Owners..Time to put up! Re; Fuel Surcharge

OntarioVanMan

Retired Expediter
Owner/Operator
Well here's my point...

Ever since the fuel charge was invented I am guessing around Desert Storm because of spiriling pump prices. Companies asked their customers for a small surcharge to help themselves and thier O/O's stay in business.
(correct anywhere if my ideas are wrong)
BUT somewhere along the line someone somewhere said if we add it to the top of the invoice we'll get a percentage for ourselves?
We as O/O's believe strongly that the charge be an add-on at the bottom of the invoice hence we get 100%, since WE are the ones incuring the expense.
WHY do companies think they are entitled to any of this charge?
Most of our contracts stipulate we get a % of the bill. (right?)
and that why it's at the top just so they get a piece of the pie.
This is nothing but a cash cow for owners. Why doesn't one company take the lead and offer 100% of the charge ( or is there already?)
Be a leader instead of a follower!
Put the money where it rightfully belongs Into the persons hands that pay at the pump!

REVELATION!! Recently a major major user of our services found out that the charge was going into the companys pocket and backed up the dedicated driver and told my co. that its 100% for him or they walk!!
The % is for the driver they said, They were always under the impression the driver always got 100% of the surcharge.
Now this all happened a few weeks ago we the regular drivers find out that the company keep this quiet and didn't pay the 100% to us doing the same work for the same company as you can imagine the s##t has hit the fan.

So owners buck up and do the right thing! You want us with the newest equipment? in the best of shape? Well that takes bucks BIG bucks!
It's NOT your money!

Thanks for letting me vent :)
 

mcbride

Veteran Expediter
Charter Member
>We as O/O's believe strongly that the charge be an add-on
>at the bottom of the invoice hence we get 100%, since WE are
>the ones incuring the expense.
>WHY do companies think they are entitled to any of this
>charge?

FYI,

We just inquired at Con-Way Now about fuel surcharges. Con-Way takes a percentage. They also have accounts that pay no fuel surcharge.

We asked Panther, FedexCC, Tri-State recruiters at truck show what percentage if any they took. Each of the above stated they paid 100% to the trucks.

mcbride-
--What goes around comes around--
 

Sterling_owner

Expert Expediter
I thought I read somewhere that there was a law in place that required 100% of fuel surcharges to go directly to the person purchasing the fuel.

2 1999 Sterling Semis
2000 Ford F650 24ft box truck
Now hiring driver in Cleveland, Ohio area.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Thanks.. I am aware that some accounts do not pay the charge.

I am sending the names of companys that do pay 100% forward to my proper reps. Maybe just maybe they'll do the right thing but I won't hold my breathe. *lol*
 

abcwine

Expert Expediter
Just to confirm, Tri-State does pay 100% of fuel surcharge to owner operators. Whatever fuel surcharge is billed, the owner operator gets all of it.


abc
 

RichM

Veteran Expediter
Charter Member
FDX CC will pay you 100% of the fuel surcharge,WHEN THEY CHARGE IT.Seems like many shippers are getting a free ride on the fuel surcharge.
 

Twmaster

Expert Expediter
OVM and I are with the same outfit. They are definitely getting their cut of the fuel surcharge :(

--
Mike N
 

davekc

Senior Moderator
Staff member
Fleet Owner
It is still pretty sad that many companies feel the urge to rip-off their drivers. Why a company doesn't pass 100% of a fuel surcharge is beyond me. If one is stupid enough to work for someone once it is discovered it is their own fault. The problem in most cases is that they don't know until they investigate.
By comparison (Dave Nemo Radio Show) it has evolved that there are two cases against Swift relating to HHG miles. Another case of screwing the driver. I am glad they are being exposed. People get tired of hearing company garbage about how they have to screw the driver in order to have a certain account.
Rich M had it right as far as companies that don't pay a fuel surcharge. I solve that problem and don't haul their loads. Plenty of other freight that pays.
 

teacel

Veteran Expediter
Charter Member
Back in 97/98 I had a part time lease (weekends only) to do some loads through DX-Pgh. The rise in fuel was just starting and I amended my contract to DX, demanding a fuel surcharge of anything over $1.29.9. They called me into their office and decided to raise the per-mile load than to deal with the ups and downs of a fuel surcharge. That work then because fuel did go back down some and it was good for me.

