Conway

LDB · Jan 22, 2006

>My husband and I drive as a van team for Conway-Now. The
>purpose of our message is purely factual. Fourth quarter
>2005 paid miles for us at 80 cents per mile were 18,284.
>Total fuel surcharge paid was $2,955.94. Average fuel
>surcharge for quarter was 16 cents per mile. Under the new
>rules, with the National Diesel Fuel Index being $2.45 this
>week, our fuel surcharge this week will be 9 cents per mile
>across the board.

To be completely fair we have to acknowledge the difference in diesel prices during 4Q '05 and now. Diesel prices were at an all time high during October '05 because of the hurricanes. The national average was as high as $3.157 during that time. I presume Con-Way's matrix is a moving matrix adjusted on a weekly basis and trust Ms. Blaney will confirm that or explain how it's different.

Having monitored fsc with other o/o's, admittedly at another carrier, I'd say a 16cpm fsc would be the prime runs all the time as far as fsc is concerned at least if running for another carrier. That average would drop somewhat under the new system but it would not drop by almost half as this post indicates because of the significantly lower diesel prices now compared to the quarter mentioned.

I'm also not going to leave Con-Way out of this discussion. Their matrix is excellent as far as the 13mpg for vans is concerned however I find their 10mpg for straights much less o/o friendly. It would be rare for a van to do less than 13mpg but it would also be rare for a straight to do 10mpg. If Con-Way wants to be completely fair to their o/o's, and I believe they do, their straight truck matrix needs to be calculated at 8 or 8.5mpg at most as that's far more real world like their van number than 10 is.

Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator 1+ Years of Service
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Tennesseahawk · Jan 22, 2006

Doing a little math, it seems that vans are still coming away with a decent break with the new fsc formula.

.09x13=1.17
Current fuel prices being 2.45, you're paying 1.28 for fuel. You have it even better if you're running a gas van. More like 1.10.

I'd like to know what it is for straight trucks. Personally, I don't like the idea of a gap between solo and teams. But, I guess companies have to do what they can to compete.

Back to the fsc. I don't know many vans that are getting 13mpg. But it seems that you're getting exactly what the fsc was in place to do... knock your fuel cost down to $1.25/gal. So, what's all the complaining about? Were you counting on the customer paying ALL your fuel? If you want a pay raise, get a group of friends together and go knock on the president's door. If you knew what they were charging the customer for a van load, you'd be knockin.

OntarioVanMan · Jan 22, 2006

>Doing a little math, it seems that vans are still coming
>away with a decent break with the new fsc formula.
>
>.09x13=1.17
>Current fuel prices being 2.45, you're paying 1.28 for fuel.
>You have it even better if you're running a gas van. More
>like 1.10.
>
>I'd like to know what it is for straight trucks. Personally,
>I don't like the idea of a gap between solo and teams. But,
>I guess companies have to do what they can to compete.
>
>Back to the fsc. I don't know many vans that are getting
>13mpg. But it seems that you're getting exactly what the fsc
>was in place to do... knock your fuel cost down to
>$1.25/gal. So, what's all the complaining about? Were you
>counting on the customer paying ALL your fuel? If you want a
>pay raise, get a group of friends together and go knock on
>the president's door. If you knew what they were charging
>the customer for a van load, you'd be knockin.

Exactly my point!! 13mpg is a very fair compensation for a van. theres many a van that get in excess of the 13 marker and if it don't you'd better get one that does. Its YOUR business its up to YOU to keep up with technology. Don't get behind like Ford or GM and then scream poverty and look for sympathy.
Ya know where sympathy is in the dictionary? between sphillis and s##t....

tallcal101 · Jan 22, 2006

Lori,
I have been in the Van Line business for 25 yeras as a corporate sales person.I have been through the FSC issue many times.Which clents should pay,who should not and how much should they pay.
I now own a fleet of W/G reefer trucks,and have watched with great interest how this industry is dealing with the question.
The healthy Van Lines decided many years ago that if the big customers would not pay to help the drivers,and mostly to keep the good drivers,they did not want the business.Let another van line go broke.Good drivers in the VLine business are the same as good drivers in this industry,hard to find.Go ahead and drive them away by giving the customrs everything they want in these tough times, and watch what happens.Learn from history Lori,or pay the price.

joebob1_30132 · Jan 22, 2006

Here! Here!Dave NEW to this forum,After reading you posts, I realize you usually take a measured, leveled approach.. (Not Always agreed) much appreciated, In light of my sometimes reactionary one.Youve also been good about replying to my E-mail. no rear kiss'n just try to call em like I see em. The good companies will proudly make their case, Cause the o/os are at an advantage with the internet. Information trvels fast, and so do I.

joebob1_30132 · Jan 22, 2006

Thanks for your imput ... The good honest companies will will not be shy or ambiguous(?) about their Programs, besides word gets out fast these days.. just look at the reaction to this.. Your having to clean up this (clarify) this topic T ocut through the misunderstanding, and sometimes misinformation. Cudos To you I think that more than anything that last post was your best advertisment for recruiting. Anyone one can sell the glitz. You seemed to have been honest in your explanation..That makes you tops in my book. THANKS CONWAY..

