CPM for fuel this year?

Big John is right on and I think points out why many "think" they are doing better than they are. Gross - Expenses = Net. Many can tell you all sorts of other numbers, that you need to know, but can't tell you their net.

It is amazing how many O/O leased to someone don't know this and are making less than company drivers.

 

GROSS is revenue to the truck. Maybe you do this when trying to compare one companies rate to another. But FSC is revenue just like fuel is an expense.

 

With you way of thinking I do hope you learn to swim before you go under.

 

Are you kidding?!? How do you figure your net income? Is there some secrect trucker formula that has you removing certain revenue and expenses?

 

Big John, it is hard for some people to understand this because the "settlement" they get from the company gives this as a comparision. And if the company keeps up with FSC then it is a nice feel good. Many leased drivers do not have a full understanding of how to figure profit/loss from scratch. The company or account provides all this information.

 

By law and the IRS, he is correct.

My 1099 includes the FSC as Gross revenue to the driver.

But when calculating the actual freight rate, it should not be in the computation since it fluctuates.

 

When you are creating a contract then FSC is important. But when you are looking at rates it should only be about Gross rate per mile compared to your expenses per mile. If my per mile expense increases by $.05/mile then my min rate per mile increases the same.

 

Yes and no.

When I review the load, I do not consider the FSC. It is not relevant to the cost of the load.

The FSC is something that should only be used to see if the additional fuel costs are being met by the amount.

 

So if I am hearing you. You are using it to figure "projected" fuel costs for the load. This might be helpful if I wasn't keeping an updated CPM. But because FSC is caluculated on historical data as is my CPM then I have basically the same thing but more relevant to my operation and location. Always hated natational FSC when I was running half my miles in CA.

 

Yes and no again....

This all depends on who you deal with. Some brokers put it all in. So if you want 2 dollars per mile plus a .50 a mile surcharge you figure your rate at 2.50 a mile.

The one logistic company me and 07 deal with add the surcharge separate so we just put in a linehaul rate.

Most brokers add the surcharge to the linehaul so they don't have to mess with anything.