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Round Trip-50% on return run

R

redhotxpress

Seasoned Expediter
Do all companies only pay 50% for the 2nd half of a round trip?
This may be news to some and old hat to others but just in case You aren't familiar with this you may need to read page 62 of the 2006 PII driver manual. (I shared this w/drivers who had been around longer than us and they weren't aware...and unless its changed since last year)
We were offered a round trip load, p/u and point "A" delivering at point "B", p/u at point "B" and going back to point "A". the load was 792 mile each way (not bad), fsc only 0.13, not so great and it was reduced rate at $1.10, not too crazy about that either. that's only 0.55 cpm for return trip. according to my math, that wasn't such a great deal so we turned it down. i shared this with a friend and they thought i was crazy til i told them about the 50% return trip. we have had round trips that pay full rate both ways, but they told us up front it would pay full rate. if that isn't mentioned i would ask before accepting round trip run. like i said may be old news to many but it pays to READ THE MANUAL. ;
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
If it is round trip, make sure you get a QC message indicating it is a full rate both ways. In your case, I wouldn't have taken it. We can't turn a profit on your described scenerio.









Davekc
owner
22 years
PantherII
EO moderator
 
terryandrene

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
It's much the same with FedEx Custom Critical. If the Customer books the run and the return at the same time, and the return trip delivers within 50 miles of the first pickup, the second half of the run is processed at a 50% discount for the customer. Since we are on a percentage basis, we also receive 50% less revenue for the last half of the trip.

I'm surprised that a contractor fixed rate per mile program would include a 50% reduction of that rate.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
Exactly why I wouldn't run one of these with a reduction anywhere. Our expenses aren't 50 percent less on the second half.










Davekc
owner
22 years
PantherII
EO moderator
 
RLENT

RLENT

Veteran Expediter
It's a little different for me - I'm with a small lil' company and most of our loads originate in a specific regional area - which means I deadhead back to the home area quite a bit.

Since I have to pay the expense going back anyways finding a load that pays in both directions, even if the backhaul is only at a 50% rate, avoids the deadhead expense coming out my pocket and puts me back in the area where I will get more loads.

Our backhauls only pay the 50% rate (to within a 25 mile radius) - but it does pay the full FSC (not just 50%) for the return miles - and given the way our FSC is calculated I do well on getting my fuel costs covered ..... and then some. ;)

I'll take a trip like that in a heart beat.
 
Moot

Moot

Veteran Expediter
Owner/Operator
With Panther I have run 1 round trip load. It was booked and paid on 2 seperate pros. Each load paid the same full rate mileage and f.s.c.

With Con-Way I ran several round trips, mostly a Minneapolis to Fond du Lac, WI. Con-Way booked and paid the loads under 1 load number. All miles were regular rate with extra stop pay for the delivery/pick up in the middle.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
Moot has it right. You just have to make sure they either send it as two pro's or I usually do a flat rate for the whole trip.








Davekc
owner
22 years
PantherII
EO moderator
 
T

tec1959

Expert Expediter
When i was with Roberts Express and then Fedex i ran several return loads and we got new BOL numbers for each run and were paid full price for both runs.
 
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