about Flat rate Fsc

[OntarioVanMan]

after a sampling of just my last 5 loads...IF with my last carrier that paid flat rate..approx .15 cents...mid west average they use...which is like the 3rd lowest average in the country!

Taking the differences and multiplying by the total miles...THEY would have kept....$1181.40 of MY fuel costs.!!

BUT I now am that much better off.....what could you do with that much extra money?

 

[layoutshooter]

after a sampling of just my last 5 loads...IF with my last carrier that paid flat rate..approx .15 cents...mid west average they use...which is like the 3rd lowest average in the country!

Taking the differences and multiplying by the total miles...THEY would have kept....$1181.40 of MY fuel costs.!!

BUT I now am that much better off.....what could you do with that much extra money?

What flat rate FSC are you talking about? I am lost AGAIN.

 

[OntarioVanMan]

What flat rate FSC are you talking about? I am lost AGAIN.

Should I have said flat rate formula that some carriers use? Instead of paying 100% of the FSC?

Leo gets flat rate FSC based on NATIONAL average...

my samples are from the CV FSC formula

 

[layoutshooter]

Should I have said flat rate formula that some carriers use? Instead of paying 100% of the FSC?

Leo gets flat rate FSC based on NATIONAL average...

my samples are from the CV FSC formula

Too bad there is not a standard formula. No matter what system is used it will seldom work out best for the driver.

 

[OntarioVanMan]

Too bad there is not a standard formula. No matter what system is used it will seldom work out best for the driver.

I can't speak for you straights...I haven't a real clue..as far as CV's tho....the flat rate system sucks for drivers..it is a money pit for carriers....no wonder they push it so badly...no wonder O/O's are going broke....$1100 is a lot of money over only 5 loads....I am in the wrong business...

PS there should be NO formula....you should get 100% of what is billed...

 

[layoutshooter]

I can't speak for you straights...I haven't a real clue..as far as CV's tho....the flat rate system sucks for drivers..it is a money pit for carriers....no wonder they push it so badly...no wonder O/O's are going broke....$1100 is a lot of money over only 5 loads....I am in the wrong business...

PS there should be NO formula....you should get 100% of what is billed...

Yeah, you should be.

 

[Jefferson3000]

I can't speak for you straights...I haven't a real clue..as far as CV's tho....the flat rate system sucks for drivers..it is a money pit for carriers....


PS there should be NO formula....you should get 100% of what is billed...

Not sure what your former carrier did. I know I'm not makin' a killing off of CV freight, whether you want to call it the tariff OR the FSC. Why do SOME carriers (I can't speak for all) use a "flat rate" or a "sliding scale" type surcharge? Because there are times when my company is not even making as much "FSC" money on a load as I am paying out to keep up with the price of fuel. Since the beginning of December I have watched CV rates go into the toilet for everyone, even while the fuel prices are still rising.

Here's what I do: My guys get a base rate plus a steady surcharge, OR they get a certain percentage of the load, depending which is greater. But because I have a small company and can make the call, there are times I try and give a driver much better. For example, last fall, a certain large 3PL sent an email about a 618 mile van load to be picked within 2 hours. My closest van was 170 miles away. Well, that email was resent several times, so I contacted them and made an offer. I called my guy and this is what I offered him: Instead of loaded miles plus fuel, plus $30 or so DH money, I offered him an extra 150 loaded mile pay, including that "flat rate" surcharge.

So in the end, my driver received base rate, plus fsc for 768 miles, instead of 618.

For us, the flat rate works well, as a driver always know what he is getting as a minimum, without needing 15 minutes to mull over to see if he wants it or not. Plus, we normally don't mess with those little 150 milers going between auto plants in the midwest.

 

[OntarioVanMan]

Just the standard formula them flat rate carriers use...
I realize some carriers get better bid rates based on size and past performance and all that stuff I am not privy to...

But I do see what I and my buds are getting and that sure makes the issue sure stand out....

I am quite sure people like yourself and CharlesD have a flexible system and from past posts know in your heart and mind what is fair for your drivers...as you both were just drivers at one time as well and know the struggle out here...

Great job...to both of ya's...

 

[Jefferson3000]

Just the standard formula them flat rate carriers use...
I realize some carriers get better bid rates based on size and past performance and all that stuff I am not privy to...

But I do see what I and my buds are getting and that sure makes the issue sure stand out....

I am quite sure people like yourself and CharlesD have a flexible system and from past posts know in your heart and mind what is fair for your drivers...as you both were just drivers at one time as well and know the struggle out here...

Great job...to both of ya's...

I sure hate when some carriers take a system that could be a useful tool for both the carrier and owner operator and use it to screw the O/O. That's just wrong. Glad things are better where you are now.

