100% of FSC ?

[pjjjjj]

I've been meaning to make a post about this for some time now. Wanted to bring it to anyone'ss attention, to be aware of wording. People can say things in certain ways to make you believe certain things, which aren't true, and yet in fact, they didn't actually tell a 'lie'.

Not mentioning any names, because that isn't the intent of this post, but I was speaking to a recruiter for a large expediting company not too long ago, and he was doing the usual.. you know, 'lips moving,.. you know what's coming out' sort of thing.

This particular company pays a dollar figure per mile, which is (supposedly) a percentage of the amount billed to the client, plus 11% FSC. He was telling me how they pay the OOs '100% of the FSC'.

This didn't make sense to me, becuz if a load is paid on a per-mile basis, how is the 100% of the FSC determined? You know what I'm saying? ie, if you get (for ease of discussion) $1 per mile, and the company is billing the customer $2 per mile, and the fsc is 11%.. does the OO get $1+11%, or $1+(the billed amount of $2x11%)? Is the customer being billed 11% of the total mile-rate, or 5.5% of the total mile-rate, with the OO getting 100% of that?

So I called him back and we had a little discussion about.. what do you mean 100%, 100% of what exactly?

100% of the 11% on the $1 per mile?
or
100% of the amount of FSC billed to the customer?

What is was.. was the customer is billed the (for discussion purposes only) $2 per mile plus 11% fsc, so $2 + $0.22 = $2.22; the carrier then pays the OO $1 per mile, plus 11% of the $1 per mile, so $1 + $0.11 - $1.11.

So I asked, so how can you say you are paying the OO 100% of the fsc then, when in fact it is only 50% of the fsc billed???????

He said, well, the OO gets 100% of his 50%, they each get 100% of their respective 11%.. geez that makes sense huh??? It's all about the wording!!!!

And I'm telling you, this guy was GOOD! He had NO shame whatsoever, in blatantly exclaiming that they paid the OOs 100% of the fsc, when in fact, they were getting the same percentage of fsc as their percentage of their mile rate.

So.. newbies and oldbies alike.. beware. Don't assume you are on the same page when speaking particulars. If the recruiter tells you they pay 100% of fsc, get an example, in writing. To me, if the carrier is billing the customer $2 x 200 miles = $400 + 11% or $44 = $444, and the OO is supposed to get 50% of the mile rate, plus 100% of the FSC, that would mean the OO would get ($400 x 50%) = $200 + ($44 x 100%) = $44, with total being $244; but in reality, the OO was getting $200 + $22 = $222, and still being told he's getting 100% of the fsc.

Note: the above numbers are ridiculous and only for examples of how the percentages can work, for you or against you.

 

[CharlesD]

The same word of caution goes to leased on OOs or independent folks like myself. Carriers and brokers alike are skimming off the surcharges. They all don't do this, but enough do and it's just flat wrong. If an amount of money charged to the shipper is labeled as a fuel surcharge, shouldn't the entire amount go to the one buying the fuel? If a shipper is being charged $50 for fuel, that $50 should be passed all the way to the driver, no matter how many times the load changes hands, but we all know that's not happening. It does seem now that brokers and carriers alike know that people are onto the scheme and now they're being more careful how they word things. "Be wise as serpents and innocent as doves."

 

[LDB]

Companies are notorious for mistreating operators, whether it's skimming fsc money or overcharging the weekly QC fee or paying rand mcnally short miles or whatever. Operators must diligently watch everything in their settlements and before signing on with a company due careful research because as you say, if their lips are moving.

 

[CharlesD]

Another word to the wise. Many brokers and carriers calculate mileage on the shortest possible route, not on the practical miles driven. Most of the carriers you're leased onto, or folks who are brokering you the loads for the independents, will give you a minute or two to decide if you want to accept a load, so use that time to calculate the actual miles for the run if you can. Whether you run it through your GPS, Streets and Trips, or whatever source, knowing the actual miles can help you in making your decision. For example, when I was a leased on operator, the carrier I was leased to offered me a load from Maine to Michigan. This carrier doesn't have Canadian authority, but the mileage on the run was based on the shortest possible route which was through Canada. I had to avoid Canada, which added quite a few miles to the route. At the time I was rather new to this business and I didn't verify the miles on my own. Looking back, I probably shouldn't have taken the load, or I should have insisted on more money because of the actual miles being driven. If the carrier doesn't have Canadian authority and they tell you you're not allowed to go through Canada because of that, but they still insist on using that routing to determine your pay, there's just something not quite right about that. Since I'm independent, I still use the same principle when bidding on loads. I run the miles independently to get a good idea of how much I will actually have to drive and I bid accordingly, even if what I come up with differs drastically from what the broker or shipper is telling me.

 

[x06col]

Y'all just get way too wrapped about fsc. Bottom line, if it don't pay the dollars needed for all things--miles, difficulty, finger printing, etc., leave it alone. Who cares what someone else is making, if it is enough for you. It's just a mentality problem.

 

[davekc]

I don't advocate running cheap, but all to often we see many trying to make a statement rather than trying to make money.

 

[mjolnir131]

OK sorry my Internet is really slow out here in the middle of nowhere Texas otherwise i would look up this info myself but

there is a congressmen out there who is trying to get a bill passed that all FSC 100% goes to the guy paying for the fuel period so look him up if you think this is a good idea. also he needs people telling him that using the refer as an excuse to skim is a big no-no as well. that refer takes the same amount of fuel whether it's moving or sitting still skimming the O/Os money under that pretense is wrong to

 

[x06col]

I'm confused. Why would a refer be running, IF not under load???

 

[dhalltoyo]

I am all about making money..."The Old Fashioned Way".

Cost per the return.

And when an offer is made that does not even remotely cover the cost...I find it necessary to state the obvious, because I find it very strange that folks can't seem to understand that fuel prices are at an all time high and the loaded mile rate has not changed (For my class of trucks) for years.

Got a calculator? Naw, it doesn't require one.

Maybe I'll plant some petroleum trees out back so I can just pick off a few gallons when needed.

Now doesn't that sound stupid?

Agreed, but no more than someone asking me to run at a price less than what it requires me to operate and actually pay myself too. There's a novel idea, I am actually supposed to make a living. I am getting tired of the paper boy driving a new car and my wife taking the bus.

Just a little humor to get my point across.

 

[greg334]

I am all about making money..."The Old Fashioned Way"............


.................There's a novel idea, I am actually supposed to make a living. I am getting tired of the paper boy driving a new car and my wife taking the bus.quote]

I’m confused, the old fashion way?


But you are tired of the paper boy’s success, that does not sound old fashion to me.

 

[cheri1122]

I am getting tired of the paper boy driving a new car and my wife taking the bus.
Little bit of 'class envy' there?
Maybe you & Mrs Reverend are supposed to just "offer it up"....along with the offer to "toss more steak & shrimp on the grill" at your beachfront condo, eh?