Are you truly receiving 100% of actual FSC?

C&J

Active Expediter
Fleet Owner
US Marines
When the DOE (Department of Energy) National fuel index national average falls into one of the following categories, a fuel surcharge will be added to the net charges on a single shipment.

Fuel Index Effective 06/19/2018
$3.244........................................................ $0.42
 

piper1

Veteran Expediter
Owner/Operator
Unless you see the actual billing the carrier sends to its customer you just have trust them or spot check them now and again by asking to see the actual billing. There is no "set" FSC formula...every carrier is different and many have different FSC rates for different customers.

If your contact spells out a specific FSC rate scale, which is more common, then that's what you get even if the carrier charges more....and most make some money on FSC.

Basically though, all that matters is you get the total rate per mile you need..and that you know your costs so that if fuel jumps say.....10 cents a gallon... you know what that does to your cost per mile and you adjust accordingly. 60 cents a mile plus 40 cents FSC or 90 cents a mile plus 10 cents FSC....still 1.00 a mile and all you need to know is if that's what you need or not.

To answer your question, at L1 anyways, we get every penny of the FSC, but all I care about is the end rate meeting my needs.

The old standard used by many carriers to pay their contractors was

Current fuel price - $1.25 then divide that by the mpg for your vehicle type, typically 15 for a van, 10 for a straight and 6 for a TT. Some would pay a bit more for reefer units or California miles.

So at the current 3.244 for example, a van would get about 13.3 cents per mile.
 
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Dynamite 1

Moderator
Staff member
Fleet Owner
I was trying to figure out how he got to .42 myself. The formula you used is the correct one for EIA calculations !!
 

piper1

Veteran Expediter
Owner/Operator
I was thinking of the old standard sheet from FedEx....I thought the straights were at 10 but that might have been for C units and maybe D's were different. I know the van and TT base mpgs were right.
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
In addition to Piper1's comments, keep in mind that the DOE only suggests a fuel surcharge, they have no authority to require it be collected nor paid. The carriers have no obligation to pay a FSC to a contractor unless it is required by a contract or lease agreement with a contractor. I believe that many carriers pay a FSC based on the formula similar to that mentioned by Piper1 regardless if it is collected; some may not. Some customers either refuse to pay a FSC while others, such as the DOD, have their own lesser FSC. Some pay based on a percentage of the agreed upon tariffs and others pay based upon various mileage computations. In any event, the driver's decision to accept or reject a load offer is best based on the total revenue to be received for a given run.

I don't recall the specific regulation; however, the carrier is required to "show" a contractor that is paid on percentage, a copy of the invoice of a given run. A carrier is not required, nor are they likely, to send you a copy of their invoice for privacy reasons.
 
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C&J

Active Expediter
Fleet Owner
US Marines
Good Lord, I wasn't discussing my truck....I went by what the DOE suggested rate was for the week.... My husband's tractors are getting .41 FSC on top on there milage, and accessories charges. Another brokerage was offering .26 FSC, yet charging, .42 to shipper....yet stating they pay 100% pass thru to driver....so I thought it was food for conversation... I was attempting dialogues.... I can see why their are only 25 regulars posting on here....
 

BigStickJr

Veteran Expediter
Retired Expediter
Hang in there. You’ll develop a thick skin.
Some is for fun. Some is to stimulate conversation.
Few are genuinely mean by nature.

So , you caught a crook. That’s good.
There’s no regulation to guarantee the pass through.

It is good business to be honest about it.
 
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BigStickJr

Veteran Expediter
Retired Expediter
Modern D’s are 9-10 with some pushing 12.
Modern T-T are 6.5-8 with some pushing 10.

Zorry’s Volvo is 9.7 at 60-70 mph running I-95 to I-35.
He stayed in low 10’s all those years in Ca.
Full 500 hp, full tandem, full skirting.
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
C&J, Your title of this thread asked a question, you then gave one comment concerning a current example of FSC. Piper1 and I were clarifying for anyone lurking in the audience how FSC programs vary from carrier to carrier to contractor to contractor. Each of our comment were based on personal knowledge of FSC programs at the carrier level. You brought up a worthwhile topic; please continue to do so.
 

BigStickJr

Veteran Expediter
Retired Expediter
I think she’ll stick around.
She’s knowledgeable and has a sense of humor.

And once she starts banking those trophy points she’ll be addicted.
 

C&J

Active Expediter
Fleet Owner
US Marines
C&J, Your title of this thread asked a question, you then gave one comment concerning a current example of FSC. Piper1 and I were clarifying for anyone lurking in the audience how FSC programs vary from carrier to carrier to contractor to contractor. Each of our comment were based on personal knowledge of FSC programs at the carrier level. You brought up a worthwhile topic; please continue to do so.


Hi Terry..... I apologize for my :hissyfit:...... I was tired, long day, read things wrong...... Sadly I can't blame this:mad: on my Husband:(........ :booboo:
 
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piper1

Veteran Expediter
Owner/Operator
You can ALWAYS blame things on your husband....at least that's what my wife says....and I know enough not to disagree.
 

C&J

Active Expediter
Fleet Owner
US Marines
I have a "slight feeling" this is an accurate picture of my husband last night when I called him to...ummmm...b!tch.... I mean chat;)Charlie-Brown-2.jpg He "CLAIMED" to be unloading on an interstate road construction zone..... hmmmmmmmmmmm...... I said, "How hard can that be"!!!! "It's not like you are lifting the machines off by hand!"................. Crickets..........:oops:
 
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Worn Out Manager

Veteran Expediter
Owner/Operator
US Air Force
Good Lord, I wasn't discussing my truck....I went by what the DOE suggested rate was for the week.... My husband's tractors are getting .41 FSC on top on there milage, and accessories charges. Another brokerage was offering .26 FSC, yet charging, .42 to shipper....yet stating they pay 100% pass thru to driver....so I thought it was food for conversation... I was attempting dialogues.... I can see why their are only 25 regulars posting on here....
25? Who let 10 more in?

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