,but at the time I needed to be working someplace.
What % of the loads do you get the fsc and are you using gas or diesel?
Just doing a little research before going with another company.

Are you driving your own truck or are you a contract driver? I really can't imagine this not being discussed from the start. FSC is a controversial subject but if your driving for someone in their vehicle than it should be in your drivers agreement with the owner. Some large customers refuse to pay FSC, others pay what they want to pay and a few actually pay according to the list put out every couple of weeks. Please don't take this wrong but you need to stop and regroup if you can't answer this question after 5 months. Good luck.
 

Murraycroexp

Veteran Expediter
I could only NOT see FSC if you are running all "load board freight" where they are flat rate bidding on every load. But the bid rate, at least occasionally, should include a little more to cover higher fuel cost loads.
 

00Grog

Rookie Expediter
I did stop, that's why I'm looking into it now before I find another company to haul for. I was driving my own truck,paying for gas myself. With that being said,this is not the reason I left that company.I had other issues with them ,but money was not one.
 

00Grog

Rookie Expediter
Murraycroexp, I guess that's what I should be looking into,which companies run only load board freight. Also do most companies have some kind of floating rate. The outfit I ran for paid the same per mile for every load, where ever it was going or how ever many miles.
 

BobWolf

Veteran Expediter
Owner/Operator
Wordy but Im trying to put it into plain english for the newbies.

Some brokers, fleet owners, or carriers charge a fuel surcharge and some dont. Im one who dosent I simply charge what it costs to move freight. A fuel surcharge is charged by the brokers, fleet owners, or carriers. This is typicaly as a percentage this varries as there is no set rate as everyones costs varry. The ENTIRE FSC passes through to whoever pays for the fuel. In theory this is not actual income as it should not be a proffit maker. In real world it makes a diference betwene making a paycheck and eating or going broke and starving that week, so yes the government still gets a peice of it at tax time because you still have to claim it on your taxes.

To keep things simple lets say the FSC is 5%.
If a load Broker or fleet owner charges 2.00 per mile then he adds $.10 per mile to the bill to offset fuel costs and hires A Motor Carrier for 60/40 split who pays for his or her fuel.
If that broker pays 1.20 per mile pluss FSC then you should get 1.20 for the run and as a seperate line item show $.10 for FSC.
Notice how the $.10 passes through to the carrier who pays for the fuel.
I have a load broker that will charge and pay a set ammount of $100.00 for the per 500 miles. On a 400 mile run thats about half of my fuel cost in addition to the run that pays $720.00 so in that case my rate agreement looks like this..

Line haul/delivery $720.00
FSC $100.00
Total $820.00

Or some pay it in a lump sum based on that weeks COMPLETED RUNS.
But this is based on Gross sales what they charge not what the broker pays you so you get paid a percentage you need to know what your broker is charging. And not to beat a dead horse seperate line item.
Totaly legit again it should be shown as a seperate line item.
You do have the right to see what they are charging if you are being paid on the percentage.

A couple dirty tricks I have seen some brokers do is pay the FSC based on your pay so instead of getting a FSC of .10 per mile they pay .05 per mile or simply pocket the money.

Hope this helps a little
Bob Wolf.
 

Murraycroexp

Veteran Expediter
Good job Bob!
I always though a good mix of customer freight and broker freight was ideal. Ideally, the broker freight helped get your trucks back to the areas where the customer freight is.
 

mjmsprt40

Veteran Expediter
Owner/Operator
FWIW, the outfit I run with pays FSC for every loaded mile. Presently, it's .16 per mile, it varies with the price of gasoline.

Someday they may have to raise the base per-mile, since it's obvious we're never going back to under 2.50 a gallon gas again, but until they do get that idea we have FSC.
 

Moot

Veteran Expediter
Owner/Operator
I had other issues with them ,but money was not one.
If money wasn't the issue, then don't worry about f.s.c. If you are satisfied with what the load pays, then it doesn't matter how the total pay for the load is packaged.
 

OntarioVanMan

Retired Expediter
Owner/Operator
If money wasn't the issue, then don't worry about f.s.c. If you are satisfied with what the load pays, then it doesn't matter how the total pay for the load is packaged.

I agree with Moot...I crossed dock with a guy in St Paul....carrier was from there...he was paid $1.00 a mile....no FSC.....or rather the FSC wasn't a separate issue...as long as the TOTAL money is there. It could be .90 FSC and .10 a mile total $1.00 doesn't matter.
 

guido4475

Not a Member
Do the expediters that pay for their own fuel get the fsc for every load they haul?
About 6 months ago I hooked up with an expediting company. During the "orientation" (this was a 1/2 phone call) I was told not all loads pay a fsc and this was normal. Well after hauling for them for 5 months, I thought it was amazing that not one load payed a fsc. Looking back now there was all kind of flags that should have made me walk away from this company,but at the time I needed to be working someplace.
What % of the loads do you get the fsc and are you using gas or diesel?
Just doing a little research before going with another company.

Being as how orientation was only a half hour on the phone would of been grounds for dismissal in itself...
 
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