Well I am new to this area of driving. My question is for someone like me that is new to expediting. The fleet I am driving for want me to sign a percentage contract. The options for me is 60/40 with FSC or 40/60 and not have to worry about fuel. Which is better for someone that is new to expediting??
New to expediting. Got a big question before i start.
- Thread starter MarioG86
- Start date
BigCat
Expert Expediter
The 60/40 + fsc can be better deal if the truck gets good fuel mileage. I always did the other and didn't pay fuel.
I have always believed that the driver should pay for fuel, because the driver is in total control of the consumption. Also, it forces the driver to consider things like fuel efficiency, DH, out of route miles, and going home, more carefully than they might otherwise. And those are all things drivers should consider carefully, IMO.
Murraycroexp
Veteran Expediter
After 9.5 years as an ops mgr with STs and Semis, company drivers NOT paying fuel waste more fuel IMHO. Out of route miles, speeding, jackrabbit starts, aggressive driving and tons of idle time even in mild temps. Most of those habits make the truck life shorter, I believe.
paullud
Veteran Expediter
You will have more control over how you do your job if you pay for fuel and getting good MPG gives you the opportunity to make more money. If they pay for fuel they can tell you where or when you will fuel which may not be in your best interest or preference.
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As others have indicated, paying for fuel on a 60/40 split can work out to your advantage if:
1. The full fuel surcharge paid by the carrier is passed through to you (fleet owner takes no cut).
2. The truck is in good repair and gets reasonably good fuel mileage.
3. The truck is equipped with a generator that works most of the time.
4. You drive with a light foot and do all you can learn how to do to conserve fuel.
Note that different carriers pay the fuel surcharge in different ways. That too is something to watch but the only way you can benefit from a good fuel surcharge policy is to find the carrier that has a good fuel surcharge policy. However, if you are in a fleet-owner's truck, that decision may be out of your hands.
1. The full fuel surcharge paid by the carrier is passed through to you (fleet owner takes no cut).
2. The truck is in good repair and gets reasonably good fuel mileage.
3. The truck is equipped with a generator that works most of the time.
4. You drive with a light foot and do all you can learn how to do to conserve fuel.
Note that different carriers pay the fuel surcharge in different ways. That too is something to watch but the only way you can benefit from a good fuel surcharge policy is to find the carrier that has a good fuel surcharge policy. However, if you are in a fleet-owner's truck, that decision may be out of your hands.
so this is a little more detail about the 60/40 contract. look like this I guess the break down of it. a. 100% of Carrier Detention Pay.
b. 100% of Carrier hand loading or unloading compensation.
c. 100% of Carrier fuel surcharge compensation for
each job (this varies with fuel prices in the market).
d. 60% of per mile Carrier compensation rate.
e. 60% Deadhead mileage.
f. 60% of Carrier paid items on Carrier Detail fleet breakdown such as minimums for adjustments due to negotiation. “adjustments to deadhead pay rate” from negotiation, and “explain in reason”.
All are terms of a change in per mile rate resulting in an increase in the revenue of the truck per mile .
b. 100% of Carrier hand loading or unloading compensation.
c. 100% of Carrier fuel surcharge compensation for
each job (this varies with fuel prices in the market).
d. 60% of per mile Carrier compensation rate.
e. 60% Deadhead mileage.
f. 60% of Carrier paid items on Carrier Detail fleet breakdown such as minimums for adjustments due to negotiation. “adjustments to deadhead pay rate” from negotiation, and “explain in reason”.
All are terms of a change in per mile rate resulting in an increase in the revenue of the truck per mile .
paullud
Veteran Expediter
As long as the ST is in good mechanical shape as Bigcat mentioned I would want the 60%. You will want to perform above average in MPG to make extra money but there is no point in doing anything if your goal is to be average.
Sent from my SCH-I535 using EO Forums mobile app
Sent from my SCH-I535 using EO Forums mobile app
That's not a problem with drivers paying for fuel, that's a problem with an owner who doesn't want to pay for what the truck needs, when it needs it. Good fleet owners are careful, not penny wise & pound foolish.
BigCat
Expert Expediter
True but even if the worst fleet owner (maint. Wise) was paying for fuel he would make sure he did what it took to get good mpg.