Picking my own freight baby! My journey to & of being on Schneider choice, the Adventure & Numbers!

We don't get 65% plus fsc we get what's posted as the rate with fsc included.

Schneider Logistics is the shippers customer. Schneider Logistics is Schneider Nationals customer.

 

Well yes..but all carriers have a logistics who broker it to their own co's....even roehl...just a fact of life in this business...may not be illegal but i think its unethical practice..same goes for the brokers like ch robinson...

 

You're prob right. I'm sure they're all doing it. Being I'm paid mileage though, has no affect on my rate. Only thing that affects my rate is distance

 

I get what you are saying but landstar is a bad example and doesn't fit. Their agents get a set percentage of the linehaul(8 percent if i remember right), just like the boss. Landstar gets the rest. No way would landstar allow an agent to broker a load to themselves before putting it on a truck. That would mean landstar was also being cheated by the agent. No way is the head honchos going to allow that.

Say a load pays 1000 linehaul, plus fsc. 65% goes to truck so 650$. 8 percent goes to agent so 80$. Landstar gets the remaining 27% so 270$. If an agent room that same load and brokered it to themselves for 800. 65% truck pay is 520$. Landstars 27% would be $216. Short 54 dollars. While the agent gets 64 plus the 200 of the top for a total of 264. No way is landstar going to turn a blind eye to this. Agents are almost like sales employees, this boss just isn't going to let the sales guy make more at his expense. Get caught and you no longer have a job.

 

By brokering it to themselves it protect SNI from showing what the shipper pays because Schneider Logistics is Schneider Nationals customer not the shipper.

It's a layer of protection.

 

That is correct. I have seen Schneider loads posting for double or more on the various load boards. It's frustrating to see crud like that, but that's the nature of this industry as of right now. It's gone back to the "good old days" where the industry was regulated and monopolized by a few carriers, and those carriers set the prices. Because they can do the volume, compared to the little guy with 1 or 2 trucks, they can earn the $.05/mile of profit off each truck while the little guy has to make 100 times more than that.

As for Prime, they pay 72% of the load plus 100% fsc. Now Prime's rates are lower on average compared to the national spot market average, but that is the spot market not contract freight market which is completely different when it comes to rates. On top of that, Prime's fuel discount program is much better than Schneiders and usually $0.20-0.30/gallon less than the NASTC program. I big part of where you make your money at Prime is at the pump and maintaining a decent fuel economy. Prime also sends out to all of the drivers on tuesday what that week's fsc is going to be along with the numbers that were used to calculate that week's fsc number. Yes driver's at Prime may get $1.50/mile on average, and there are drivers that get loads paying over $2.00/mile on long hauls, but with Prime's system the majority of the time your fsc covers your fuel cost or is within $.07/mile of completely covering your fuel cost if you keep your mpg up, that's still a very good number going to the truck. Add on top of that there fuel discount program, you can make a very nice profit each year. The drivers that follow Prime's program that lease a truck on average make $75-80,000 a year profit before taxes.

I left Prime because I didn't want to deal with a dispatcher, not because I wasn't making money or the loads sucked, it was plain and simply I didn't want to deal with a dispatcher anymore. At the time I thought I wanted to be home more often to spend time with my parents, my little brother before he goes off to college, and my two grandmothers as they are getting up there in age, but just because you have more control of your schedule, doesn't mean you can take that time off and still make your target profit for the year.

I want to go back to the spot market thing for a minute. We all see what DAT posts for the current spot market rates every wednesday morning. Those rates are going to be very different from what contract rates are going to be for carriers like Prime and Schneider that have 12 month or 24 month long contracts in place. The only thing that would increase those rates on the contracts is fsc. Since Schneider has deemed it not necessary for us to know that the weekly fsc is, there is no way to really judge how and when rates will change on Schneider's program. Contract rates will look nice and low at times or will look really amazing at times, but you'll be roughly the same amount on that load all year long vs the spot market where when the demand is high the rates go up and when demand is low and a lot of trucks are sitting around the spot market rates go down. Most freight contracts are renegotiated around April - June, that way shippers can lock in a "Low" rate for the summer and holiday rush time periods and not loose there azzes on spot market rates.

As for fsc, the only time that fsc plays into the equation is when you have contract freight. For spot market one time pull, you get a flat rate. FSC is there to help protect you when you are in a contract with a shipper and all of sudden the price or fuel doubles and you still have 8 months left in your contract. The rate you may have set at the beginning of the contract might have been an awesome rate and you were making a good profit, but without fsc in the contract, your profit goes away the moment fuel starts to climb. At Schneider, because they want to hide the fsc from the lease op's all you're really looking at is the gross revenue to the truck on each load.

 

@redoctober83 ..btw,sni does post what the fuel surcharge is on every load..you have to look at the details of the load and tap on rate info..they have it broken down there..