It would depend on how much the decent paying customer ships. One could go broke with either one, it would just depend on how fast.
Looks like the rest of it is confirmed in another post. Pretty much a mirror as to what I said earlier.
http://www.expeditersonline.com/forum/fedex-custom-critical/31651-fsc-what-happened.html#post251420
Looks like the rest of it is confirmed in another post. Pretty much a mirror as to what I said earlier.
http://www.expeditersonline.com/forum/fedex-custom-critical/31651-fsc-what-happened.html#post251420
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Ok after leaving FedEx Custom Critical as a owner/driver I can say this. This program has done nothing but take money out of the owners and driver's pockets. I would do a rate quote on there website about once a month to see what they was charging the customer. I almost fell out of my seat when I saw them charging over a $1.25 FSC a mile on a E-unit that they was paying .41 a mile to the O/O. Now try to go online and do a rate quote you can't. FedEx doesn't want you to know what they are asking the customer to pay. This is why we pulled our trucks and went to Panther. Now the fleet I manage for a owner has pulled all but one of his trucks. If you think FedEx don't have something to hide ask them why they locked the (get rates and transit time) on their website. You now have to be a customer to see it, when before you didn't. But their not making any money on it.
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Bruno you must not have recieved this memo a few years ago about FSC:
Fuel Surcharge on All Shipments
You will receive a fuel surcharge that will pay you a flat rate per mile on all shipments. No matter what customer you are serving, you will receive a fuel surcharge.
Fuel Surcharge on All Authorized Miles
You will be paid a fuel surcharge from the first authorized mile of deadhead to the last authorized mile of layover. Additionally, CR and DR (reefer) units will receive an extra amount per mile on their fuel surcharge on all authorized miles. This will offset the extra cost of fuel for reefer units.
The net effect of this fuel surcharge plan is that you will pay no more than $1.20 per gallon for all authorized miles.
Benefits to You
• You will receive a fuel surcharge from your first authorized mile
to your last authorized mile on each run.
• You don’t have to worry about whether or not the customer pays
a reduced fuel surcharge or no surcharge at all. You will receive
a flat rate fuel surcharge on every shipment.
• Your out-of-pocket expense should be approximately $1.20
per gallon.
If you will remember before all this took place some loads had no FSC on them and others had a grossly inflated FSC added to the load. You might also recall that when delivering in the middle of nowhere you had to give FCC the first 100 miles for free on the way to an express center then after that first 100 miles as a D unit you were given .20 cents a mile. In today’s world .20 a miles does not even come close to covering the cost of fuel. Now we are able to deliver in the middle of nowhere and if we do not get a pre assignment which seems to be happening more and more you give FCC the first 50 miles of dh then you will get the .20 to your express center plus now you receive the FSC on every authorized mile you drive. With the fuel mileage we are getting this more than covers our fuel costs to get to an Express Center.
We personally like the loads to the middle of nowhere because we like the drive and we like what the loads pay. We no longer worry about how much the fuel is going to cost to get out of that area as we receive enough on the load to begin with to help get us back to civilization and with the FSC on every authorized mile we do fine.
We also are able to take the discounted load now as they pay enough to run them mostly due to the FSC on every mile. Covering the loads for our core customers helps FCC and us keep moving and being profitable.
As far as I am concerned I do not care what FCC does or does not charge a customer I am only concerned that we continue to see the bottom line improve for us. We never doubt when we see what a load will pay and the miles that we will receive exactly what is shown on the offer and also what we will get for pay to our layover which sometimes can be 500 miles or more away in the west. We know that our Express Centers are busier then than say Seattle, Portland, or Spokane so we can make the choice to sit a little bit and see if something comes in or be paid to get back to Sacramento or Reno.
As far as I am concerned the new way of paying FSC has done nothing but helps our bottom line in the long run and allows us to drive in the type of areas we like best.
Fuel Surcharge on All Shipments
You will receive a fuel surcharge that will pay you a flat rate per mile on all shipments. No matter what customer you are serving, you will receive a fuel surcharge.
Fuel Surcharge on All Authorized Miles
You will be paid a fuel surcharge from the first authorized mile of deadhead to the last authorized mile of layover. Additionally, CR and DR (reefer) units will receive an extra amount per mile on their fuel surcharge on all authorized miles. This will offset the extra cost of fuel for reefer units.
The net effect of this fuel surcharge plan is that you will pay no more than $1.20 per gallon for all authorized miles.
Benefits to You
• You will receive a fuel surcharge from your first authorized mile
to your last authorized mile on each run.
• You don’t have to worry about whether or not the customer pays
a reduced fuel surcharge or no surcharge at all. You will receive
a flat rate fuel surcharge on every shipment.
• Your out-of-pocket expense should be approximately $1.20
per gallon.
