So, I'm curious...if a company looking for O/Os is advertising a certain percentage rate + fuel, or fsc, then how does that work? If they are taking brokered loads, which is pretty much an all-in rate to the carrier, are they going to pay you the O/O just the %, or are they going to add whatever the fsc rate is at that time that they happen to go by, to your settlement?
If it's a customer load, then it would make complete sense, since I think by contract, most of them are a base rate plus a fsc. But for brokered loads, not so sure that the company normally pays their O/O a fsc.
Hope this question is pretty straight forward.
Thanks,
BW
% plus fuel
Discussion in 'Ask An Owner Operator' started by BoyWander, Oct 23, 2016.
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They may have their own loads. Not brokered.
If it says % plus FSC. Guess that is what they pay. -
It's really all over the board.
What should happen is they pay a percentage of the load and pass fsc through to the o/o. If the rate is all in they should have a fsc table and back out fuel from the base and pay the oo accordingly. That's how the law is written.
What typically happens is that they pay a percentage of the total load.BoyWander Thanks this. -
Works like this. If you get 75% plus a 10% fsc and a load pays a flat or all in 1000.00 you get 100fsc. That leaves 900 then you get 75% of that which would be 675. For a total of 775 makes you an extra 25 over 75% on a 1000. It's easy to break fsc out of a load even if it does not have it "added". As an O/O a higher fsc is better as you get a 100% of it.
BoyWander Thanks this. -
With most companies out here taking a percentage of the load and allowing you to run their authority and book from brokers you will get ZERO fuel surcharge. You will get a flat percentage of whatever you negotiate from the brokers. If you can find the rare companies who do pay a surcharge off booked brokered freight before taking a cut from what's left that is a plus. I remember when Farm2Fleet started taking 20% off the top with zero surcharge plus they charge back for cargo and liability. What a terrible deal that is. It wasn't like that before they got greedy and spendy. They floated some trial bloom out when Max Trans took over the reins from their mismanagement about quick pay of 76% within 2 days of turning in paperwork and still not paying any surcharge.
redoctober83 Thanks this. -
Brokered loads have fuel surcharge on them. Just brokers try to skim them for themselves. More and more carriers are taking a % of the fuel also. Right now the fdc is low so the carrier doesn't make too much off of it but when it spikes up to the 25% area the carrier does well peeling the % off the top of that too.
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The carrier I'm with breaks out accessorials from the rate and gives me 100% of that and then takes their 18% from the rest on broker loads. Customer freight all comes from whatever the customer is billed like normal.
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