FSC-Why don't companies pay 100% of it to us?

[guido4475]

I know I am going to open up a can of worms here, but why do most companies not give us, the o/o, or fleet owner, 100% of the fuel surcharge? If they were paying for the fuel, it would be one thing, but they are not.Even though they are providing a fuel card for us to use, there are fees for using that card, which is understandable.They are implementing this fee as a way for us to pay for using their credit/cash flow which I understand.But this leaves the lack of 100% fuel surcharge pay in question.I'd love to hear from Company reps on this as well, just curious.

 

[greg334]

Who's the company?

 

[OntarioVanMan]

Heck We don't even get 100% of the FSC and neither does the Feds...this general averaging crap stinks....

 

[moose]

I would question the leagality of such act done on DOD loads.

 

[guido4475]

Who's the company?

Greg-are you seroius? The company is who you are leased to...Get it? lol.

 

[OntarioVanMan]

I doubt any exec is going to attempt to answer this question without some kind of razzle dazzle and few drops of snake oil..

 

[guido4475]

I doubt any exec is going to attempt to answer this question without some kind of razzle dazzle and few drops of snake oil..

I know-kinda like walking into the lake of fire.But I was and am hoping that most would be courteous on this towards them if they did reply.Thought I'd take a long shot on this.

 

[Moot]

I know I am going to open up a can of worms here, but why do most companies not give us, the o/o, or fleet owner, 100% of the fuel surcharge?

Same reason they over charge for Qualcomm, insurance etc. Because they can!

The question you should be asking is: Why do O/O's and fleet owners lease to companies that don't pay 100% of the fuel surcharge?

 

[OntarioVanMan]

Same reason they over charge for Qualcomm, insurance etc. Because they can!

The question you should be asking is: Why do O/O's and fleet owners lease to companies that don't pay 100% of the fuel surcharge?

uhhh..because the ones that do are not an option to me...

Like Turtle said..if I hate stupidity P2 isn't the company for me...

 

[Moot]

Like Turtle said..if I hate stupidity P2 isn't the company for me...

Learn to embrace stupidity, even celebrate it! I know I have.

 

[guido4475]

Same reason they over charge for Qualcomm, insurance etc. Because they can!

Youre missing the whole point here, Moot.

The question you should be asking is: Why do O/O's and fleet owners lease to companies that don't pay 100% of the fuel surcharge?

There are very few that do this to my knowledge.

 

[Moot]

There are very few that do this to my knowledge.

Do what? Also why did you insert "Youre missing the whole point here, Moot." into my quote? It appears as if I'm indulging in illeism. What point did Moot miss?

 

[Dakota]

Do what? Also why did you insert "Youre missing the whole point here, Moot." into my quote? It appears as if I'm indulging in illeism. What point did Moot miss?

Moot sounds confuzzled and is talking about themselves in the third person

 

[guido4475]

Do what? Also why did you insert "Youre missing the whole point here, Moot." into my quote? It appears as if I'm indulging in illeism. What point did Moot miss?

Why did I insert "Youre missing the whole point here, Moot " into your quote? Because you are missing the whole point here.But it seems as if you are offended because I stepped into your private blue space here..lol.I am not as good as figuring out how to break a quote down into separate sentences as some others here, with a reply after each one, so It ended up that way when I tried to do it.Understand?

As Far as you giving the example of the qualcomm and insurance, Those are things that they actually buy for us to do business as well as for themselves...Fuel is not...We purchase that,100% of it.And they charge a fsc on top of that to bring our cost down to the set benchmark price, whichever it may be.So why shouldnt we get all of it to begin with?

 

[Bruno]

This is from the JB hunt share holders report. Now you tell me why carriers are doing it.


