Structured Fuel Surcharge

Slacktide

Seasoned Expediter
Thanks Moot.

My comment was more to point out that the reply given to Phil's question missed the mark. I think we all know what the intent of Phil's question was. IMO it was to broaden the discussion to include a discription/definition of a structured fuel surcharge for "noobs" that may be lurking or afraid to jump in and ask. I do not believe he asked due to a lack of knowledge on his part, making Dave's response foolish and condecending.

As this thread has continued a good bit of usefull information has been provided for those that may not have had a solid grasp on how FSC work.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Thanks Moot.

My comment was more to point out that the reply given to Phil's question missed the mark. I think we all know what the intent of Phil's question was. IMO it was to broaden the discussion to include a discription/definition of a structured fuel surcharge for "noobs" that may be lurking or afraid to jump in and ask. I do not believe he asked due to a lack of knowledge on his part, making Dave's response foolish and condecending.

As this thread has continued a good bit of usefull information has been provided for those that may not have had a solid grasp on how FSC work.

Don't make something into something it is not. He did not indicate his question was for anyone else other than himself. My response was directly to his question. And no, no one knows what his "intent" was other than him. Just go by what is written and not try to "ASSUME" what you think someone is thinking or saying.
 

LDB

Veteran Expediter
Retired Expediter
Carriers are meant to be profit makers and they should be, from the freight being transported, not from ripping off their contractors. If you believe it's fine for the carrier to double the price of the QC then you should also be fine with a dime or so fsc or maybe no fsc at all.

As far as fsc itself, I'm sure the $35 QC crowd thinks it's fine to base the fsc on $7 fuel even though it's currently $4.
 

Monty

Expert Expediter
Have I mentioned recently that I love Landstar!

Some accounts, like the load I'm on now, have smaller FSC's than regular. But I'm still getting .37 FSC ... payabe at 100%.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Unless Panther has changed the formula...
$ National Avg - $1.25, Divided by 11 MPG for a cargo van.

$3.96 - $1.25 = $2.71
$2.71 divided by 11 = 24.6 cents.


Top of the EO page shows National Average to be $3.94. In that case, $3.94 - $1.25 = 2.69 / 11 = 24.4 cents.

I thought it was 15 mpg for a Cv and .11 for a straight....hmmmm
 

Turtle

Administrator
Staff member
Retired Expediter
Straight is 9, I think. Someone from Panther could go to the Panther web site and see what the numbers are for this week. Once you know the fsc for each vehicle, the math is easy to figure out the mpg.
 

chefdennis

Veteran Expediter
I don't know what mileage they use to figure it, and i really don't care one way or the other..but my numbers for so far this month and average of $.32 all miles and $.37 loaded miles.....just sayin....
 

ATeam

Senior Member
Retired Expediter
Thanks Moot.

My comment was more to point out that the reply given to Phil's question missed the mark. I think we all know what the intent of Phil's question was. IMO it was to broaden the discussion to include a discription/definition of a structured fuel surcharge for "noobs" that may be lurking or afraid to jump in and ask. I do not believe he asked due to a lack of knowledge on his part, making Dave's response foolish and condecending.

As this thread has continued a good bit of usefull information has been provided for those that may not have had a solid grasp on how FSC work.

My intent was a little bit of both. Yes, I wanted to broaden the discussion, but I also wanted to broaden my own knowledge. I have never heard the term "structured fuel surcharge" before. I wondered, is there also something called an unstructured fuel surcharge, and if so, how does it differ from a structured one? Thus my question.

While I know the basics of a fuel surcharge, I asked for an explaination of structured fuel surcharge because I had no idea what the term meant.

Do not give me more credit than I deserve. Sometimes I pretend to be ignorant and sometimes I really am.
 

greg334

Veteran Expediter
Have I mentioned recently that I love Landstar!

Ditto

I don't get the issue, if one operates under the assumption that there is a cost affiliated with running the van, then it isn't a problem when they give you X for the FSC. I don't think that it is an issue with me any more, I am looking at the bottom line, not the breakout of each segment of the load offer.
 

chefdennis

Veteran Expediter
I don't look at each part of the amount paid to the van..i had to figure those numbers because i didn't know what they were...all i care about is the total amount..how they get there really doesn't matter...and each run while it has to be profitable, I don't look at the weeks amount , its the net at the end of the month and more realistically the quarter that i concern myself with....but i also know that their are people out here that can not do that and need to know where they are at the end of each week or even in the middle of the week....
 

Moot

Veteran Expediter
Owner/Operator
I have never heard the term "structured fuel surcharge" before.

Like I explained earlier in this thread, its Panther Speak™

Do not give me more credit than I deserve. Sometimes I pretend to be ignorant and sometimes I really am.

Next time you're not pretending to be ignorant go to Seville and sign a contract. I quit pretending a long time ago.


The key to being successful at Panther is learning their system and their rules, because that's what they go by. Learn to make their system and rules work (hereafter known collectively as "stupidity") for you, instead of you working for them. They do things that will seem, and are... stupid. Embrace the stupidity. Learn the stupidity. Be the stupidity. Once you are One with the stupidity you can use their own stupidity against them to your advantage. If you can do that, you will be successful. If you cannot do that, if you fight the stupidity, you will not succeed and you will have mostly negative things to say about Panther.
 

fastrod

Expert Expediter
The initial purpose of a fuel surcharge was to help offset erratic spikes in fuel prices. A carrier could institute a f.s.c. rather than constantly changing their published tariffs. Today it seems many carriers are using the fuel surcharge not only to offset the price of fuel but as a profit enhancer.

$1.25/gallon for diesel fuel is a common baseline price that a typical f.s.c. will bring the national average price down to. This week the national average for diesel fuel is $3.96/gal. and $3.59 for regular gasoline. I run a gasoline powered van that averages over 16 mpg. My f.s.c. is based on the price of diesel and I believe 12 mpg. If I were paying the national average of 3.59/gal. for gas, my actual price per mile would be about .22, so the f.s.c. is paying for all my loaded miles with a few cents extra.

My formula is a little different. I use a base of $1.30 a gallon and add 1% for every 10 cent increase. $3.60 a gallon is 23% times my base rate comes out to 43 cents per mile. This applies to the miles I bill the shipper, I do a run and bill the shipper for 500 miles the fsc is $215.00 for that run.
 
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