Fuel surcharge cargo vans

[rollincoal]

On truckload rates are down right now for me running on all in rates. I think it is more due to demand. Back in December rates were as good or better than what they were December '13 when fuel was more expensive. I believe when freight picks back up this spring rates will be demand driven as always regardless the price of fuel. But there will be a lot of people trying to sell excess loads for below market using fuel price being down as an excuse.

 

[Moot]

logically everyone's rates should drop as the fuel price declines....

That's what I'm trying to find out and why I posed the question. Bill Murray?

 

[Unclebob]

I haven't noticed any drop in the rates that Murray gets for me.
Keep in mind that just because Panthers paying a smaller fuel surcharge doesn't mean they're not charging the customers the same price they always charge them.
We get our full percentage based on price Murray is able to negotiate with the brokers.
Competition from other carriers affects our rates but not the price of fuel.
And we're very competitive!

 

[ntimevan]

Running an 05 sprinter the f.s.c. pays for all my loaded mile fuel costs and puts an extra 2 to .4 cents/mile in my pocket. ...

Not only at Walmart...

 

[davekc]

Most of the time you have to look at the true cost point. For example, using Panther, their straight fuel surcharge is 19 or 20 cents. Certainly not among the higher fsc that others get paid.
But I have to look at what we are really paying . Looking today, the retail price at Tuscaloosa, AL TA, (just because it is first on the list) retail at the pump is 2.99. With our discount, we pay 2.13.
Another would be everyones favorite place, Gary IN. Retail is 2.70 and our price is 1.97
This is for diesel. No idea what discounts are on gas.

Have to factor that with the actual rate and whether DH, tolls, relocation pay and all that is covered.

 

[Moot]

I haven't noticed any drop in the rates that Murray gets for me.

Thanks Bob. That's the info I was looking for.

Keep in mind that just because Panthers paying a smaller fuel surcharge doesn't mean they're not charging the customers the same price they always charge them.

I realize that. The original logic behind the f.s.c. was so carriers wouldn't have to constantly change their published tariffs to compensate for erratic swings in the price of fuel. While Panther is still charging their customers their published tariff (discounts where applicable), the customer is getting or should be getting a break on the f.s.c. or they will shop elsewhere.

We get our full percentage based on price Murray is able to negotiate with the brokers.
Competition from other carriers affects our rates but not the price of fuel.
And we're very competitive!

Eventually the price of fuel will affect your rates. I was just wondering if the drop in the price of fuel was having an effect on rates yet. In trucking, oil rules!

 

[Murraycroexp]

Thanks Bob. That's the info I was looking for.


I realize that. The original logic behind the f.s.c. was so carriers wouldn't have to constantly change their published tariffs to compensate for erratic swings in the price of fuel. While Panther is still charging their customers their published tariff (discounts where applicable), the customer is getting or should be getting a break on the f.s.c. or they will shop elsewhere.


Eventually the price of fuel will affect your rates. I was just wondering if the drop in the price of fuel was having an effect on rates yet. In trucking, oil rules!

Sorry, playing catch up.
Yes, recent fuel drops have affected the average rate many of the loads "go for".
That said, much of the time that usually only affects the profit margin we enjoy.
We try to not let it affect the truck's pay until the rate gets too low to not adjust.
Lately it has meant a little more sitting and a few more occasions when we need to go to the driver and ask if they want the load if it pays $XXX.
We try to work WITH the brokers but most don't communicate a lot. Or don't have time to.
If a posted load used to get 10-15 bids, I'm betting they are drawing something like 30-50 bids now.

Just 2 cents from the bottom of the totem pole.

 

[GrassHopperr]

Edit:// TMI about Russians

 

[tknight]

logically everyone's rates should drop as the fuel price declines....either All in carriers and or FSC break out carriers....I remember when it was like in the mid .20's cents at one time over at E1....

Yea right pay .08 a mile less for fuel and they want to cut your rate by .50 a mile that's fair right?

 

[FlyingVan]

I'm with you, OVM. Whith my 04 Sprinter, when I was leased to companies that were paying fuel surcharge (Landstar, FedEx), there was NO time that I wasn't making money on it. In other words, I always got more money from the fuel surcharge than I used to buy fuel. Always.

 

[FlyingVan]

Curiously enough, I was pocketing the most money off the fuel surcharge at the time when fuel was the most expensive. So, with a vehicle with good fuel economy, the higher the fuel goes, the more money I keep. Lol.

 

[Turtle]

Curiously enough, I was pocketing the most money off the fuel surcharge at the time when fuel was the most expensive. So, with a vehicle with good fuel economy, the higher the fuel goes, the more money I keep. Lol.

Absolutely. Back when diesel his $5 a gallon, I was all giggity.

