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40/60 or 60/40

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sweetbillebob

Seasoned Expediter
My wife and I are hiring on with a fleet owner who has a contract with Fedex Custom Critical. We have a choice of a 40/60 split where we pay for nothing or a 60/40 split where we pay for fuel. Which is the best way to go??
 
ATeam

ATeam

Senior Member
Retired Expediter
Does the truck you will use have a generator?

What is your expeted mpg?
 
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sweetbillebob

Seasoned Expediter
Generator yes, expected MPG unknown, Hino 40' truck. I have no specifics yet. What would be the MPG that is the breakpoint??
 
LDB

LDB

Veteran Expediter
Retired Expediter
I strongly urge you to read back at least one year in the general, newbies and recruiter forums. This has been discussed in depth as you will find. The short answer is that usually the 60 side makes more money if 100% of the fsc is passed along, the truck isn't a dog, the driver's drive sensibly and deadhead isn't thought of as candy.

Leo Bricker, 73's K5LDB
OOIDA Life Member 677319, JOIN NOW
Owner, Panther trucks 5508, 5509, 5641
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.
 
Tennesseahawk

Tennesseahawk

Veteran Expediter
If FXCC's fsc has been holding steady, I'd say 40/60. Don't put fuel on yourself in this day and age, if you're a driver.

You can read back a year, as Leo says. Just remember that a year ago, expediting was quite a different beast as it is now. Glad you asked the question as it needed refreshing.

-A bore is a person who opens his mouth and puts his feats in it. - Henry Ford
 
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sweetbillebob

Seasoned Expediter
You said "remember, expediting is a different beast than it was a year ago" As we have not expedited before, could you explain what you mean please!
 
Tennesseahawk

Tennesseahawk

Veteran Expediter
Fuel is .80+ higher now, and freight is a little slower, and bound to get even worse. It would help to read back a year, but keep those things in mind. A year ago, I would've said 60/40. Now, it's a no-brainer to me. Stay away from fuel! It will cause you to be overly cautious when you need to dh. You don't get fsc for empty miles.

-A bore is a person who opens his mouth and puts his feats in it. - Henry Ford
 
ATeam

ATeam

Senior Member
Retired Expediter
>Generator yes, expected MPG unknown, Hino 40' truck. I have
>no specifics yet. What would be the MPG that is the
>breakpoint??

It sounds like you should compile a list of questions to ask your fleet owner. Do you see how each response you get in this thread raises another question? Keep reading, keep writing down your questions.

As you read, some of your questions will be answered, and others will rise as more important than others. Knowing more about the kind of truck you will be in will help people here answer better (reefer? lift gate? lift axle?). Without specifics, it is more difficult to answer.

Your fleet owner will probably know what the truck's mpg is with the last team, if the truck has a history, and know what similar trucks in his or her fleet do.
 
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sweetbillebob

Seasoned Expediter
I understand the math of fuel being higher, is the sfc not covering the increase if it being passed on at 100%? And, the freight being slower, how is that part of the equation. If the wheels are not turning, you are not using fuel, if freight is paying less, than that is part of the equation. Are rates per/mile down from a year ago? (Forgive me for being an "engineer" in a past life!)
 
ATeam

ATeam

Senior Member
Retired Expediter
>Fuel is .80+ higher now, and freight is a little slower, and
>bound to get even worse. It would help to read back a year,
>but keep those things in mind. A year ago, I would've said
>60/40. Now, it's a no-brainer to me. Stay away from fuel! It
>will cause you to be overly cautious when you need to dh.
>You don't get fsc for empty miles.

It may be a no-brainer for a solo driver and owner-operator leased to a carrier different than FedEx, but if you are a team starting in a fleet owner's truck with FedEx, I would not rush into the 40/60 choice without knowing more.

At FedEx, you DO get fsc for empty miles.

On the load we will pick up Monday, we will receive a fuel surcharge of $42.26 on the deahdead miles we will drive, and $131.77 fsc on the loaded miles. It is more complicated than that, and fsc is not paid in all cases. This is not the place to explain the details. FedEx and your fleet owner should be able to provide all the details you need to make an informed decision.

My point is that compensation arrangements vary from carrier to carrier and from fleet owner to fleet owner. What may be a no brainer for one expediter may be the wrong decision for another.

To make your own best decisions, there is no way around it. You must do your own research and become informed. Since you have already selected a carrier, it would be best to solicit advice from people who are familiar with FedEx's compensation package.

For that, I would turn first to your fleet owner. If he or she is giving you the choice, there should be no trouble at all in asking the fleet owner to run you through a couple of previous loads to illustrate how the different packages will play out for you.

FedEx's fuel charge policies are spelled out in writing. Your fleet owner should be able to provide the document to you.
 
ATeam

ATeam

Senior Member
Retired Expediter
I'm sending you my phone number by private message. Call me if you wish.
 
LDB

LDB

Veteran Expediter
Retired Expediter
Personally, I consider 8mpg the line in the sand as it were. Anything below that and the fsc isn't going to put fuel prices around $1.25 where they should be. I've driven 3 different trucks and each one got right at 8mpg overall average.

Leo Bricker, 73's K5LDB
OOIDA Life Member 677319, JOIN NOW
Owner, Panther trucks 5508, 5509, 5641
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.
 
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