It's a ripoff because if they charge and collect money specifically to offset the cost of fuel, and then fail to pass that money onto whoever is paying for the fuel, it's akin to fraud, and is outright theft.
it's not a ripoff , shipper still getting good deal to move freight ,they do - or they will go somewhere else . its 2 fruit in a fruit salad .
Smart's got nothing to do with it. Either you have a vehicle that costs you less to operate than the FSC pays, or you don't. I happen to have a Sprinter which usually costs less in fuel than the FSC I get paid. That doesn't make me smart, it makes me lucky.
actually ,smart have lots to do with fuelmaillage ,just ask Bob Caffee .(better yet,ask Linda,as Bob will never say that on himself) i'm actually pretty dumb (please do not quote that ),but i was wise just enough to buy a truck from a smart guy hoe build trucks that can get 50% better fuel economy
If brokers and carriers are making money off the FSC, they're not smart, they're corrupt.
Well, except for maybe that corrupt part.
still see nothing wrong with that . can't see how corroption play a part in making money off of the FSC .
Correct.
It's because the average price of fuel varies by state and region, versus the national average. Truckload carriers that operate or haul point-to-point within a certain region will tend to use that region's average.
that's a very narrow way to look on a state by state FSC .
why would i expect the carrier to 'avarage up a load' and not the FSC ? ,actually ,it's a mute point .
Depends on who's hauling it. Most TL and LTL carriers will haul freight based on weight and/or dimensions, and will quote rates as such, and will then add a predetermined percentage based on the price of fuel to the line haul for the FSC.
that might be the case ,
Not really. Only the actual amount of the FSC would be unknown for future shipments, because it would be based on the national or regional price of fuel at the time of the future shipment. But since most carriers charge either a straight percentage of the line haul for the FSC, or they use a formula to calculate it based on the price of fuel, it's a figure that both shipper and carriers can easily determine at the time of booking the load.
excellent explanations ,
i think that i was talking about the time the contractor sign on with a carrier on a base rate + FSC contract
It is. The industry standard is for the FSC to be figured to bring the price of fuel, for the persona paying for it, down to $1.25 a gallon (some carriers use up to $1.45 a gallon, they know who they are and I don't need to mention them, but they are the personification of evil). There is an industry standard MPG figure for each type of truck, but that actually varies a mile per gallon here or there among carriers. But at Panther, for example, cargo vans use 11 MPG as the average, and the FSC is figured on the national average for diesel. Currently, the
Weekly On-Highway Retail Diesel Prices is $3.17. So $3.17 minus $1.25 gives $1.92, divided by the 11 MPG and the structured FSC at Panther for cargo vans this week is 17 cents. Straight and big truck MPG figures are like 8 and 5, or something like that, I can't remember. But one-time shipments are calculated precisely in that manner, as are some long-term contracts. Other contracts are based on either straight percentages of the line haul, as well as other factors for some customers, like time of day, pickup or destination regions, lots of things. Fortunately, it's all computerized in those cases.
Talk about being simple. Why are you introducing a broker between shippers and carriers who have long term contracts with each other?
shippers ,many time do not even know hoe the carriers are ,they have long term contract with freight brokerage firms ,and 3PL services provider .
No, 'cause it's pretty simple. It's figured on line haul, or multiple line hauls as in your example. If it's going 3000 miles and 2000 of that is by plane and the other 1000 is surface, then the 2000 plane line haul gets figured it's rate and FSC, and then the surface miles gets figured, then it's all added up and presented to the customer. My carrier does a lot of door-to-door air expedite, for example, where a surface vehicle picks something up and expedites it to a local airport, air expedite takes it to where it's going, and then surface expdite picks it up at the destination airport and then delivers it to the consignee. Both surface line hauls are figured, including the FSC, and then the air line haul, including the FSC is figured, and it's presented to the customer. Simple.
w truck O/O ,as he was the one paying the fuel for that leg of the
6 weeks ago ,a Panther truck boost the turbo up the stack ,in the middle of nowhere I-80 Nevada ,220 mil. from the 'undisclosed Gov. location' , it was towed the rest of the way .
i do not think the 'DOD load provider' ,gut an explanation ,of how mach of the FSC he paid went to the tow truck O/O ,as he was the one paying the fuel for that leg of the trip.
In the short term, for one or a very small number of trucks, maybe, but in the long term and on the large scale, it's the large carriers who can do dollar cost averaging to better control their costs. They can take a hit on one area and keep on rolling, where the same hit for an O/O can put them out of business.
w truck O/O ,as he was the one paying the fuel for that leg of the
And yet the opposite is actually true, especially when we have so many O/O who will say they don't care what the customer is charged for the FSC, as long as they get enough to let them run the load, they don't care. Our industry is very efficient in passing on excessive fuel costs to large carriers, but to owner/operators, not so much. Large, asset-based carriers keep 100% of the FSC and it gets added directly to the bottom line. Many owner/operators are at the mercy of their carriers to collect and pass it on. And the owner/operators who think it's none of their business what the carrier is charging the customer for the FSC, they are at the bottom of the least efficient passing-on of the excessive fuel costs.
well, maybe so ,4.50$/G was a very good experience for me ,so i might be blindfolded ,i'd go back to it in a hartbit , i'm sure as hell happy i was not an IC at the time.
(or, what Dave just said
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