FSC what is the deal
- Thread starter karp01
- Start date
You should expect what you contracted for.
The story of the flat rate FSC goes back about 5 years or so...
at that time carriers were locked into contracts as the story goes.....and then they had some customers NOT locked in.....so hence came the balancing act and all seemed pretty well with the flat rate because it pretty much evened out back then....but time has past and these contract have for the most part been renegotiated .....Now the flat rate FSC and its fancy formula are behind the times....
Since being with a carrier that pays % and 100 % of FSC...I've NEVER had an FSC....LESS then what FDCC or E-1 is at flat rate!! Even NLM loads paid a better FSC then their flat rate...
at that time carriers were locked into contracts as the story goes.....and then they had some customers NOT locked in.....so hence came the balancing act and all seemed pretty well with the flat rate because it pretty much evened out back then....but time has past and these contract have for the most part been renegotiated .....Now the flat rate FSC and its fancy formula are behind the times....
Since being with a carrier that pays % and 100 % of FSC...I've NEVER had an FSC....LESS then what FDCC or E-1 is at flat rate!! Even NLM loads paid a better FSC then their flat rate...
One more thing to factor in is what miles are you paid a fsc? Yes, there are higher fsc rates than what I get. My fsc is based on $1.25 fuel at 15mpg. The rate adjusts every Tuesday based on national average. Right now that's 19.33cpm for a van. There are definitely van guys getting more than that, on loaded miles. They don't get any fsc on deadhead to the pickup though. They also don't get any fsc on POD to layover miles.
If I am sitting in West Podunk and deadhead 117 mi. to pickup I get 117 mi. of fsc. When I deliver I'm given 2 options for layover. If I choose one of those two options I am paid fsc for the 131 mi. to East Nowhere. Everyone (presumably) gets fsc on the 539 loaded miles of the job but most get zero fsc for the 248 miles before/after the load. Once I pass 50 miles I also get deadhead pay on the before/after miles as well. Most others also get deadhead after 50 or 100 miles depending on the company.
In my example I'd get $152.13 total fsc on that job. To get the same amount of fsc it would have to pay 28.23cpm on the loaded miles. Obviously that number varies from load to load but my fsc isn't so bad when all dispatched miles are figured in.
Rates and policies vary company to company. Don't automatically rule out fixed rate though without knowing just how it works.
If I am sitting in West Podunk and deadhead 117 mi. to pickup I get 117 mi. of fsc. When I deliver I'm given 2 options for layover. If I choose one of those two options I am paid fsc for the 131 mi. to East Nowhere. Everyone (presumably) gets fsc on the 539 loaded miles of the job but most get zero fsc for the 248 miles before/after the load. Once I pass 50 miles I also get deadhead pay on the before/after miles as well. Most others also get deadhead after 50 or 100 miles depending on the company.
In my example I'd get $152.13 total fsc on that job. To get the same amount of fsc it would have to pay 28.23cpm on the loaded miles. Obviously that number varies from load to load but my fsc isn't so bad when all dispatched miles are figured in.
Rates and policies vary company to company. Don't automatically rule out fixed rate though without knowing just how it works.
I am sure that is part of why Panther made the changes they did to stay ahead of the curve. Now they are paying the total fuel bill on any move to get a load without giving up the first 50, 100 miles or whatever. Anything of course could be negotiated above that, but this new program is now the standard fare. Empty moves pay the same from point of delivery but the impact is negligible as we seldom ever use them.
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ebsprintin
Veteran Expediter
Here is another trick to look for in your contract. Does it say "100% fsc", or "100% of fsc program"? Now try to find that "program". That's a game some of us get to play.
eb
eb
With your "program" you get 100 percent of whatever they decide to give you. Anything that is a flat rate pretty much falls into that "program".
chefdennis
Veteran Expediter
FSC was a Mystery at my previous carrier...but as OVM said, since moving to Load 1 and getting 100% of the FSCm its not an issue, just like not having to worry about getting jerked around on what a load pays...you just don't have to worry or even ask...
As for FSC on "empty moves" as long as the company ask you to move, they don't pay a "FSC"...they pay for whatever the cost of the fuel used to move cost the driver...at least in a CV/Spinter the ST and TT may have their own program or be on the same us "little guys/gals) are....
So you can see, it all depends on the carrier..
As for FSC on "empty moves" as long as the company ask you to move, they don't pay a "FSC"...they pay for whatever the cost of the fuel used to move cost the driver...at least in a CV/Spinter the ST and TT may have their own program or be on the same us "little guys/gals) are....
So you can see, it all depends on the carrier..
Thanks everyone for the responses.
Sounds to me and from all the posts I have read that the single most important thing in this business is to align myself with fair and reputable carriers.
I was in the construction industry and that can be very difficult at times.
The more advise the better.Keep it coming and thanks again
Pms are welcome if desired
Thanks again
Larry
Sounds to me and from all the posts I have read that the single most important thing in this business is to align myself with fair and reputable carriers.
I was in the construction industry and that can be very difficult at times.
The more advise the better.Keep it coming and thanks again
Pms are welcome if desired
Thanks again
Larry
I am in the process of deciding that as we speak
In all likely hood I will be operating as an independent then persueing my own authority.
