Farm2Fleet/Covenant Fleet - O/O's

First, there is NO set industry FSC. It is based on a formula that the carrier or the customer sets with the variable being some fuel index, TYPICALLY. I know a company that used all FSC billed last week divided by total miles to come up with fsc.

And FSC is one of those games that carriers play to get people to think they are getting a better deal. At the end of the day what matters is what is being paid to the truck and if you are running contract freight that you have an FSC. Only reason a higher than normal FSC should come into play is if you are running freight that will get you a lower MPG - open deck, heavy haul, city driving, etc.

Now, to what you are asking. First, a lot has changed since the initial posts and you can't go back and edit these so I understand your confusion. You are combining programs and talking about one that no longer exists.

At F2F we have two options: The percentage that has been around since the beginning and that is 80% plus 100% of contract freight FSC. This can be complete self-dispatch or we can help.

Because we have good drivers that aren't ready for self-dispatch and want to come over and just run we are working with a customer now that we will be able to offer consistent miles (2700-3000 solo/5000 - 6000 team) on a mileage program ($1.15/mile solo - $1.20/mile team). Pay is on all miles and FSC on loaded.

 

You have to be going on 3-year by now.

 

FSC is designed to protect a carrier/driver on contract freight. No one can tell you what the price of fuel is going to be in December. So if you accept dedicated freight or mileage pay from a carrier you need to make sure that you have a fsc to level the pay based on the cost of fuel.

The "game" as it it is played is those companies we have all seen that advertise "the highest FSC in the industry". A business person should say "who cares, what is the pay to the truck?". It is the same when people are talking percentage. I higher percentage isn't better or worse. It still depends on what is being paid to the truck.

FSC is irrelevant in the spot market. The bid should be placed on what you need TODAY.

We don't pay out on the FSC for spot market because we let our drivers negotiate the freight on their own. Early on we had a driver negotiate a load and rather than get more money on the load they asked to increase the FSC beyond what is normal (it worked out to be over $1/mile on FSC). What we do seems to work and so far I have some happy drivers that are making some good money. We are always looking to get better and when we need to make adjustments based on changing market conditions we will.

 

So for pure marketing purposes I should create an FSC and lower my percentage? If the truck needs to make a $1 what is the difference if they make by adding a percentage plus FSC or just take a percentage? At the end of the day a $1 is a dollar regardless of how they got there.

This is a lot like the conversations I have with drivers that are mileage pay or have a lower percentage pay. They tell me their numbers and I am looking at my drivers settlements AFTER expenses. They can't get past the FSC thing but I am looking at my drivers netting near and better than what they are grossing.