If you will remember before all this took place some loads had no FSC on them and others had a grossly inflated FSC added to the load. You might also recall that when delivering in the middle of nowhere you had to give FCC the first 100 miles for free on the way to an express center then after that first 100 miles as a D unit you were given .20 cents a mile. In today’s world .20 a miles does not even come close to covering the cost of fuel. Now we are able to deliver in the middle of nowhere and if we do not get a pre assignment which seems to be happening more and more you give FCC the first 50 miles of dh then you will get the .20 to your express center plus now you receive the FSC on every authorized mile you drive. With the fuel mileage we are getting this more than covers our fuel costs to get to an Express Center.
We personally like the loads to the middle of nowhere because we like the drive and we like what the loads pay. We no longer worry about how much the fuel is going to cost to get out of that area as we receive enough on the load to begin with to help get us back to civilization and with the FSC on every authorized mile we do fine.
We also are able to take the discounted load now as they pay enough to run them mostly due to the FSC on every mile. Covering the loads for our core customers helps FCC and us keep moving and being profitable.
As far as I am concerned I do not care what FCC does or does not charge a customer I am only concerned that we continue to see the bottom line improve for us. We never doubt when we see what a load will pay and the miles that we will receive exactly what is shown on the offer and also what we will get for pay to our layover which sometimes can be 500 miles or more away in the west. We know that our Express Centers are busier then than say Seattle, Portland, or Spokane so we can make the choice to sit a little bit and see if something comes in or be paid to get back to Sacramento or Reno.
As far as I am concerned the new way of paying FSC has done nothing but helps our bottom line in the long run and allows us to drive in the type of areas we like best.
Well, I've spent time sitting in dispatch and I've seen loads that might have a huge fsc like you say but along with that they've got huge d/h to the shipper followed by huge d/h to a decent layover spot after delivery. I've run loads and know of plenty of loads that had as much d/h as paid miles. The bottom line on pay was at or above the acceptable threshold so the load was taken.
Using your $1.25 example, that would dilute the fsc to 62.5cpm fsc. That's still more than the claimed 41cpm fsc but then there's that "special" company that gets the same service with only a 63cpm fsc. That amounts to .315cpm fsc overall and Fedex is still paying that 41cpm to the truck for all miles driven.
There are times it would definitely be better getting 100% fsc on a specific run and there are times the current system is definitely better. One has to choose one system or the other though and it's nice to know you are getting money for every mile you drive. Driving miles for free just tastes bad.
Using your $1.25 example, that would dilute the fsc to 62.5cpm fsc. That's still more than the claimed 41cpm fsc but then there's that "special" company that gets the same service with only a 63cpm fsc. That amounts to .315cpm fsc overall and Fedex is still paying that 41cpm to the truck for all miles driven.
There are times it would definitely be better getting 100% fsc on a specific run and there are times the current system is definitely better. One has to choose one system or the other though and it's nice to know you are getting money for every mile you drive. Driving miles for free just tastes bad.
You said the key word Leo. Choose not forced to take the what they give you. At Panther you have a choice on the FSC. You can tell me i'm going to get a FSC on my unloaded miles all you want. That is only if FedEx will okay them. By not paying me 100% of the FSC that is charged to the customer and making me have to ask if it's okay for me to move to a better area they have control. I want to be able to make my own choice's not FedEx. And to use the reason that some loads didn't have a FSC on them. So what, it all worked out in the long run when I had the choice not FedEx.
I see the bigger issue as transparency from the carrier. It has little to do with whether "it is enough" so it must be ok. If one is only getting it when they follow the carriers direction, then it really isn't any different at Panther. If you go somewhere other than where the EM is directed, then you lose that revenue.
As to Leo's post, I think there are some distinct differences in that he is running solo. In his example of DHing the same length of a run would be non existent in my world. We have never done that since I have been at Panther. I would find my own load before I would even consider it unless there was a bonus equal to the loaded miles.
As to Leo's post, I think there are some distinct differences in that he is running solo. In his example of DHing the same length of a run would be non existent in my world. We have never done that since I have been at Panther. I would find my own load before I would even consider it unless there was a bonus equal to the loaded miles.
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To us it is much easier to have our carrier pay us to move then to look up loads. That is a personal preference as I am sure Dave you find some really good paying loads for people you help out and your drivers.
Your absolutley correct. It is more of a preference. Since I am a fleet owner, I am more revenue driven than lifestyle driven.
The bigger point is that most of the time there is zero money when moving even if you are going where they've suggested you go and if there is any money at all it's enough to cover maybe 1/3 of the fuel cost. Along with that is a lot of d/h miles to the shipper that have zero money. Yes, things are different for me as a solo but I do also have 2 team trucks that I can compare to team trucks I'm privy to at other carriers. There are a lot of unpaid miles. DaveKC, you have a couple decades of experience and sources that most don't have so you can get trucks moving with less d/h than a lot of folks. That's great but I believe it alters your perception a little bit so you see things a little differently than many of us. That's not a knock or a bad thing, just how it is. The bottom line in this case is paid all miles or not paid all miles.