 

[davekc]

Smaller companies have the flexibility to review more loads on a individual basis whereas larger carriers are on a more automated system. Many do take advantage of the FSC system and pocket a portion of the fuel. That isn't speculation, that is a fact (and they know who they are). Once again, "sins of the past" are haunting some of these carriers that engage in those types of practices and are struggling to keep their fleets adequately sized. As they pay more for outside carriers to haul their freight, they have to squeeze their current contractors to remain profitable.
Some keep a portion, and some do what I would call redistribution. By that I mean they take a portion of the FSC and redistribute it under their relocation costs. DH, relocate, empty moves or whatever one wants to call it.

 

[OntarioVanMan]

Smaller companies have the flexibility to review more loads on a individual basis whereas larger carriers are on a more automated system. Many do take advantage of the FSC system and pocket a portion of the fuel. That isn't speculation, that is a fact (and they know who they are). Once again, "sins of the past" are haunting some of these carriers that engage in those types of practices and are struggling to keep their fleets adequately sized. As they pay more for outside carriers to haul their freight, they have to squeeze their current contractors to remain profitable.
Some keep a portion, and some do what I would call redistribution. By that I mean they take a portion of the FSC and redistribute it under their relocation costs. DH, relocate, empty moves or whatever one wants to call it.

Exactly Dave....I do hope some day it will come back to bite them in the butt....

 

[jujubeans]

after a sampling of just my last 5 loads...IF with my last carrier that paid flat rate..approx .15 cents...mid west average they use...which is like the 3rd lowest average in the country!

Taking the differences and multiplying by the total miles...THEY would have kept....$1181.40 of MY fuel costs.!!

BUT I now am that much better off.....what could you do with that much extra money?

Why, I'd pay off a charge card needed to help defray costs from the last carrier that gouged us.

 

[greg334]

Well when you are chasing pennies, you overlook dollars.

The real point should be when do you have the room to negotiate and what are you in context of the system you operate under - a contractor or an employee.

The idea of a flat rate FSC steps away from the idea that you are a contractor - either you accept the rate they give you or you don't and go somewhere else.

This leads to trying to examine what they are doing and you start worrying about who gets charged what and how you get this at 100% or that at 62.5%, then you should realize that the carrier locked you into a bad situation.

Regardless how you look at it, the FSC isn't the key, the bottom line rate is.

 

[OntarioVanMan]

Exactly Greg...the rate per mile...bottom line, no matter what crap is in the middle...as long as one gets what they feel they need to be profitable....

 

[LDB]

On those 5 loads how much deadhead was involved to get to the pickup and how much deadhead was involved getting from the consignee to the next layover location? If you had been paid the flat rate fsc on loaded miles plus all those dh miles what would the comparison be? IOW, if you were paid flat rate fsc on every mile you drive how would it compare?

 

[OntarioVanMan]

On those 5 loads how much deadhead was involved to get to the pickup and how much deadhead was involved getting from the consignee to the next layover location? If you had been paid the flat rate fsc on loaded miles plus all those dh miles what would the comparison be? IOW, if you were paid flat rate fsc on every mile you drive how would it compare?

I know you have different way...cause you get paid for every mile...others don't...

 

[LDB]

Yes, I was just curious if you had made that comparison as well. If you get flat rate fsc on all miles it's not bad but if it's only on loaded miles then it's a bum deal on most loads. There are a few Ford etc. loads where flat rate beats 100% fsc.

 

[OntarioVanMan]

Yes, I was just curious if you had made that comparison as well. If you get flat rate fsc on all miles it's not bad but if it's only on loaded miles then it's a bum deal on most loads. There are a few Ford etc. loads where flat rate beats 100% fsc.

any of my Ford loads have been around .22 cents Leo...

 

[Steady Eddie]

FSC is only on paid miles. OVM gets empty move pay with no FSC, a very good thing. I'm at the "standard" FSC. I have yet been paid for empty move, seems you are just hung out to dry, so I move when I have to on my own dime....

Here is the problem with the "standard" FSC.

The billed amount may be 32 cpm, I get .16 per mile. The rest is in the "pot" to be given out to those that need more? S/T and T/T.

OR;

Billed amount is at the "standard" FSC and helps in the bidding to get the load.

Some customers do not pay for any FSC but, the company will always pay the FSC, even at a lower rate, pulled from the "POT".

I want all loads to stand on their own. Pay me the billed FSC and I will come out ahead, always.

 

[Jefferson3000]

any of my Ford loads have been around .22 cents Leo...

Are this Ford loads "vannable" or do they require a Sprinter?