Now with this outrageous rise in fuel they would have to be charging way too much to compete with anyone. I would demand they pay me the fuel surcharge or to explain why they aren’t giving it to you IC’s. I would surely quit delivering their loads, then file a personal law suit against them. Win/ Loose /Draw

I don’t know if you guys remember back in 96/97 when they were being investigated for stock fraud and got rid of some people when they had all that public exposure. I don’t think they can afford or want anymore fame right about now.
 

Twmaster

Expert Expediter
I have a fairly decent dedicated run every weekday so I am going to stay put for now. However, I plan on moving off the east coast this summer so after that I'll be looking elsewhere. I am tired of seeing the worker bees getting stung all the time.

--
Mike N
 

mcbride

Veteran Expediter
Charter Member
Hi all,

I don’t think there is any actual law in place regarding fuel surcharges. I very well could be wrong though..lol The last I heard of any legislation regarding fuel surcharges was “H.R. 4441, The Motor Carrier Fuel Cost Equity Act of 2000":
http://commdocs.house.gov/committees/Trans/hpw106-96.000/hpw106-96_0f.htm

There is at least one article in back issues of Land Line: http://www.landlinemag.com/Archives/2000/july2000/News_Surcharge.html

I have also heard just recently that there is some discussion with regard to Landstar and fuel surcharge issues, although I have found nothing factually to indicate any problems. I whole-heartedly agree with OVM, the people who are putting the fuel in the vehicles should be getting 100% of any fuel surcharges. I further agree with Davekc, we just should not take loads that don’t pay fuel surcharges, especially out west or northeast! I know there may be others out here leased with or runnng for companies who are under the assumption that they are getting 100% of any fuel surcharges that the companies are charging...my advice is to check as we did.


mcbride-
--What goes around comes around--
 

Numero_uno

Expert Expediter
McBride,
I'm about to start with Landstar, could you tell what it is you heard about them and thier practices paying the fuel surcharges to the drivers?:eek:
 

davekc

Senior Moderator
Staff member
Fleet Owner
I heard the same thing with landstar not passing all of the surcharge to driver. But I as well have nothing factual to indicate otherwise. I thought there was a investigation by ooida on this but I can't be certain. With their system it could have involved one of the agents and not nessessarily the company. I will have to do some looking or call ooida and see what they say.
 

Numero_uno

Expert Expediter
I would be very interested in finding out what the problem is with Landstar before I sign on with them. If you get any info please post it here and thanks for your input.
 

mcbride

Veteran Expediter
Charter Member
hey #1,

I should have left the part of my message about Landstar out until I got my facts straight. At this point all I have heard is rumor and innuendo regarding fuel surcharge problems with Landstar. I am glad that Davekc stepped in regarding Landstar as he drives for them and will be able to come up with an accurate understanding of what is going on....if anything. I have to learn to keep my big mouth shut. lol...

mcbride-
--What goes around comes around--
 

cashflow

Expert Expediter
LEA does pay 100% of fuel! I would know I am an Agent for LEA. Our system does not allow an Agent to arbitrarily change any percentages in our load system. I could imagine that there are ways in witch you could try to manipulate the system, but it would be difficult and not worth loosing your Agency over .08 to .10 a mile.
I like many other Agents for LEA frequently read the forums and we appreciate the depth and talent at EO. My one request would be get good information, if needed site your source and be certain of your information. Just remember there are a lot of folks who enjoy and read your comments with great interest.
:)
 

mcbride

Veteran Expediter
Charter Member
Cashflow,
You are right and I apologize for my part in the above postings. I should not have alluded to unsubstantiated information I read posted on another site.
mcbride-
--What goes around comes around--
 

davekc

Senior Moderator
Staff member
Fleet Owner
I drive for panther not landstar. As relating to the other posts, it was the fact that landstar was being investigated for fuel surcharge issues or billing conflicts with drivers. I don't want to trash anyone without the specific facts. Since one is a agent, he should know what they were being investigated for. Remember, just because one is being investigated for something, doesn't mean they are guilty.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Now I have an update. Go to www.ooida.com They have a class action lawsuit against Landstar. Go to their site and on right hand side click court cases, and click on Landstar. At that point you can read the list of complaints and court proceeding.
 

mcbride

Veteran Expediter
Charter Member
>I drive for panther not landstar.
Dave,
I am sorry about that...I do know this....you have a great looking truck...geesh, my head has been in the clouds lately...too much time home! Funny thing is we came home so we could clear our heads...lol

mcbride-
--What goes around comes around--
 
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