fuel surcharges

[davekc]

NLM is bid freight. Some of it good, and some of it is junk.
Sometimes two pieces of junk can make a good.

 

[CharlesD]

Just a quick math question. What's the difference between $1.00 a mile and a .40 surcharge and a flat rate of $1.40 a mile without a surcharge?

 

[OntarioVanMan]

Just a quick math question. What's the difference between $1.00 a mile and a .40 surcharge and a flat rate of $1.40 a mile without a surcharge?

The .40 is a variable number...The $1.40 is always a $1.40

 

[davekc]

Might be a big difference if it is a fleet owner driver and depending on what their pay plan is.

 

[CharlesD]

Ok, what I was really driving at was this. Let's assume just for the sake of my example that the money I mentioned is what is going to the driver. As a driver you see two loads available, same mileage, both going to a good location, etc. One load is paying a lower rate with a FSC and the other load is paying a higher rate with no FSC. Both loads come out to the same rate per mile for that run. Is it that important that a certain portion of the revenue be labeled as a surcharge, or is what really matters the total revenue for the load?

 

[davekc]

For a owner operator, I would say the total rate is what I would watch.
For a fleet driver at 40 percent, they would recieve .56 per mile at 1.40 per mile flat rate. With the same rate and .40 cents is the FSC, that driver now makes .40 cents per mile.

Respectively, if the driver is on a 60/40 plan, the pay is .84 minus fuel. Subtract .45 per mile and you have .39 on a flat rate.
60/40 plan with driver getting 100 percent of FSC
If it is a 1.00 per mile and the FSC is .40 then it would (60 +.40 -.45 fuel cost) total of .55

Driver on a 60/40 plan and getting 100 percent of the FSC is making a extra .15 per mile. This is a factoring 9mpg and using a straight.
Extra .15 may drop some depending on the DH involved in the run.