If you are a leased owner/operator getting paid by the mile plus a fuel surcharge you may benefit from higher prices.
If you operate as an independent with your own authority as I do most if not all your loads will be a flat rate. This way the cheaper the fuel the better your bottom line. The less you pay the better.
As an independent of course I make more when fuel is cheaper. The hauling rates now are being driven more by supply and demand and less by the price of fuel.
owner operators over the road: is the lower fuel prices helping you out
Discussion in 'Ask An Owner Operator' started by OldHasBeen, Jan 2, 2015.
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Even as an independent if you have long term contracts or you haul directly for shippers the fuel surcharge would help. If you are hauling for brokers, or spot freight not so much.
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again READ..... that was to Tommymonzy when he askedwhat I posted was how the FSC works NOT what mine is...
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Truck drivers and math is always like watching a cat climb a curtain, interesting as hell, and someone always end up butt hurt.
Badcable, DrtyDiesel and mjtrucking Thank this. -
I have done specific loads before for X amount of money but lately the rates on these loads have dropped because of the fuel prices dropping. Even though I work in the spot market, the brokers have contracts with the shippers for set rates + FSC and therefore have to lower the rate.
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There are seasonal headwinds too:
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In my home town finally gas went below $2.00, 1st time in many years its been that cheap, in some places its now $1.99. But I've been buying my gas at Texarkana just east of State Line Avenue and about two weeks ago I paid $1.84 per gallon.
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I guess back when fuel was less than a buck and fsc hadn't been invented we should have all starved to death.
DrtyDiesel Thanks this. -
I did read it, youre giving an example of at two different price levels what a fuel surcharge would be , at the end of the example you raise the fuel surcharge from .45 to 60 to show a 15 cent increase in profit, in the example of fuel charge figures you would break even at higher costs.
simply makes no sense.DrtyDiesel Thanks this.
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