Fuel Surcharge Programs
#1
11-28-2006, 01:52 PM
Join Date: Jan 2004
Location: Armstrong County, Pa
Posts: 330
Fuel Surcharge Programs
Short and to the point question. How does this work?? I read about companies offering it, but it is gibberish to me.
__________________
Friends don't let friends get taken by "Fleece Purchase". 
#2
11-28-2006, 03:42 PM
Company pays their drivers certain amount of money, say 1 dollar per mile, fuel goes up and your company asks for more money from the shipper to substitute for higher operating costs of the truck, if they are honest they will pass that extra money to you because you are the one who is paying for the fuel!!!
For example, Schneider pays their drivers 90cpm right now and they paid them that much when fuel was 1.50 as well, now its 2.50 and on top of that 90cpm they pay an extra of 19cpm more to you so you make 1.09 right now, (personaly i dont know why would anyone work for less that 1.14-15cpm right now but thats their choice) :!: as simple as it gets.. BTW, i like your avatar!! 
#3
11-28-2006, 04:15 PM
ahh...but it gets more complicated....
especially if you get paid percentage (as many O/O do).... mine was always determined as a percentage of the linehaul.... there is a very foggy sliding scale that most of my brokers and dispatch agents used but it is loosely based on the prevailing cost of fuel from sme EPA or DOE site.....e.g. (and I'm making up the numbers so nobody jump me for them being "inaccurate"): fuel cost average $2.00/gal FSC 10% fuel cost average $2.50/gal FSC 15% over the past couple years since the FSC first appeared I've made as little as 5% and as much as 23% FSC. I always accepted the $$$ with a smile and a hearty "thank you"..... the FSC has (almost) never covered the total cost of my fuel, but damn it takes a bite of it!!!
__________________
Tom
#4
11-28-2006, 05:04 PM
Running percentage loads is tricky, they can allways tell you that the rate which you are getting is surcharged by the brokers/shippers. Id say that 80% of the time they dont pay you surcharge at all, they just bump the rate some today but on your next trip they run it down. They use that FS for theirown benefit and you can take that to the bank !!
Only way to fight it is to have direct contact with the broker/shipper and have that confirmation handy, other than that i dont believe whatever thay say! Thay say Landstar turn over FS to their BCO's 100%, i dont believe a word of it, maybe 30% but not no 100..
#5
11-29-2006, 12:50 AM
In HHG, its based on a % of the linehaul. Lately its been around 10%. We (HHG guys) get less % than freight because our linehauls are way more.
__________________
Mud, sweat, and gears
#6
11-29-2006, 12:52 AM
Originally Posted by BanditsCousin
In HHG, its based on a % of the linehaul. Lately its been around 10%. We (HHG guys) get less % than freight because our linehauls are way more.
I jump for joy when I get a 400M or a 104G now.
#7
11-30-2006, 01:40 AM
The DOE EIA index is published weekly. The FSC starts when fuel surpassed $1.15 per gallon and goes up 1 cpm for each $.05 per gallon increase. Example Fuel cost $2.55 per gallon then FSC 28 cpm.
2.55-1.15=1.40 / 5 = 28 cpm Some shippers pay a % of linehaul which usually top the EIA FSC. Whatever the FSC, the man buying the fuel should get 100% and not all carriers do this for their O/Os.
#8
11-30-2006, 02:32 AM
It is my understanding that beginning next year Landstar will put the fuel surcharge into the line haul when doing their calculations. Basically, they will be getting their standard cut of the fsc along with whatever they get on the line haul rate. If the load pays a $0.28 fsc, then in stead of pay the BCO approx. 65% ( 67% of 98%) if he is power only or approx. 73% (75% of 98%)if he has his own trailer. I expect to see some of their BCO's abandon ship if this proves to be true. :evil:
#9
11-30-2006, 03:59 AM
Originally Posted by GMAN
It is my understanding that beginning next year Landstar will put the fuel surcharge into the line haul when doing their calculations. Basically, they will be getting their standard cut of the fsc along with whatever they get on the line haul rate. If the load pays a $0.28 fsc, then in stead of pay the BCO approx. 65% ( 67% of 98%) if he is power only or approx. 73% (75% of 98%)if he has his own trailer. I expect to see some of their BCO's abandon ship if this proves to be true. :evil:
If that is the case, then Landstarve has taken a page out of the HHG playbook. Earlier this year, all the major HHG companies got together, and re-did the major tarriff that we operate under, the 400N. In a nutshell, what they did was drop our FSC 8%, while at the same time increased everything else 3%. The only problem with this is the fact that of that 3%, we only get 52%-54%, so the van line is essentially getting a 1.5% increase in revenue at our expense. :x |
|
