expedite freight cost

[dancorn]

Recently was handed two copies of the BOL which included on a separate page a bill to the customer. I looked at it and was surprised by the amount for freight. I was just shy of 2k and my total share amounted to 49%. I had always assumed that the companies marked up their charges by 20-30%. This was a 105% markup.

Anyone know if this is the norm?

P.S. There were two freight companies involved, the original booking company plus my company that contracted me for the delivery.

 

[moose]

I don't care !
unless we get paid %tag ,it's none of my business .

 

[xiggi]

I think you will find both what you experienced and a 30% markup is common. I am not defending carriers but their costs involve much more than just paying mileage. They have deadhead pay, office overhead, taxes, orientations, empty moves, 30 - 90 day delay on being paid that they must pay drivers ahead of time on and many more things. A large company probably has 3 -4 office people involved in every invoice by the time it is paid not counting the driver. A certain percentage will never be paid and the company still has the normal costs involved. For a large company I think surviving on a 20 -30% markup would be very difficult.

 

[LDB]

I imagine both are accurate depending on the customer. While sitting in dispatch I saw a load booked that had I been near the shipper I'd have taken. It would have paid about $2900 to the truck for TN to AZ. The customer was paying about $6200. I wouldn't have known if I hadn't been sitting with the CSR as it was booked and it didn't matter to me what the customer paid since 1. we were paid on flat rate and 2. I wasn't running the load. I've also seen loads where it was a very sucky load and I was offered $650 up front on a load the customer was paying $692 to move.

 

[greg334]

Leo,
The issue for many of us who did a lot of Air Expedite work was not that they charged the "customer" the rate and the truck got it but the charged were internal to reduce the revenue share to the truck.

They would do an Interdivsional charge from CC to say Express which then Express is the customer, but the actual customer. When the CC truck would ask for a copy of the charges, the actual customer wasn't there and neither were the actual charges.

So for example MGM Casinos needed some equipement moved from their Atlantic City location to their Las Vegas warehouse. They called FedEx up and told them that they will have the equipement dropped off at Newark Airport. FedEx will provide the ride the rest of the way. The charge for all of it is $7800. CC will pickup the cargo at the FedEx LV terminal and take it to the warehouse - a 30 mile trip. The truck ends up with $300 for the work but not the $4386 that the contract says they get because FedEx actually shifts the customer from being MGM Casinos to FedEx express.

I don't think it is fair but on the other hand contracts seem to be ignored with a lot of companies. I used FedEx as an example by the was, others do the same thing.

 

[davekc]

That is why I like a company that can readily provide a BOL and why we book some of our own freight.
Many companies (they know who they are) are total game players in this regard.
It is never what the load is worth, it is what it actually pays.

 

[LDB]

My example wasn't regarding Fedex. That said, if whatever is going from the LV airport to a casino 30 miles away and the bill is $7800 from Newark to that casino I wouldn't expect 59% of $7800 as far more of that would go for the ride from Newark to LV and $300 for 30 miles would be a fair pay in my estimation unless lots of extras were needed in which case I might want $400-500 (speaking in truck rates not van rates).

 

[greg334]

I understand that but the issue is discloser and honesty.

If the dispatcher says the gross is X, then they should be honest enough to say it is an interdivsional move and the gross is a share of the entire bill.

BUT regardless if the entire bill is charged to the customer - the contract is clear that the percentage is based on what the customer is charged.

 

[davekc]

Not on the 30 miles or that small of a portion, however I would expect 59 percent of the money for completing it in its entirely if that is what your operating contract indicates.
Some carriers may run that through a in house third party to readjust the necessary contractual obligation to their lessee.
And yes you can guess, it won't be in your favor.

 

[TheOGExpediterGuy]

I know that Load-1 pays 67% of the rate plus fuel surcharge an after 90 days I think your are eligible to get 70% if you agree to upgrade your Decals (more of Load-1 stampings on the van) and as long as Load-1 is satisfied with your service...

 

[Jefferson3000]

I understand that but the issue is discloser and honesty.

If the dispatcher says the gross is X, then they should be honest enough to say it is an inter-divisional move and the gross is a share of the entire bill.

BUT regardless if the entire bill is charged to the customer - the contract is clear that the percentage is based on what the customer is charged.

Greg,

It wasn't just a inter-divisional move, you did a "brokered" load. Fedex Express, MC066562-B, to the carrier, Fedex Custom Critical, MC141898. While you did see a customer invoice from Fedex Express, the was no doubt an invoice that Custom Critical sent to Memphis, of which you got a percentage.

 

[LDB]

I guess I'm missing something because it sounds like you are expecting $4900 or whatever it was for a 30 mile run from LV airport to a casino. Then again, it is the middle of the night so maybe I'll have to look at it again after a few hours sleep.