NoProblem · Jan 22, 2006

Doing a little math, it seems that vans are still coming away with a decent break with the new fsc formula.

.09x13=1.17
Current fuel prices being 2.45, you're paying 1.28 for fuel. You have it even better if you're running a gas van. More like 1.10.

I'd like to know what it is for straight trucks. Personally, I don't like the idea of a gap between solo and teams. But, I guess companies have to do what they can to compete.

Back to the fsc. I don't know many vans that are getting 13mpg. But it seems that you're getting exactly what the fsc was in place to do... knock your fuel cost down to $1.25/gal. So, what's all the complaining about? Were you counting on the customer paying ALL your fuel? If you want a pay raise, get a group of friends together and go knock on the president's door. If you knew what they were charging the customer for a van load, you'd be knockin.[/i]

Even our old 1999 van gets 18 mpgs. And our Sprinters get well over 13 mpgs - - - closer to 23 mpgs!!

Well said T-hawk. Kudos to you!

Reading through the entire thread, I want to say...........

What is all the discussion about?......it is about those O/Os who are, in reality, "not knowing".

Sorry if I hurt those O/O's ego's. What gives you the right to establish FSC? If you want something "fair" - go negotiate the FSC your own self!........While your at it, how about cutting Conway in for a cool 20% extra? - - -Not on your agenda? - - well, up a rope with ya!

This issue is similar to the way O/Os are "not knowing" where the heck to dead head for the next load.

O/Os have absolutely no way of knowing what the FSC is, (or the actual rate per mile for that matter) - no matter what you all think - because FSC is most often a customer established rate. Certainly, there are some customers who have a negotiated FSC, but between the two, if I were an O/O, I'd be happy to get any FSC.

I can guarantee that if it's NLMI, Conway has nothng to say about it.

Conway is only doing now, the same thing that we have been doing for the last four years - because some customer pay nothing - regardless of "fairness".

Has anyone considered that Conway will most likely lose money - and customers - if they try to cover FCS for those who pay nothing - or - next to nothing.

Do you all really believe that Conway can "demand" an inflated FSC - or even a fair FSC for each and every one of their loads?
In case you do, you are 100% wrong because "Joe's Expedite" will take that load at a cut throat rate - without any FSC! - - - - what are you going to do about it? I'll tell you. Wine is about all you will do.

O/Os need to realize that, especially these days, any FSC is a gift. Accept it and be happy. Otherwise, take the alternative and roll for a loss.

It is a matter of survival folks! Especially at this time - the worst time of year for nearly everyone.

Cut Conway some slack and TRY to look at this particular issue from their point of view.

Consider that no matter what company you are signed on with, you will either roll and (hopefully) make money - or you will dead head all over hell's half acre trying to position yourself, and you'll end up waiting at the house for the next load.

Well, I am telling you right here and now.............. many customers that can keep you rolling - WILL PAY next to zero - or - ZERO FSC. Take it or leave it - it is your choice. Who ever said life - or business - was fair?

There are too many "D" O/O's, especially at this time of year, who end up rolling for well under "at cost" - just to roll.

Look for their trucks as being up for sale before too long.

Do you want to roll? - or would you rather sit and wait for the $$$ at end of the FSC rainbow - something designed to do nothing more than help cover fuel expences?

Miles = money these days for the overwhelming majority, there are no high paying loads these days - fight it and lose. Maybe later - but not now.

Personally, I applaud Conway, and I look for other biggies to do something similar with their FSC.

FSC is designed to help cover the fluctuating cost of fuel.

FSC is NOT in place to pay +100% of your fuel, or, to pay you any premium for fuel or your services.

Make your money on a "per mile basis", any FSC will then help cover some of the cost of fuel.

Use FSC ONLY to HELP cover the fluctuating price of fuel. If you cannot roll proftably enough without a high FSC, you should have never bought a truck.

If your profitability is dependant upon a high FSC vs a fair FSC, it is your miscalculation, not Conway's.

Right now, this biz is is dog-eat dog - adapt, whine or sink.

Just my oh-so-humble opinion.

Steve

davekc · Jan 22, 2006

It appears that this issue is for van and straight trucks. Nothing at all mentioned about tractor trailers?
It would be something to look at.

Davekc
owner
21 years
PantherII
EO moderator