2008 Compared With 2007


Consolidated Operating Revenues

Our total consolidated operating revenues rose to $3.7 billion in 2008, a 6.9% increase over 2007. Significantly higher fuel prices resulted in fuel surcharge (FSC) revenues of $730 million in 2008, compared with $480 million in 2007. If FSC revenues were excluded from both years, our 2008 revenue decreased less than 1% from 2007. A 13.5% and 117.3% increase in 2008 JBI and ICS load volume, respectively, contributed to our higher levels of revenue. The increases in revenue of our JBI and ICS segments were partially offset by decreases in our DCS segment as a result of decreased activity for delivery service accounts due to the overall economic slowdown and weak housing market. Our JBT segment revenue decreased as a result of rate declines and reduced tractor utilization, due to decreasing freight demand.




Read more: HUNT J B TRANSPORT SERVICES INC - FORM 10-K - February 26, 2010

 

[greg334]

Oh Mine?

Well crap Guido, if that was the case then my numbers would be off but they are spot on within the limits of where I end up at. Meaning that if they quote the shipment from Tennessee to New Jersey, they pay me TN FSC, not east coast stuff - that's the thing that bothers me.

 

[Moot]

Moot sounds confuzzled and is talking about themselves in the third person

That's because Moot embraces and celebrates stupidity. He reaps what he sows.

Guido, Moot wasn't arguing against an O/O receiving 100% of the f.s.c. He merely raised the question of why someone would lease to a company that didn't pay 100% of the f.s.c.

Before Moot accepted the Cosmic Turtle as his savior; he was similar to OVM, in that he hated stupidity. Stupidity made Moot a very angry person. He has now embraced stupidity and looks forward to the next unseen act of stupidness foisted upon him. Like today when Moot looked in his open payable account. It showed Friday's dry run as P.O.D. Received B.O.L. Not Received. Being that the load canceled before Moot got to the shipper and he was never loaded, there would be no B.O.L. One more way to delay payment to a driver. Moot is smiling and he is at peace waiting for the next act of stupidity to befall him and amaze him.

 

[Bruno]

Now I understand JB hunt pays the fuel for their trucks. But 730 million dollars in FSC back in 2008 is still alot of money. Carriers have found a way to make money off the FSC even if they are not paying for fuel. We moved to Panther partly because they pay us 100% of the FSC. This year will be our best year in the business EVER, thanks to Davekc showing me the ropes at Panther.

 

[OntarioVanMan]

That's because Moot embraces and celebrates stupidity. He reaps what he sows.

Guido, Moot wasn't arguing against an O/O receiving 100% of the f.s.c. He merely raised the question of why someone would lease to a company that didn't pay 100% of the f.s.c.

Before Moot accepted the Cosmic Turtle as his savior; he was similar to OVM, in that he hated stupidity. Stupidity made Moot a very angry person. He has now embraced stupidity and looks forward to the next unseen act of stupidness foisted upon him. Like today when Moot looked in his open payable account. It showed Friday's dry run as P.O.D. Received B.O.L. Not Received. Being that the load canceled before Moot got to the shipper and he was never loaded, there would be no B.O.L. One more way to delay payment to a driver. Moot is smiling and he is at peace waiting for the next act of stupidity to befall him and amaze him.

Thanks Moot for trying to show me the light of pure stupid...

But I'll have to decline...I am fully embraced where I am now and it is getting to be a full time gig...

Stupid is really forever...

 

[Streakn1]

I know I am going to open up a can of worms here, but why do most companies not give us, the o/o, or fleet owner, 100% of the fuel surcharge? If they were paying for the fuel, it would be one thing, but they are not.Even though they are providing a fuel card for us to use, there are fees for using that card, which is understandable.They are implementing this fee as a way for us to pay for using their credit/cash flow which I understand.But this leaves the lack of 100% fuel surcharge pay in question.I'd love to hear from Company reps on this as well, just curious.

Of the three carriers I've been associated with during my trucking carreer, only one did not pay 100% of the FSC to the truck. That was the carrier prior to the one we are currently leased to.

IMO to only piece of the pie that the carrier should be withholding is a small percentage of the base rate charged to the customer for matching the freight with a truck.