Fuel surcharge (yes, AGAIN!)

[wavking]

<Beating dead horse>
My initial thought is to go with a 40/60 option just until I get the hang of things but all the while calculating for both. But I get the feeling that 60/40 and taking the FSC may be better. I’m curious how fuel surcharge is calculated? What is the base rate above which FSC is charged? Is it different for differing carriers, regions, lanes? How is it paid? Is it separate from the freight rate and paid separately (sometimes)?

It seems to me:
If you’re a fleet owner or a 40% driver, you want to see a better rate
If you’re a driver paying fuel, you want a better fuel surcharge
If you’re an owner/operator, you don’t really care as long as the total rate+fsc is decent.
The bottom line is different for different people.
Am I close or way off?
</dead horse>

 

[nightcreacher]

each company figurs the fsc different.A lot of it depends on the contracts they have with their customers.In a D truck with good fuel mileage,60 40 would be good,but should your fuel mileage suck,60% wouldnt be enough

 

[x06col]

Yes again!!!!! I have been against fsc since it was dreamed up by a bean counter as a way to filter more from the flow. IF, the money don't work.......don't load it......unless ya already got a couple buks on the truck going the same direction!!!!!

fsc, BAH, HUMBUG!!!!!!!

 

[Vinnie T]

Yes again!!!!! I have been against fsc since it was dreamed up by a bean counter as a way to filter more from the flow. IF, the money don't work.......don't load it......unless ya already got a couple buks on the truck going the same direction!!!!!

fsc, BAH, HUMBUG!!!!!!!

+1

Look at the all on rate and do the math. If it works for you do the load. FSC is the biggest scam to O/O's ever. The only area it helps is for rates with the customer when the fuel price go up, but more times then none the FSC paid to the drivers is calculated differently to bennefit the carrier.

 

[fortwayne]

I agree with xCol...FSC carries a bla bla bla meaning. Get the total bucks to the truck and do the math. If it works fine if not fine....operate your business and don't get caught in the language that carries no value.

Posted with my Droid EO Forum App

 

[Turtle]

Shipper has a contract with carrier to haul freight at a specified rate. Fuel goes up, carrier cannot haul the freight at the contracted rate. Contract needs to be renegotiated to reflect increase in fuel costs. New contract in place, but the next week fuel changes dramatically again. Need to do another contract. After several weeks of this, a bean counter figured out a way to leave the current contracts in place and make the necessary adjustments to account for fluctuating fuel costs. The Fuel Surcharge was born.

Some carriers have contracted flat rates per mile for their contractors. Rather than having to redo O/O contracts every week as fuel prices fluctuate, the FSC is put in place to allow for altering the total rate paid to the contractors up or down based on fuel prices.

Those who are on a percentage rate aren't affected by a FSC at all, and are only concerned with the line haul rate. So one can Bah Humbug if the money don't work all day long, but the money will never ever work if you are on a flat rate per mile contract that cannot be adjusted for fluctuating fuel costs. If you are on a flat rate contract, FSC is language that caries a great deal of value.

 

[fortwayne]

Turtle, no disresect to you, or your post was intended. But weather your on a flat rate or a percentage really does not matter when adding things up.
Flate rate plus fsc equals your total.
Percentage plus fsc equals your total.
So if your total does not meet your need so be it.
As long as the total is there it doesn't matter how it got there.

Posted with my Droid EO Forum App

 

[RoadDawgg]

Why the hostility towards the FSC? I'll take that extra 20-90cpm on top of my rate any day. I'd never use FSC as my primary consideration for taking a load, but it's nice to have, period.

Since most customers don't pay the same rates on surcharges, it passes on more money to the truck more easily. If K.A. Carriers charges Mizerly Auto more money for the load, it doesn't necessarily go to the truck. Maybe it could, but it may not. So K.A. gets more, but truck doesn't necessarily. The FSC allows a more fluid, easier way to channel money to the truck who's hauling freight all over God's creation for K.A.

Pretty much what Turtle said, just saying it differently.

If you're really upset about surcharges, just send me the offending FSC via Comcheck, and I will make the sacrifice and put up with the dreadful thing so you don't have to....

Thanks!
Christopher

 

[fortwayne]

Heck I am not upset bout it. I just add it in to the linehaul and if the two total up to what I need great.
Don't care how it started or why, the point is the bottom line must equal my rate I need period.

Posted with my Droid EO Forum App