 

[nightcreacher]

Greg, I'm with Leo,looks like your expecting your percentage for the whole load,not the 30 miles it was going.If that would haver been a tractor move,for 30 miles,would have paid $510 less any discount,plus FSC.NIOw if a truck would have done the whole move from NJ to NV,thats a light in a different story

 

[greg334]

NO your are missing something ... and I will spell it out for you.

Even though the truck does not "deserve" the full amount, a lack of disclosure is the real issue. You should have access to the invoice for that work you do, not an interdivisional invoice but the actual bill to the customer, broker or third party outside the company. The issue comes into play when there is a refusal or no up front disclosure, it really doesn't matter what goes tot he truck.

when FedEx does an interdivisional invoice, they are treating it as a third party billable which it is not and they can set their own price. This happens in other companies too and it is abused a lot.

If I remember right, your contract does not say we pay you what ever we feel like it but it says there is a percentage of the gross that is billed to the customer. Furthermore the FMCSA requires a disclosure to you, the contractor, of the invoice to the customer.

To simplify it, the carrier isn't honest and you have to watch them.

 

[OntarioVanMan]

NO your are missing something ... and I will spell it out for you.

Even though the truck does not "deserve" the full amount, a lack of disclosure is the real issue. You should have access to the invoice for that work you do, not an interdivisional invoice but the actual bill to the customer, broker or third party outside the company. The issue comes into play when there is a refusal or no up front disclosure, it really doesn't matter what goes tot he truck.

when FedEx does an interdivisional invoice, they are treating it as a third party billable which it is not and they can set their own price. This happens in other companies too and it is abused a lot.

If I remember right, your contract does not say we pay you what ever we feel like it but it says there is a percentage of the gross that is billed to the customer. Furthermore the FMCSA requires a disclosure to you, the contractor, of the invoice to the customer.

To simplify it, the carrier isn't honest and you have to watch them.

Greg..I get it....just whack Leo one more time he may see the big picture....

The contract should be more specific..it is pretty vague the way it is...% of invoice.....which invoice? and then they break a load out of one load and create another....

example...say a Fedex Freight drops a 6 stopper in say Atlanta..and Feds sell them 6 drops to CC...now the Feds make up their own invoice for internal reasons and you are paid on that invoice...NOT the original.

 

[nightcreacher]

Greg,one time a couple years ago I was involved in a air move with fed ex express.My part was a short move,the plane came cross country.When the offer came across it was for the 60% of all the charges.I was in shock as my part was just 200 miles.I did get a phone call with appology that I was only to get the 200 miles I was going.My 200 miles was better than a normal 200 miles,but not near what it would have been originally.I know on percentage your suppose tpo get a percentage of what the customer is billed,but in my case,the customer was actually billed by FedEx Express,They inturned put it on a CC truck for delivery.

 

[moose]

The contract should be more specific..it is pretty vague the way it is...% of invoice.....which invoice? and then they break a load out of one load and create another....
example...say a Fedex Freight drops a 6 stopper in say Atlanta..and Feds sell them 6 drops to CC...now the Feds make up their own invoice for internal reasons and you are paid on that invoice...NOT the original.

and what will happened if you change that FX name to ...O'h i don't know ...other carrier that pays %'g ...like ...Mmmm...Loadone...

(O'h boy ,i just opened a Pandora box,gonna have all the Avatars after me soon )

 

[OntarioVanMan]

and what will happened if you change that FX name to ...O'h i don't know ...other carrier that pays %'g ...like ...Mmmm...Loadone...

(O'h boy ,i just opened a Pandora box,gonna have all the Avatars after me soon )

Moose you are safe with me...

doesn't matter what the name says on the invoice...

most don't really read their contract after the pay line anyhow.....

 

[Jefferson3000]

In this case, Fedex Express is Custom Critical's customer, and yet all you saw is the bill to Fedex Express's customer? Doesn't sound like a breach of contract to me, unless Custom Critical was unwilling to show you what they charged Express, or even Fedex Freight for that matter. Just because you saw the total invoice by accident doesn't make it a lack of disclosure or even dishonest. Even though all companies have "Fedex" in the name, they are incorporated separately, in different states, and operate under different MC numbers. You ran a brokered load.

 

[davekc]

In this case, Fedex Express is Custom Critical's customer, and yet all you saw is the bill to Fedex Express's customer? Doesn't sound like a breach of contract to me, unless Custom Critical was unwilling to show you what they charged Express, or even Fedex Freight for that matter. Just because you saw the total invoice by accident doesn't make it a lack of disclosure or even dishonest. Even though all companies have "Fedex" in the name, they are incorporated separately, in different states, and operate under different MC numbers. You ran a brokered load.

That is how I would see it. A good percentage of freight is moved in a thrid party manner.