 

[bolter82]

XPOExpress fsc is $0.10/loaded mile

 

[RoadHouse]

I still shake my head at how cheap some of you guys run for. I also knew that as soon as fuel prices went down the carriers would try and cut the rates down to win more bids. They can try and cut the rates five more cents per mile because fuel is cheaper. It's stupid. I know for a fact that if cargo vans ever get 40 miles to the gallon, and the carriers find out about this, they will cut the rates down even further. I look at some of the line haul rates for straight trucks and tractors at 1.10 per mile and wonder why anyone would invest in over 100k vehicle for those kind of rates. Why, why, why do drivers continue to sell their time for so cheap? You're out on the road living a rough life away from your friends and family, you should be paid good for this. I still can't figure drivers out. I won't run anything for under a dollar a mile; not even out of Laredo. But I don't take loads to Laredo anymore, so that's a moot point! When will we learn to not allow our carriers to take advantage of us? When?

 

[RoadHouse]

XPOExpress fsc is $0.10/loaded mile

That's very low on top of the 70 cents they pay you guys for line haul. Are they still paying only 70 cents per mile on NLM loads? Even at 80 cents per mile, you're still getting shafted. I never run my van for anything under a dollar per mile, and even that is a cheap rate these days. Look at inflation. Look at all of the carriers that want all of this new and shiny equipment, but they continue to take, and take, and take so much from the drivers. I sometimes wonder if drivers are masochists. Perhaps we need to read Marquis De Sade

 

[OntarioVanMan]

That's very low on top of the 70 cents they pay you guys for line haul. Are they still paying only 70 cents per mile on NLM loads? Even at 80 cents per mile, you're still getting shafted. I never run my van for anything under a dollar per mile, and even that is a cheap rate these days. Look at inflation. Look at all of the carriers that want all of this new and shiny equipment, but they continue to take, and take, and take so much from the drivers. I sometimes wonder if drivers are masochists. Perhaps we need to read Marquis De Sade

we must have different math as to what is "cheap".... you must have a rather HIGH CPM to need so much a mile?

at a buck a mile I would make about 400% profit on my meager .20 CPM budget.....

a lot are sitting extensively because they are NOT competitively priced....they are living in Lala land...sure who wouldn't want 1.50 - 2.00 a mile every load thats not reality wake up!....BUT the market only supports those that can work within what it offers...WE do not make the market but have to adjust to it.....

when my CPM was over double what it was Yes I needed more....but now I've cut costs and can run VERY competitively! I am the Walmart of expediting....

 

[Moot]

I won't run anything for under a dollar a mile; not even out of Laredo.

That's very commendable of you. What carrier are you leased to and how do they feel about you turning down loads that pay less than a $1.00/mile?

 

[OntarioVanMan]

That's very commendable of you. What carrier are you leased to and how do they feel about you turning down loads that pay less than a $1.00/mile?

If I were a dispatcher I'd offer him .99 loads just to mess with him.....LOL sorry guy just my mean streak showing.....LOL

 

[Tennesseahawk]

we must have different math as to what is "cheap".... you must have a rather HIGH CPM to need so much a mile?

at a buck a mile I would make about 400% profit on my meager .20 CPM budget.....

a lot are sitting extensively because they are NOT competitively priced....they are living in Lala land...sure who wouldn't want 1.50 - 2.00 a mile every load thats not reality wake up!....BUT the market only supports those that can work within what it offers...WE do not make the market but have to adjust to it.....

when my CPM was over double what it was Yes I needed more....but now I've cut costs and can run VERY competitively! I am the Walmart of expediting....

IOW, you settle for less, because you have less overhead, instead of taking advantage of the situation, as well as contributing to keeping the rates healthy. IOW, you're part of the problem.

Roadhouse asked when we will stop letting carriers take advantage of us? As soon as we, as an industry, stop thinking we have to run for hotdog money. But it isn't just the carriers who are taking advantage because they want to be rich; they do it out of necessity, because they've priced themselves into a corner, just to keep us moving, and to leave the lights on.

 

[OntarioVanMan]

IOW, you settle for less, because you have less overhead, instead of taking advantage of the situation, as well as contributing to keeping the rates healthy. IOW, you're part of the problem.

Roadhouse asked when we will stop letting carriers take advantage of us? As soon as we, as an industry, stop thinking we have to run for hotdog money. But it isn't just the carriers who are taking advantage because they want to be rich; they do it out of necessity, because they've priced themselves into a corner, just to keep us moving, and to leave the lights on.

I don't see there s problem.... Unless one has pie in the sky expectations. In t the popular mantra the ever popular supply and demAnd? And "market supply" ? one can have that high of expectation all day!! But reAlity sets in..... You think nearly every carrier works the same way.... All them high paid educated guys ....
how much is a CV driver worth is the question