Sorry, I'm driving my van and not looking for anyone to put in it, facetiousness not withstanding. Since my driving habits get about 10% better mpg than the formula used and gasoline is a little less than diesel I am fine with our fsc.
FSC-Why don't companies pay 100% of it to us?
- Thread starter guido4475
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Sorry, I'm driving my van and not looking for anyone to put in it, facetiousness not withstanding. Since my driving habits get about 10% better mpg than the formula used and gasoline is a little less than diesel I am fine with our fsc.
And YRC stock is down to 22 cents today.
Well the fsc changes every Tuesday and the price of fuel changes with about every gasoline station so it's all approximations. When I'm under dispatch getting fsc I'm paying about 80 cents per gallon net. Now, if you factor in the 1/2 shower and 1/2 drink with each 15 gallons and the fact that I usually buy 15 gallons at a time, my net cost drops to about 50 cents per gallon.
If I recall, you guys could opt out of the flate rate FSC program and take .62 or .59 percent of the FSC. I believe that was posted when that was implemented but can't remember by who unless I did some searching.
They have a elective flat rate program where we are at and we ran the numbers for a full quarter and compared. We found we lost about 250 per truck per month under that plan so we didn't change.
I think with any flat rate program, it is impossible to know whether you are getting that 100 percent.
They have a elective flat rate program where we are at and we ran the numbers for a full quarter and compared. We found we lost about 250 per truck per month under that plan so we didn't change.
I think with any flat rate program, it is impossible to know whether you are getting that 100 percent.
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From what I have seen when a carrier does not charge fsc they are simply looking to try and grab some market share. Fuel is one of the largest expenses in our industry. You will probably never see a company that has company equipment do this. Why? Because they are paying for fuel and they understand that FSC is an offset to expense, it should not ever be used as a marketing tool in my opinion at the expense of the owner operator.
I stand corrected and need to revise my statement. Any good truckload carrier is not making money unless they are taking it and not passing it through to the actual fuel purchaser. Most fsc starts at a $1.10-$1.25 base. So in a scenario...fuel is $3.00 per gallon for round numbers, then you subtract the base to get $1.75 per gallon of additional cost. If a tractor trailer averages 6.5 mpg than you have an "additional cost over base" of .27 cents per mile for example. LTL carriers are collecting a lot more than .27 per mile for that loaded trailer running down the road and they can make a profit somewhat legitimately. If the truckload carrier is paying the owner operators a fair fsc program, they really should not see a profit.
Very Good Post John.
Depends on how the carrier charges, some charge on a per mile, some charge on a % basis. Often times the customer dicatates the fsc program and the carrier must determine if it is adequate to cover the owner operator, or if they need to walk away from the business.
correct..there is no real or set average...you can only look around and hear what others are getting and make up your own mind if you are getting a fair deal...if you feel shorted, take it up with your carrier why they seem to be a little light...communicate...
Dakota
Veteran Expediter
Trying to get answers out of my company is like pulling teeth, they are so big it's hard to get answers from the top without going through layers and layers of B.S.
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Hmmm
I'm use to dealing in % of flat rates. When the fuel goes up so does the load pay hence our pay goes up to compensate for the cost in fuel prices. The % can go up too to compensate. Sometimes I think the FSC is all voodoo and ops worry about it too much. Some contracts pay more FSC then others. What if the carrier is making buku bucks on the linehaul and paying you 1.20 per mile then the FSC. But if you weren't on a str8 % you will miss out on that increase in pay? Does anyone else feel this way about % versus base plus FSC? A lot too depends on the program your on with your carrier. So whats a good average for a str8 truck .30-.40 for the FSC?
I'm use to dealing in % of flat rates. When the fuel goes up so does the load pay hence our pay goes up to compensate for the cost in fuel prices. The % can go up too to compensate. Sometimes I think the FSC is all voodoo and ops worry about it too much. Some contracts pay more FSC then others. What if the carrier is making buku bucks on the linehaul and paying you 1.20 per mile then the FSC. But if you weren't on a str8 % you will miss out on that increase in pay? Does anyone else feel this way about % versus base plus FSC? A lot too depends on the program your on with your carrier. So whats a good average for a str8 truck .30-.40 for the FSC?
another thing to think about when on a flat rate fsc is the formula used. EIA use the formula of natl. avg. fuel - 1.25 [the cost govt.says it should cost ] = _____ divided by mpg. = weekly fsc. amt. paid to truck. the trick and money maker for companies is what they use for trk mpg. most figure it on 10 mpg for a st. trk. nowdays most are getting less than that which = profit to the co. over a fleet that can be alot of $
The range varies from 8-10mpg for a straight truck depending on the company it seems. One also has to look at driving style and habits. How far from the floor does that far right pedal stay? Are tires low rolling resistance? Has that mpg robbing visor been removed from above the windshield? Have those mpg robbing solid and heavy mudflaps been replaced? Are there Airtabs on the box? Are there mpg robbing mirrors on the fender corners? Is there an APU on the truck? One can easily add over 1mpg to their average by doing things to minimize fuel consumption. I took an 8.5mpg truck and made it a 9.5-10mpg truck. My fsc was paid based on 9mpg average so I was usually always on the plus side with fsc money. There's no reason anyone who decides to can't do the same.
Our formula is $1.30 on the Midwest Average from EIA...
10mpg for st8s and 15 for van/sprinters and they round off to the LOWEST number....we don't get the .8 or .4...if it is 11.8 we get 11 and so on....so we don't get 100%.