Contract Questions

[ShadowMaster]

First of all, I am a seasoned Class A driver-switching to Str8 Trucks. Today I recieved a call from a guy looking for a SubContractor. As a "A" driver, I am not familiar with this... So I looked over the contract and I have some issues with it. One of which is load %- Is 40%, owner buys fuel a normal thing?
He offers no benefits- but wants me to Pay for maintance and him reimburse me (which I wont do). He is leased onto Fed-Ex CC. He only wants to pay 40% of Detention time also.

I am just wondering-what is normal for a SubContractor's contract.

 

[x06col]

"Only 40%"!! And you have "nothing" invested but your time and some clothes??

 

[davekc]

I would say a 60/40 plan with the driver paying for fuel will net you more money. That is assuming you can manage your own finances. My personal opinion on detention is that the fleet owner is entitled to something as his truck is tied up and is denied income while it is waiting. I do however think the driver should get more than 40 percent since they are waiting as well.
With regards to maintenance, it depends on what you are talking about. A oil change or items above the $50.00 to $100.00 mark can be paid by the owner via a comcheck or charge card. Little items like a light bulb can be paid by the driver and reimbursed upon recieving the receipt. I wouldn't want a driver calling me at 3AM to purchase a $3.00 bulb.
Some of it is just common sense.

 

[LDB]

Every time I've run the numbers the 60% plus 100% fsc side comes out ahead of the 40% only side provided deadhead isn't excessive. My people get 60% plus 100% fsc. Detention and layover are split 50/50. Last time I checked minutes were minutes no matter who they belonged to so they should be equally compensated.

 

[ShadowMaster]

I would say a 60/40 plan with the driver paying for fuel will net you more money. That is assuming you can manage your own finances. My personal opinion on detention is that the fleet owner is entitled to something as his truck is tied up and is denied income while it is waiting. I do however think the driver should get more than 40 percent since they are waiting as well.Little items like a light bulb can be paid by the driver and reimbursed upon recieving the receipt. I wouldn't want a driver calling me at 3AM to purchase a $3.00 bulb.
Some of it is just common sense.

No, I was refering to little driver repair items, as I always carry a kit and some tools- I meant anything along the terms of a B-Serv- it is just the way his contract is worded. On the Detention time issue- it is just that I am used to a certain amount of money per hour.

 

[ShadowMaster]

"Only 40%"!! And you have "nothing" invested but your time and some clothes??

I know I have talked to others that paid for the fuel as well-but most of those guys did get the higher Load %.

 

[jaminjim]

If your signing on with Fed Ex I'm not sure that it would benefit you any to do the 60/40 because of the way they set up their FSC.

 

[ThibodeauxBayou]

ShadowMaster,
I was signed on with FedEx for 27 months.

If I were you, this is what i'd do.

Begin with 40/60. Keep a record of all miles DH-Loaded & any empty miles. Jot down fuel expenditures. Tolls. After you've accepted a run, get with your fleet owner and record also the FSC

After a period of time, you should have enough information to intelligently make the decision to do 60/40 or 40/60.

If you're running smart ,the extra 5-8% by doing 60/40 should be hard to resist.

 

[ATeam]

It sounds like you are looking into expediting for the first time. Expediting is unique in the trucking industry. To better understand it, you might want to read Introduction to Expediting, as well as continuing to read the Open Forum.

The fleet owner wanting you to pay for significant repairs (not $3.00 light bulbs) is a red flag for me. There are numerous stories out there of drivers that got burned because they laid out money for truck service or repairs, and they did not get reimbursed because the fleet owner was either not able to pay, or because the fleet owner disputed the price of the repair, or because the fleet owner did not agree the repair was needed.

Payments for repairs can be made directly to vendors by several means. Many fleet owners use these means to pay service providers directly, and they offer the same 40/60 or 60/40 split other fleet owners do.

It is not in your best interests to use your money to keep a fleet owner's truck running that the fleet owner is contractually obligated to keep running. The fleet owner's money should be used to keep the truck running, not yours. You are the fleet owner's independent-contractor driver, not his bank.

Regarding the 40/60 v. 60/40 decision, Diane and I contract with FedEx Custom Critical and previously drove fleet-owner trucks with the same carrier. We are familiar with FDCC's fuel surcharge program and have run under both arrangements with different fleet owners. There is no doubt about it. If the fleet owner is paying for the fuel and keeping the surcharge, you are in an arrangement that benefits the fleet owner more than you. If the driver is paying for the fuel and keeping the surcharge, the arrangement favors the driver.

An important benefit of the driver paying for fuel is it provides more freedom to deadhead 500 or 1,000 miles to get home if you have to. If the fleet owner is paying fuel, things might get difficult if he does not feel you should deadhead that far on his fuel money for personal reasons. If you are buying the fuel, there is still wear-and-tear on the truck to consider for personal deahdead miles, but the fuel issue will not rise.