Panther is a good company. I wouldn't have stayed with them 3 years and wouldn't have let my teams stay an extra day longer than me if they weren't. They are not perfect. They have warts just like Fedex and all the rest. I've already found some Fedex warts. For me, they are easier to stomach than the Panther warts.
Panther is a good company. I wouldn't have stayed with them 3 years and wouldn't have let my teams stay an extra day longer than me if they weren't. They are not perfect. They have warts just like Fedex and all the rest. I've already found some Fedex warts. For me, they are easier to stomach than the Panther warts.
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I would agree with you in some respects. That is why I don't publish here on EO what I do with Panther. I think it would be misleading to someone new and have those same expectations.
You are right in that our DH miles are 9 to 14 percent depending on the truck. That is why I don't put a lot of stock in miles outside of the load.
You are right in that our DH miles are 9 to 14 percent depending on the truck. That is why I don't put a lot of stock in miles outside of the load.
Yes Dave that is ture. But we are all in this business to make money so if one customer pays a better FSC than the other one I want all of it because I pay the fuel not FedEx. That being said some at FedEx seem to think we was making enough money to pay for all the fuel. That is not ture, I wouldn't sit in St Marys Pa because FedEx said it was where they wanted me. The money that we did get helped out for the deadhead moves that owners had to pay themselfs to get their trucks to a better area to keep their trucks moving. So If I told you to sit in Miami, Fl a week you would move too. When getting 100% of the FSC it helped pay for the moves to get into a better area.
nightcreacher
Veteran Expediter
If you take a load at face value,then when your told where to layover,you may not have enough revenue from that load, but to only go where you layover option is.Before I accept a load,I know where I'm going to layover,and thats before FECC tells me,whether its a layover place that DVA would want me or one that I feel is better. No matter what,when I accept a load,it will pay me enough to go to a layover place of my choosing,dead head pay or not,and it doesnt take me but seconds to figure that out.When a load opportunity is given either by phone or Qualcom,all I need to know is whether the advance on that load will take care of the daily operation of doing that load.My trusty calculator will give me that answer in seconds.
We are similar in that we look at the load on its face value. I don't want to hear that the FSC is low because they are subsidising another or anything else. It either is profitable or it isn't. And yes, I want the 100 percent of the FSC rather than a prescribed formula from a third party that says that should be enough.
It is just a preference. Nothing to do with ripping a carrier or anything else. If the FSC or the rate is unsatisfactory, I will find my own loads and not worry about it.
It is just a preference. Nothing to do with ripping a carrier or anything else. If the FSC or the rate is unsatisfactory, I will find my own loads and not worry about it.
I agree 100% Dave. I'm glad some think it's great. But I don't, never have. Why do you think they gave everyone a so called higher percentage because people like me and Ken Jackson and others that was posting things on here. I started this post under my name and was kindly ask to stop posting on EO about the FSC program. So I ask Dreamer to deleted my account and started posting under Bruno. Good luck to everyone at FedEx Custom Critical and I hold no hard feeling agaist anyone at the home office in Green. I blame all of this on the people in Memphis.
Monty
Expert Expediter
When one works as I do, at my own direction in regards to deadheading, etc .. all I want is 100% FSC that is on that load. And at Landstar I get it. It is a part of the dispatch offer.
This goes back to that thread about which carrier "cares more" for the O/O ..... don't pee on my leg and tell me it's raining!
Make me an honest offer, and I will decide whether I accept it.
This load and location I am in today is a perfect example.
Almost $2,000, truck pay, including FSC, from Racine, Wi to Taft. Tx, (by Corpus).
Good rate, bad place to end up empty. But it was only 150 miles back up to Houston.
But wait .. along the way I was offered to pick up at the San Antonio airport and come on down to Brownsville area. An even worse loading area .... but .. it paid $2.00 a mile for the additional miles
So my $2,000 load just became $2400 .. Good deal, and I ask that no one be responsible for deadheading me anywhere, I knew this was a bad loading area when I took the load.
At the end of the day, if I have not been loaded, I will dh to Houston on my dime ..... and I will not even consider Landstar owes me a deadhead, or fuel charge to relocate.
This goes back to that thread about which carrier "cares more" for the O/O ..... don't pee on my leg and tell me it's raining!
Make me an honest offer, and I will decide whether I accept it.
This load and location I am in today is a perfect example.
Almost $2,000, truck pay, including FSC, from Racine, Wi to Taft. Tx, (by Corpus).
Good rate, bad place to end up empty. But it was only 150 miles back up to Houston.
But wait .. along the way I was offered to pick up at the San Antonio airport and come on down to Brownsville area. An even worse loading area .... but .. it paid $2.00 a mile for the additional miles
So my $2,000 load just became $2400 .. Good deal, and I ask that no one be responsible for deadheading me anywhere, I knew this was a bad loading area when I took the load.
At the end of the day, if I have not been loaded, I will dh to Houston on my dime ..... and I will not even consider Landstar owes me a deadhead, or fuel charge to relocate.
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Great Post
I'm Glad we get 100% of the FSC at Panther too. People that sign on now get the new FSC program.