Fuel surcharge ?

Discussion in 'Ask An Owner Operator' started by DONDAMIAN, Oct 30, 2013.

  1. DONDAMIAN

    DONDAMIAN Light Load Member

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    Feb 25, 2013
    nj
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    Well here's the deal. I bought a truck from my friend back in may and the agreement was 10%
    Commission on the loads and freaking $1000 insurance a month. Now I just found out landstar
    Doesn't take money out of the fuel surcharge and it goes all to the owner of the truck
    And he is been getting 10% of the total of what the load pays
    He often gets me landstar loads as well as others
    Please someone explain to me fuel surcharge exactly how it should be on my case and how should I proceed now
     
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  3. tirednaz

    tirednaz Heavy Load Member

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    Oct 4, 2011
    Arizona
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    If you are paying for the fuel you should be getting the fuel surcharge 100%
     
  4. snowwy

    snowwy Road Train Member

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    fuel surcharge is 100 % to truck. around 50 cents per mile or whatever the rate may be. and comes out of the rate before anything else.

    landstar takes a cut AFTER the fuel surcharge. your buddy would take 10 % of whats left.

    that's how it works with us, anyways. but with no buddy involved.

    and we're paying 1/3 of what your paying for insurance.

    so if the load was $1000. miles were 500. X $.50 would be $250.

    $1000 - $250 fuel surchage leaves $750 LINEHAUL. landstar would take $187.50 of the $750. leaves you with a linehaul of $562.50 + $250 fuel surcharge.

    that's with 25%. if landstar takes that much.

    $812.50 to the truck.

    do you actually see the load confirmations? rate sheets? and actually pick the loads????
     
  5. windsmith

    windsmith Road Train Member

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    90% of the load is what you're getting? Regardless of whether or not he keeps 10% of the LS fuel surcharge, you're getting a good deal running under his authority. Don't sweat it. $1K/month for insurance isn't out of line either, IMO.

    I gather that you're not a Landstar BCO. If that's the case, then the Landstar agent's rate is all-in, and there is no FSC - even if they list it on the rate confirmation as such.

    When I negotiate rates with brokers, they give me an all inclusive rate. When they generate a rate confirmation, sometimes they list a 'linehaul' rate and a 'fuel surcharge', which when added together equal our negotiated rate amount. It's my understanding that they issue the rate confirmation that way for internal bookkeeping purposes. As far as I'm concerned, it's all rolled into a single rate.
     
  6. DONDAMIAN

    DONDAMIAN Light Load Member

    54
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    Feb 25, 2013
    nj
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    Yeah I know I know I'm getting ripped off with this f****** insurance and even though I'm getting load confirmation for every load I'm just not happy I think my next move its gonna be going to land star directly
    it just pisses me off knowing that all this time ( since may ) he's been keeping money that was supposed to be going to my pocket
    Come on 1000 a month insurance I'm driving too much for too little profit
    Hell be sorry he did it instead of keeping it honest he will loose this idiot
     
  7. DONDAMIAN

    DONDAMIAN Light Load Member

    54
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    Feb 25, 2013
    nj
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    As the other guy mentioned he's paying a third of what I pay on insurance
     
  8. 062

    062 Road Train Member

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    Oct 20, 2013
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    Did you not read you're lease is it 90% of gross,or is it 90% of linehaul plus surcharge?
     
  9. TruckerPete1990

    TruckerPete1990 Road Train Member

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    Bentonville Arkansas
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    Sounds like he taking 10% of the load pay which he's doing the work and taking time to do the load booking. He's not gonna do it for free. Long as he's not taking the surcharge
     
  10. windsmith

    windsmith Road Train Member

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    The 'other guy' is snowwy. If you read some of his other posts, you'll quickly discover that the information that he provides is rarely accurate.
     
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  11. Clasix1055

    Clasix1055 Even when I'm wrong I'm right

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    Jan 26, 2012
    Toledo, Ohio
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    Not that I am a fan of snowy...and I have nothing against him...but he is 100% correct on the linehaul fuel breakdown and he is also 100% correct that $1000 a month for insurance is insane...

    ......but I guess you would have to actually own a truck to realize that...but you are correct in stating that not all brokers breakdown FSC and linehaul and the op would need to check the terms of his contract to make sure its 10% of the gross or 10% of linehaul + 100% FSC in the wording seems minor but makes a major difference...in that case the "owner" would be required to breakout a FSC as snowwy explained on every load because most brokers give you a flat rate
     
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