DieselDriver
Seasoned Expediter
With the diesel fuel prices going up and soon to be exceeding $4.00 per gallon, how long can you hang on before you will need an increase in freight rates?
Freight rates and fuel prices!
- Thread starter DieselDriver
- Start date
Isn't that what the FSC is for
The fuel surcharge covers only part of the costs. Rates, not included in the FSC, need to increase. They have been static for a long time, maybe even gone down a little. Many tend to forget that as fuel cost rise so do all other costs. Like repairs etc. Everything is affected by the cost of fuel.
I posted about this before....LTL, Truckload, Rail, Air, Sea...rates have all gone up....
Expedite carriers seem to have no balls to increase rates...and if they are increasing them, they are not passing it on to us....MOST don't give a rats azz about its contractors
As long as your FSC keeps up to the cost of fuel you should be ok....
Expedite carriers seem to have no balls to increase rates...and if they are increasing them, they are not passing it on to us....MOST don't give a rats azz about its contractors
As long as your FSC keeps up to the cost of fuel you should be ok....
Doggie Daddy
Veteran Expediter
How often do you adjust your rate? to allow for inflation/CPM
guido4475
Not a Member
Maybe if ALL the carriers would give 100% of the fuel surcharge to the owner-operator.I've worked for a few that keep part of it.I mean, what business do they have to take money from us that is intended to go to us in the first place? They don't pay for the fuel, WE do. Another fact supporting my thinking that too many carriers make money off of the driver, instead of the load itself.
Doggie Daddy
Veteran Expediter
Doggie Daddy
Veteran Expediter
Also we don't do CPM, it's DPM.
Sent from my DROID BIONIC using EO Forums
Sent from my DROID BIONIC using EO Forums
Slap!!!.....LOL....smartbutt...
But I get it....your CPM on any load will be different depending on your location, final destination and so forth....so you need to cover your CPM on a load by load basis....
CPM, DPM, ROI....= SOL...
purgoose10
Veteran Expediter
I posted on this very subject several months ago. Several carriers one being Bridge Terminal Transport kept part of the operators FSC money. They got sued and lost having to reimburse millions to their operators. They are not supposed to keep any FSC of the operators. Some carriers negotiate FSC with shippers and some shippers pay what they decide to pay and the trucking companies bow to them because of the amount of freight they move. All the FSC is designed to do is to keep the cost of fuel to the owner operator at $1.25 a gallon. Thats what the price of fuel was when FSC was first used. The FSC usually runs a week behind with most carriers because they don't update daily. All book keeping. It's difficult for a large carrier with hundreds of trucks to do it daily and pass it on. Actually its hard for any size to do it.
purgoose10
Veteran Expediter
Slap!!!.....LOL....smartbutt...
But I get it....your CPM on any load will be different depending on your location, final destination and so forth....so you need to cover your CPM on a load by load basis....
CPM, DPM, ROI....= SOL...
Hmmmmmmm! Are we burning bridges early on a Monday???? LOL!
guido4475
Not a Member
I think we have to overlook his rowdiness this week, as he is getting bored, going stir crazy, and is looking for amusement to keep his mind off of things..lol.
purgoose10
Veteran Expediter
That's what happens when you have less driving more money kind of thingee!!## To much time on his hands. LOL.
He has a wandering mind anyways, its an age thing !!!!!!!!!!!!! LOL
guido4475
Not a Member
Or Sprinteritous....
Here at Undercutters Express, Inc "we will beat anyones advertised price by 10 percent our your shipment is hauled for free!" Now considering we are competing with Load One I think we would be able to cut the rate by ten percent and still make a decent profitoff of that. Now if we were to do that to say another expedited carriers quoted rate we may very well be moving the load for free! lol.
The rates have never kept pace with the rise in expenses. But that is the nature of drivers. We will sit around in a parking lot and whine about the rates and then we willbe the first one answer the phone and take a load for cheap. Most of us drivers just want to make money. Sometimes we forget that we are the ones with the power because we own the truck.
Maybe we need to demand higher rates. I remember when Panther stopped moving Ford loads because they wanted a higher fuel surcharge and NLM said they didn't need Panther. After a few days Ford gave in to the demands and now they pay a very small fuel surcharge. I guess we need our companies to stand up and fight for us! But will they?
The rates have never kept pace with the rise in expenses. But that is the nature of drivers. We will sit around in a parking lot and whine about the rates and then we willbe the first one answer the phone and take a load for cheap. Most of us drivers just want to make money. Sometimes we forget that we are the ones with the power because we own the truck.
Maybe we need to demand higher rates. I remember when Panther stopped moving Ford loads because they wanted a higher fuel surcharge and NLM said they didn't need Panther. After a few days Ford gave in to the demands and now they pay a very small fuel surcharge. I guess we need our companies to stand up and fight for us! But will they?
I don't think things will ever change in respect to CV's....what we need is at best a Minimum a 6 month REAL slowdown and get rid of the driftwood...