Regarding minor repairs, a fleet owner once surprised us by handing us $500 cash the day we started with him. The money was to fund minor repairs. When a minor repair was made, we sent in the receipt and he reimbursed us the cost. When we left, he collected back his $500 out of money owed to us. That was fine, since we already had the $500 cash in our pocket from when he gave it to us the first day.

 

[jaminjim]

Is the only way to come out on top when your paying for the fuel @ the Fed is to beat the average MPG that they have it set at? I know you can do better with one that varies by customer, but how do you do better at the FED?

 

[ATeam]

I'm not sure what you mean when you say "come out on top when paying for the fuel @ the Fed."

Regardless of the carrier or compensation arrangement, the less fuel you use to get to, pick up and deliver the freight, the better off you are.

 

[greg334]

Well Phil, its obvious isn't it?

I think he is saying that FedEx has the best FSC system right now, a flat rate for all Authorized miles and if you play the game right, you will come ahead with the numbers and in your pocket.

 

[LDB]

I believe the question being asked is with a fixed fsc system are you better off on the 60% side or the 40% side.

 

[jaminjim]

With the fixed rate that the fed pays the contractor, Isn't it MUCH harder to come out on top when doing the 60/40 all you have to do is move to far off of the route or run your generator to long and I would think that your back to even.

That's not a knock on the Fed Phil, it's just one of those it is what it is. I'm not saying that you can't come out on top doing a 60/40 with them, but I'm positive that I can with the two headed Cat

 

[arkjarhead]

Shadowmaster,
I have a Class A CDL. I'm out of trucking right now because of health issues. I've done both tractor trailer and straight trucks. Here is what I would do if I were to get back in. First I would get approved at a couple different carriers as a fleet driver. I'm listing carriers in no particular order with the reason I would apply beside it.

Panther- They will let me book my own backhauls after sitting for a while.
Tri State- They can keep me loaded with expedite and truckload freight.
TranStewart- I know the people, and they have kept me busy in the past. Plus they know you by name not number.

Of course I would be climbing into a tractor trailer and not a straight truck. If the owner wanted me to pay for fuel that would be cool as long as there was an apu or gen./rooftop ac on the truck. You can do whatever you want to, but that is what I would do. You will have a lot less competition in a tractor trailer.

One another note if you look at the Newbies FAQ forum we have discussed contracts numerous times so you might find something there we are missing here. Good luck.

 

[ShadowMaster]

Panther- Tri State- TranStewart-

You will have a lot less competition in a tractor trailer.

One another note if you look at the Newbies FAQ forum we have discussed contracts numerous times so you might find something there we are missing here. Good luck.

I have been approved for Panther...TriState told me I needed a co-driver before they would do anything with my app. I will try the other one you mentioned. As far as TT is concerned- I just want to try something a little diffrent. I attempted to use the search- but I figured I would ask anyways.

 

[ShadowMaster]

Ok. Thanks.

 

[arkjarhead]

Just a suggestion. I am assuming you are wanting to run solo? If so be prepared for 2 things. A cut in pay, and a lot of time on your hands away from home. I was under the illusion that driving a straight truck was just like driving a tractor trailer only smaller loads. Boy, was I wrong. Just do some research and make sure you know what you are getting into.

 

[ATeam]

With the fixed rate that the fed pays the contractor, Isn't it MUCH harder to come out on top when doing the 60/40 all you have to do is move to far off of the route or run your generator to long and I would think that your back to even.

That's not a knock on the Fed Phil, it's just one of those it is what it is. I'm not saying that you can't come out on top doing a 60/40 with them, but I'm positive that I can with the two headed Cat

jaminjim,

Sorry I keep missing your point, but can you explain exactly what you mean by "come out on top?"

I have no need to proclaim one carrier's fuel surcharge better than any other's, or worse. But, for the newbies reading EO, I am concerned to see the surcharges fairly and accurately explained.

 

[arkjarhead]

I think I understand what he is trying to say Phil. At Panther the fsc is on a per customer basis. So if a customer is paying a fsc of .50 (round number for argument sake) and you are getting 10 mpg you are coming out money ahead as long as fuel is less than 5 dollars a gallon.

I don't know how the fsc is set up at FDCC. Isn't it on a sliding scale based on national average cost of fuel divided by average mpg for your truck class, i.e. C-unit, D-Unit? If so, I think what Jaminjim is getting at is the only way to come out money ahead where all you fuel is paid for with fsc money and then a little extra in your pocket is to have a better mpg than the fleet average mpg?

Am I getting close Jim?