Flat mileage fee vs % of Compensation
- Thread starter JSudlow
- Start date
With FSC and FedEx last I knew it was FSC was paid on ALL authorized miles loaded or empty.
That to me is the huge difference between get paid 100% of FSC when a customer pays the FSC and getting paid FSC on all miles whether or not the customer pays.
Leo is nearly accurate but the difference the gas vans get FSC on the gas price not the diesel price.
That to me is the huge difference between get paid 100% of FSC when a customer pays the FSC and getting paid FSC on all miles whether or not the customer pays.
Leo is nearly accurate but the difference the gas vans get FSC on the gas price not the diesel price.
I have to apologize for giving incorrect information. The FECC brochure states: "Fuel Surcharge paid for all authorized miles. We estimate that your out-of-pocket expense will be approximately $1.25 per gallon based on the FECC fuel surcharge and the following assumption: Cargo van 15 miles per gallon".
I view the FSC as a matter of ethics, more than profit. If Customer A pays a FS, then Customers B-Z should, as well. I don't like the concept of "selling" by discounting, believing it unfair to those customers who don't get discounted rates, because the service we provide is the same for all. Would the customers who want discount rates be willing to accept discount service?
I also don't like the practice of pooling the FS paid [by those who pay it] among all loads, to provide an equal amount for each. It's a complicated accounting formula, and I don't trust that one little bit. I don't know who said "In complexity, much can be hidden", but I bet it was an accountant, lol.
This is merely my opinion.
I also don't like the practice of pooling the FS paid [by those who pay it] among all loads, to provide an equal amount for each. It's a complicated accounting formula, and I don't trust that one little bit. I don't know who said "In complexity, much can be hidden", but I bet it was an accountant, lol.
This is merely my opinion.
I'm amazed Panther hasn't gone this route. What a great way to skim extra profits off the fsc pool. I will have to bring this to their attention next time I'm in Pantherville.
I don't know who said "There is no profit in ethics", but I bet it was an accountant.
Reminds me of when I first started hauling NLM loads. I took a 22% hit off my regular rate to haul their freight and put up with their crap, like no early pick-ups, early deliveries, etc. NLM demanded more and paid less. If you have the clout you can call the shots.
Nevermind....my mind going whacko again....lOL
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Cheri I did not say it was ethical and my opinion of this practice is really ugly and I have been very vocal about it. Why a company lets a sales person take money away from a driver that has no say in the matter sends me through the roof. I think it slows the practice down a lot when the company also has to feel the pain of giving away tolls and FSC. Money talks and when a company feels the pain all of a sudden some issues come to light and a practice is stopped.
The "pooling" of the FSC is idea that has outlived its usefulness really....it came from a time when the FSC became a reality...when way back then contracts didn't have any reference to an FSC and shippers refused to pay any and some did....so some bright person said lets the pool the money around and it will look like them ones that don't pay actually look like they do pay...and the shipper appears to "look good" on the surface...
I am all for getting rid of the "structured" or pooling FSC...
and I do support splitting the gas from the diesel vans....
Maybe a gas powered straight truck would work better?.....LOL
or better yet...forget the FSC altogether and just have an "All in rate" or "all inclusive"
I am all for getting rid of the "structured" or pooling FSC...
and I do support splitting the gas from the diesel vans....
Maybe a gas powered straight truck would work better?.....LOL
or better yet...forget the FSC altogether and just have an "All in rate" or "all inclusive"
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Why separate gas vs diesel vans? In that case why not also have at least two diesel van categories since there can be a wide variation in mpg in brands/models of diesel vans? Then there needs to be two tiers for straights and tractors as well. Not because there is a fuel price difference but a mpg difference. Gasoline vans getting diesel fsc is no different than the vans or straights or tractors that consistently get far better than 15 or 9 or 6 mpg. Maybe it should go another step farther and fsc tie in with route chosen since some runs have more than one possible route that can make a difference in mpg. We probably should also use QC and other means to monitor speed during a trip and factor that into the fsc as well. And probably a few more things too. No, maybe the current system of 3 categories isn't broken at all and should be left alone as far as categories are concerned. Changing it is a dumb idea.
The rational behind fuel surcharges was to offset the volatile price swings of fuel. Carriers didn't want to constantly change their published tariffs every time some oily sheikh in the Mid East farted and the price of crude increased. So they invented the fsc. Shippers understood that and the big boys still got their preferred discounts on the carriers published tariffs. Eventually the big boys also wanted a discount on the fsc and they got it.
By having a fuel surcharge pool, carriers can make some extra money and get loads that pay a low fsc covered. I don't agree with this practice but that's reality at most large expedite carriers.
By having a fuel surcharge pool, carriers can make some extra money and get loads that pay a low fsc covered. I don't agree with this practice but that's reality at most large expedite carriers.
Maybe I misunderstood what you wrote - if so, sorry, I thought you were defending the practice.
I totally understand that feeling of "ugly", remembering the first time I heard about some customers being given 2 free hours of load/unload time. [I was in a cargo van!] I didn't think that was defensible in any way, shape or form, and I still don't. Now, my time is limited and monitored by federal law, and the customers who waste it for their own convenience need to be reminded of that. Detention puts drivers between the rock of HOS laws and the hard place of customer demands, and it's totally unjustifiable.
JSudlow I think you brought up a issue that spurred great discussion! Good Job
Just like detention time or giving time away, the fuel surcharge amounts and how they are calculated is one of the largest places carriers skim from drivers. They know who they are. If one looked at the actual rate sheets, it is amazing how many carriers just help themselves.