Fuel Surcharge Discrepancies

Teflon

Seasoned Expediter
I accepted a load with a .43 FSC and was paid .25 in the settlement.... I know that the surcharge in the load offer is an estimated amount, but this seems a little excessive to me. Sometimes I accept loads based on the fuel surcharge. In the above example there was a lot of deadhead on both ends of the trip, but the .43 FSC made it a good load. The .25 FSC payed a little over $400.00 less than what I expected from the load. To be fair, most of my settlements show within .05 of the load offer FSC.

Has anyone out there had a problem with fuel surcharges paid being significantly different than what was stated in the load offer?
 

babs3361

Expert Expediter
Yes we have and when I submitted a complaint we got the same answer as you. I talked to someone higher up and explained to them that the major difference in the load offer FSC and what was paid also made the pro non profitable and that we depend on the FSC to closely reflect what was stated in the pro. While this doesn't happen often it does happen.
 

RichM

Veteran Expediter
Charter Member
Care to tell us what Carrier you are leased to?, Pretty gross estimation to be off .18 cpm ,I think you have a good case to argue.
 

LDB

Veteran Expediter
Retired Expediter
I've had one that was grossly wrong, paying about 18cpm less than the QC said. Most of mine pay more than the estimate, albeit less than a penny more per mile. I agree that often the fsc is the deciding factor in accepting a load. When I complained I was told the customer didn't pay what was in the load offer so they could only pass through what the customer paid. I don't know why they didn't pay it and don't care either. In that 1 out of 200 situation the company should pay the amount stated in the load offer even if some comes out of their portion. Then they should bill the customer for the balance.

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.
 

mrgoodtude

Not a Member
Kudos to those who keep their eyes open....
This is a business to all that participate as we work with percentages and ultimately your bottom line is all that matters when all is said and done...
Don't give a rats ##### about what the majority thinks and with that said, if your company employs these type of tactics in order to make a profit...
Grease the brown if you don't like it dry.
Hold all accountable if it affects you, lest you be sold out to Werner or Prime Expedite.
Laugh if you will but it is a reality you had better face...
I don't work for said company and I can say with no reservations it has never happened to me 2 years with the FED.
We don't always agree and I am not their favorite person sometimes, BUT I assure you I have never been screwed out of what they initially promised.
They have always been upfront with what I have accepted and I have the settlements to prove it.
Don't get me wrong...
I DO NOT WANT ALL YOU COMING OVER AND SLOWING MY SYSTEM.
But I would be remiss if I didn't tell you guys to hold your carrier accountable and if it doesn't work out for you then reevaluate your station in life and be true to yourself.
Here is a thought take a digital cam out of your Targus bag and capture the load offer with the info that is important to you..
Complete said run and compare the resulting settlement if you have a variance close to the aforementioned call OOIDA.. 816-229-5791 or 800-444-5791
They are the only ones after all that look out for us tarded misled folk or at least a responsible voice for us hard working trying to enjoy life folk.
I apologize in advance for not being perfect and or seeing this post at a time my passions should not be stirred but they are..
I am just tired of the system trying to dictate the paramaters that we are allowed to breath.
We bought into the expedite dream and still believe in it even sold a 3200 sq foot house for bearly 200k in a really nice community (I can show you pics), regrets at the outset but after figuring out the program with Conway and moving to the Fed we are content with our decision..
Postscript...
Want to be a business person select the right business partner.
As for me if the Fed starts doing the things you describe tommorow I will leave and never look back....
Its not personal it is simply good business and that is the way we do it.
God speed on your endeavors and I mean that.
Mike
 

tonymcc

Expert Expediter
Yes, we've had it happen ... once, I think ... and got the same answer as you. Just like you, we accpeted the pro based on the entire revenue, and in our case also, we wouldn't have accepted that pro with the low fsc. We were told the customer's contract had just changed and the QC sent the old amount and the customer paid the new amount. Even so, we didn't get the addendum paid for the same reasons as you. But we've also had the same thing happen in reverse. We've gotten more than we expected ... more than a few pennies on one or two, maybe. We watch the numbers closely and reconcile every payment to make sure things are paid as expected.

Sorry that happened ... don't think they'll do anything. Let us know otherwise. But it can happen in reverse <g>.

Tony
 

davekc

Senior Moderator
Staff member
Fleet Owner
Same issue with the same results. Couple of times a year this comes up and yes it should be corrected in my opinion. On the other side, like the rest of you, alot of others pay higher than what was quoted.
Unless the pendulum swings the other way, I am not one to say too much.
My bottom line prefers this system much better than a flat rate system.









Davekc
owner
22 years
PantherII
EO moderator
 

babs3361

Expert Expediter
Agreed Dave it has only happened 2 x in 4 yrs and most of the time we get more than the quoted price so all and all it works out but still burns when it happens and I do feel that they should pay what was quoted over QC, but bottom line and apples to apples we are far ahead of the game.
 

FAMILYEXPDT

Seasoned Expediter
Should they only what was quoted over the QC when the customer pays more? Last year FSC was 1786$ more than quoted.....not complaining here when the occassional fsc is less.


-charlotte
 

nightcreacher

Veteran Expediter
ldb
I talked with ooida last year about fuel surcharge,there answer was,if a carrier doesnt specify they pay fsc,then they can and will give what they feel like.
If in your contract says you get 100 percent of what is charged,you should get 100%,but if i worked somewhere that only let me feel i was getting an estimate of what they might charged the customer,how can I be sure what my fsc is going to be,and with the higher costs to do business,your profit might just be the fsc
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
OK TEFLON, you got hosed that time. For??? a couple hundred?? Why don't you offer to pay back what you have been over paid in the past couple years, if'n they cough up on this run? Sound fair?
 

Moot

Veteran Expediter
Owner/Operator
Why is the f.s.c. estimated? Are the total miles estimated? Is the gross pay for the load estimated? Is the customer's bill estimated?
 

davekc

Senior Moderator
Staff member
Fleet Owner
Why is the f.s.c. estimated? Are the total miles estimated? Is the gross pay for the load estimated? Is the customer's bill estimated?
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Alot of components may be estimated at the time they are booking the load. Biggest reason is they may not know who is paying the frieght bill at time of dispatch. If Joe's widgets wants to send a load to Toyota, that rate will be different depending on who's paying. Toyota will have more discounts available to them, than Joe's widgets. A company with a contract will also have a different formula for FSC calculations than a first time or occassional customer may have.










Davekc
owner
22 years
PantherII
EO moderator
 

Moot

Veteran Expediter
Owner/Operator
Thanks Dave, I'm still operating under my Con-Way contract and its sliding f.s.c. Taking a load based on f.s.c. seems risky when the f.s.c. is estimated. But if it all works out in the end...
 
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