Fuel Surcharges

[MSinger]

1997 Dodge Ram 3500 with 12' cube. Dock high with jackstands. 5.9L Cummins Turbo Diesel.

I am the o/o of a 12' cube truck that is currently leased onto a small expediting firm in Indianapolis. When I signed on in May of 2003 I was to be paid $1.05 per loaded mile. The cost of diesel fuel at that time was approx. $1.30/gal. They have recently bumped my pay rate up to $1.08 per loaded mile but that's when fuel was up to about $2.15/gal. Needless to say the extra 3 cents a mile are not making up the extra I am paying for fuel. I know they are charging the customer a fuel surcharge but I do not know the percentage. I feel like I should get 100% of the fuel surcharge since I am an o/o and am responsible for buying all of my fuel. They should then add that on to my $1.05/mile rate. That is just what makes sense to me. But I do not know how any of the other companies handle this. I am otherwise happy with the company as they keep me busy and work around my crazy schedule as I am also a full-time firefighter/paramedic who works 24 hours on and 48 hours off at FD.
Anyone who could respond with some answers on this would be greatly appreciated.

 

[RichM]

You should get 100% of the fuel charge,anything less is grounds to quit.Perhaps you can ask a customer that you go to, what is the fuel surcharge that they are paying your company.Also I believe you have the right too see how much your comapny is charging shippers.

 

[Twmaster]

Why is it that so many expedite/courier/trucking firms feel the need to gouge their contractors at every turn?

I am not saying all companies are bad but there are plenty out there that need to be clubbed with a stout stick.

Msinger, it sounds like your company needs to get right by you or you need to get gone by them. Just my 48¢ (2¢ adjusted for fuel)

--
Mike N

Faster than a speeding poulet.

 

[Glen Rice]

How about talking to the operations manager and ask him directly what is the fuel surcharge and why your not getting your fair share? Can't hurt to be direct? Good luck.

 

[LDB]

I agree. You're going to have to ask about it but be prepared for whatever response you get. In your situation where this is a part time gig in between the regular gig you are presumably pretty limited as to carriers. They may view it as an extra revenue source to them since you are potentially stuck with them and whatever they do. Good luck.

Leo
truck 767

Support the entire Constitution, not just the parts you like.

 

[highway star]

It is my understanding that if an I/C is paid by the mile the company is not obligated to show what a customer pays for a load. If the pay is percentage then the contractor can ask to see the billing for a load that he hauled.

 

[MSinger]

Thanks for all the advice. I am an easy "doormat" for fear of being cutoff from the good runs and knowing that my other options of going somewhere else due to my schedule are slim.
I have even voluntarily done "van loads" for 83 cents per mile to help them out.
My feeling is that the contract that I signed says I am to be paid $1.05 per loaded mile, period. If they need a "van load" covered and I am the only one able to do it than they still should cough up the $1.05/ mile or turn the run down. The main reason I feel like that is for the simple fact that my style of truck is quite rare. You don't find too many high cube trucks that are 1) dock high and 2) equipped with jack stands (to satisfy the silly union rules at some of our favorite plants). So you know they are probably getting straight truck rate on some of these runs but only paying me cube rate. I really don't have a problem with that since that is what is in my contract but by the same token if they send me on a van run I should get my contracted rate ($1.05) as well. Does this make sense or am I in a fantasy land??
I thought I would just run this by some of you folks out here in the business and get your feedback before I approached the company. Thanks for any and all replies.


1997 Dodge Ram 3500 5.9L Cummins Turbo Diesel with 12' cube body mounted dock high with jack stands.

 

[Tom Robertson]

Much of what you are asking depends on some details you have omitted.

Are you really running expedited shipments? That is, once you deliver, are you waiting around to get a return shipment or are you expected to return empty?

If you are actually getting a return load, then I would say you are being paid fairly...even without the surcharge. Most companies pay only a slightly higher per mile charge for an 18' truck.

If, however you are moving this material one way and returning home you really should renegotiate you deal.

 

[MSinger]

1997 Dodge Ram 3500 with 12' cube. Dock high with jackstands. 5.9L Cummins Turbo Diesel.

Tom,
Most of the freight is one way only just for the fact that I really cannot stay out and wait for something coming back due to having to be back at FD every 3rd day. I have on a few occassions "gotten lucky" and had a back haul but guess what......it was a much discounted rate. But it paid for my fuel to come back that I was going to have to burn anyway. If I have freight going from point a to point b and upon arriving at point b they have something going back to point a than I don't mind the little discount because I figure the company is giving the customer a break for something simple like that. But if I have to go elsewhere to pick up something to bring back than to me that is an entirely different run and just makes me wonder if the company is getting full tilt and only giving me a discount rate because "hey, you had to come back anyway".
I have also spoken with a few of the other drivers who have been there a while and they usually Deadhead back because they have not had much luck getting backhauls and have basically wasted their time when they could have been back home and in service for something else.
Like I said, most of this is probably my fault because I do enjoy this work so much that I don't like to make any waves. It is a great part time supplement income to my Fire/EMS job and no additional income taxes due to all my right offs is really a plus.

 

[terryandrene]

By now I suspect you have or should have read Tom Robertson's post "Respect - Driver turnover" The answer to your question is contained therein. I feel the same way. Your contract should be the controlling document for the compensation for the loads you take. If you are going to work outside the terms of the contract this time, i.e. van rates, what else will you do later? On the other hand, if van freight is all that's avail on off-duty time, most of us would rather have that than nothing if the van money is acceptable/profitable.

 

[jaminjim]

Sounds like EGL

 

[Tom Robertson]

MSinger...
DO the math... you are not running for 1.05 per mile...you are moving freight for .52 1/2 cents per mile.
Take the time to figure out you REAL cost per mile...include the value of your truck (even if you owe nothing, your insurance, fuel and maintenance. Now total those cost on an annual basis and determine the remaining life on your truck before serious repairs or replacemnt is necessary.
Use the TOTAL mileage you are driving, to obtain your pay per mile (.525 ) now deduct your cost per mile... (est. .27) what remains is a sum that you are really earning... divide that sum by the time spent... my guess is that you are making about $10 per hour. If you are satisfied with that, its a good deal for you... if not, go back to your company to renegotiate... be prepared to walk out if your reasonable demands cannot be met.

 

[nightcreacher]

fuel sur-charge is not your reg pay,its addition to,and is based on loaded miles.
it changes every week as fuel prices go up and down. if you are not getting the 100% of what your company charges their customer,and some companies dont charge enough,but you still are to get the charges,1 exception,and that is if the company is paying for t he fuel,only exception,
if you are happy way things are then dont make waves,but i wouldnt stay with no sur-charge