FSC What happened?

[redytrk]

The change in FSC was intended to spread it all around so that customers who had contracts that would not pay could still get trucks to pick up their stuff.

Well brother in my view a lot more happened than that. So I went back to my archives to do a little research. When I divide my fuel cost into revenue this is what I come up with.

2001......16.3%
2002......19.9%
2003......13.0%
2004......17.2%
2005......NA
2006......27.1%
2007......27.9%
2008......37.2% (to date)

In 2003 we upgraded to a unit that delivers 20% better fuel mileage or the figures would be much worse.

 

[TeamCaffee]

Your figures prove why we are doing everything in our power to reduce our fuel costs. Look around at how everyone is tightening their belts including our carrier to get through these lean times. Can you imagine without the help we receive from FCC what it would cost to dead head from Seattle to Reno or other out of the way places to the layover?
Look at the good side everyone is struggling and FCC is constantly looking for new customers and how to keep the customers we have satisfied. I believe they are doing a good job, the FSC is right on the money with the national average. We are running less miles and making more money then we have in the past.
We will continue to do our part and run smart and cut our expenses down as much as we can and be thankful we get a FSC and not be like our kids who are still driving to work every day and not being compensated for how much their fuel bill is each week. They are working for the same money but paying a lot higher prices at the fuel pumps.
We will make it through these lean times and do our part to keep our customers happy with how our truck looks, how we look and our attitude towards our business.

 

[redytrk]

The point is if FSC was working the way it is supposed to.... Fuel cost would still be only 16.3% of revenue.

 

[nightcreacher]

dont know how you are figuring,my fuel costs are as good as or in some cases better than when the fuel was 1.20 per gallon,it all has to do with your fuel mileage. the original way fecc was paying for fuel surcharge,was in most cases paying for all the fuel,sure that was nice,but thats not what fsc is suppose to do.

 

[nobb4u]

If you ran 100,000 miles and made $100,000 and your fuel cost was .169 of your revenue in 2001, then in 2002 you ran 120,000 miles and made $100,000 even if the fuel was the same price your fuel cost would be up because you ran 20% more miles.

Example:

100,000 miles @ 8MPG =12,500 gallons of fuel @ 1.00 per gallon = $12,500 = .125%
120,000 miles @ 8MPG =15,000 gallons of fuel @ 1.00 per gallon = $15,000 = .15%

So you see your formula is flawed by only dividing your revenue by your fuel cost. There is more than one factor involved.

 

[Dreamer]

(Posted at request of Linda... picture upload issues)


Let’s do some more fun stuff and include FSC in on the figures and show how improving your MPG changes your CPM and your percentage of revenue for fuel can be lowered dramatically. The FSC and the average diesel price is what FedEx Custom Critical is using for this week for a D unit not west coast figures or reefer.