If the right situation arises I am open to lease on as well
The more research I do the more I feel like I need to learn the ropes more.
Larry
In all likely hood I will be operating as an independent then persueing my own authority.
If the right situation arises I am open to lease on as well
The more research I do the more I feel like I need to learn the ropes more.
Larry
Well, operating as an independent and having your own authority is the same thing as far as I know.
I'm assuming you mean operating as lease o/o, then looking at your own authority?
There is a lot that would go into that decision. Mainly being how many GOOD contacts do you have for outbound freight. The bad part is knowing what good is and what bad is, if you've never done this type of work before.
Don't think for a minute that there isn't more than a few people and some larger companies out here that are more than happy to send a new entrant of this business home with his tail between his legs and bankruptcy papers in his mailbox.
Getting your own authority and running under your own authority is not that big of a deal. Getting enough loads to stay busy, keeping all the customers happy, developing relationships with partner carriers so that you can get back to your primary customers, billing, collections, regulatory maintenence, etc, etc...that's where the problems arise.
I'm assuming you mean operating as lease o/o, then looking at your own authority?
There is a lot that would go into that decision. Mainly being how many GOOD contacts do you have for outbound freight. The bad part is knowing what good is and what bad is, if you've never done this type of work before.
Don't think for a minute that there isn't more than a few people and some larger companies out here that are more than happy to send a new entrant of this business home with his tail between his legs and bankruptcy papers in his mailbox.
Getting your own authority and running under your own authority is not that big of a deal. Getting enough loads to stay busy, keeping all the customers happy, developing relationships with partner carriers so that you can get back to your primary customers, billing, collections, regulatory maintenence, etc, etc...that's where the problems arise.
I was told that to be independent at least by my understanding would be to work for more than 1 carrier for that i need my own commercial insurance.
After that I could apply for my own authority and that will allow more freedom to book my own freight with potentially better rates
I have also been told that I don't need my own authority to book my own freight.Hence my apprehension and the need for more research on the subject.
I live outside of Chicago so i believe getting loads out should be good but after that I need resources to keep me going weather its back to Chicago or anywhere else.
Leasing on with someone would be a choice given the right scenerio.
All I am trying to do is limit the learning curve and ask questions to help get me going.
I do some currior work now and have been in business most of my adult life so I have an understanding both ups and downs of what can happen.
Please feel free to advise on any issues you think are relavent to my situation
Thanks
Larry
After that I could apply for my own authority and that will allow more freedom to book my own freight with potentially better rates
I have also been told that I don't need my own authority to book my own freight.Hence my apprehension and the need for more research on the subject.
I live outside of Chicago so i believe getting loads out should be good but after that I need resources to keep me going weather its back to Chicago or anywhere else.
Leasing on with someone would be a choice given the right scenerio.
All I am trying to do is limit the learning curve and ask questions to help get me going.
I do some currior work now and have been in business most of my adult life so I have an understanding both ups and downs of what can happen.
Please feel free to advise on any issues you think are relavent to my situation
Thanks
Larry
well, with that explanation, independent is probably correct. I think if I was going to do that though, I would just get my authority. Getting the authority isn't that much of a deal as I understand it. Building your business and business relationships is the challenge in a tough economy.
You'll be doing most of that anyway if you work through other carriers. The insurnace is the main cost of having your authority and I'm thinking that the insurance will cost about the same with either option.
With that said, I've never actually done either. I have looked at it, but never done it. So, I really should let someone with direct experience help you. I have always been a leased o/o in this business. I did drive t/t for a few months as a company driver until I bought this truck.
Please don't take my earlier post as demeaning in any way. I just know how easy it is to get taken advantage of out here. The freight industry as a whole can be pretty brutal to newbies...at any level. Your doing your research and that is a good thing. At some point you will realize how many really bad things you've avoided by doing good research. You'll still get bit some...but probably not as much and maybe not as bad.
OVM says "the learning curve always takes a turn through your wallet". There is a lot of wisdom in that comment and no sure way to avoid it...but with research, you'll at least know to plan on it.
You'll be doing most of that anyway if you work through other carriers. The insurnace is the main cost of having your authority and I'm thinking that the insurance will cost about the same with either option.
With that said, I've never actually done either. I have looked at it, but never done it. So, I really should let someone with direct experience help you. I have always been a leased o/o in this business. I did drive t/t for a few months as a company driver until I bought this truck.
Please don't take my earlier post as demeaning in any way. I just know how easy it is to get taken advantage of out here. The freight industry as a whole can be pretty brutal to newbies...at any level. Your doing your research and that is a good thing. At some point you will realize how many really bad things you've avoided by doing good research. You'll still get bit some...but probably not as much and maybe not as bad.
OVM says "the learning curve always takes a turn through your wallet". There is a lot of wisdom in that comment and no sure way to avoid it...but with research, you'll at least know to plan on it.
First, you are independent, whether you have your own authority or lease to a carrier - the difference is whether you can legally book your own loads, covered by your own insurance. Some carriers [Panther, for one], will allow you to find your own, if they aren't having any luck, but they will book the load, as it will be run under their authority.
I think you have a lot of research yet to do, but you're off to a good start - just keep at it until you think you know exactly what's what.
Then be prepared for that 'turn through the wallet', lol.
