fuel surcharge
- Thread starter morningwood
- Start date
tenntrucker
Expert Expediter
As Forrest said, "I'm not a smart man", so keep it simple for me....
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We're back to the "well, duh" moment. So what you are saying is, you're happy with $1.85, and as long as you get $1.85, then it doesn't matter if you are actually due $1.96 because you're happy with $1.85, and whatever the carrier makes above $1.85 you couldn't care less about. Got it.
If you remember I said average of...
I am very happy when I get those short loads that pay the truck much more. But as long as I am getting more than company B, C, and D were offering I don't care if I am getting beat out of a few cent's per mile because of some calculation. I am still making more in the end. Especially if leasing to company A pays more for the same load that I was getting at company B...
Yes, I remember. I also remember how concerned you are with things on a load-by-load basis.
Right. I got it.
In theory, that's true. In practice, we sometimes accept loads that don't quite meet the rate we need, because it's for a very good customer, we're the only truck that can, it's a rescue - there are many reasons to do it, but they all boil down to the fact that we trust the carrier to not abuse the relationship by lying to us.
Same goes for the FS: if the carrier is dishonest about it, they shouldn't be trusted about anything else, either.
It's not entirely about the money, because the relationship is what keeps us with a carrier, or prompts us to look elsewhere. For me, trust in their honesty is as important as mine is to them: violating it is a definite dealbreaker.
Gary, does your carrier have customers of their own? I think you may be only seeing this from the perspective of an owner leased to a small carrier working bid boards where the bidders bid a total price for the load. Nice and simple. But many carriers have their own customers and published tariffs with a fuel surcharge program. The published rate is kinda like a manufacturers suggested retail price. Most customers don't pay that rate. Better customers negotiate a contract with a specified rate that may or may not include a fuel surcharge.
As I mentioned earlier in this thread, originally fuel surcharge programs were just that, a surcharge in addition to a carriers tariffs to cover the volatile fluctuations in the price of fuel.
As I mentioned earlier in this thread, originally fuel surcharge programs were just that, a surcharge in addition to a carriers tariffs to cover the volatile fluctuations in the price of fuel.
Dave, I may have a lot to learn as I have said. However I am talking averages, and I have seen a dramatic revenue increase on a per mile (all miles) basis since I went to my current carrier. I am not leaving anything on the table. I am getting paid better even sometimes for the very same loads. My comments in this forum are about what I have experienced with an FSC, and how I don't believe it is living up to what it is supposed to do. I am not condemning any carrier or saying anyone is crooked. I just think that too much is put into the FSC when the bottom line is what should be looked at.
If your carrier charges a fuel surcharge and pays you a fuel surcharge, then a fuel surcharge is part of the bottom line. Don't get hung up on this fsc thing. You don't get paid an fsc, so don't worry about it. The OP who started this thread asked about fuel surcharges. Hopefully he found an answer to his question while wadding through the slop. Does anybody remember what his question was?
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