FSC doesn't matter....or does it???

And with that reasoning he would only get a percentage of those charges.

 

A spot rate includes any increased cost's(fuel for one) The truck should recieve 100% of that,not a percentage. If a FSC is not defined then there should be a "company"FSC applied to the load. If i told one of my O/O's that they were just getting a % of the gross on a spot rate they would laugh. The same for paying any carrier cost,(ins,ect)waiting for more than a day to get payed after turning in paperwork,or any other "great"deal. And i do pay a true 87% on linehaul and 100% on anything else. If that means breaking down a spot rate to get to those numbers,while that is a carriers job.

 

I believe we're talking "apples and oranges" here - based on him taking "contracted freight" from his carrier - versus - him taking "spot freight" from a broker.

If his lease contract (or the load from his Carrier) calls for whatever the "prevailing rate" of FSC is on loads obtained from the CARRIERS LOADS - than the carrier passes that onto him 100% (not at whatever % the carrier pays of line haul - LS being the "for example" here). You can't expect the Carrier to "passthrough" an FSC (out of their own pocket) on a load they didn't negotiate/contract.

If he's "negotiating an outside load" from a broker (i.e. outside his carriers book of freight) then I find it likely that the carrier is going to "pass along" whatever percentage of the "outside load" is agreed upon in his contract - as a FLAT RATE LOAD (whether or not FSC is stated in the load itself).

The point being - for the OP - when negotiating the rate for the "outside brokered load" - FSC is a "moot point" - you are going for bottom line FLATE RATE.

I think we're saying the same thing here Chris, but just misunderstanding what we're trying to say to EACH OTHER...

Even if HE sought out and negotiated the load/rate?

So, by what you're saying the post on top of this one is - that if I get the broker to pay me $1.50 a mile PLUS $.50 FSC - that you would pay me 87% of the $1.50 and $100% of the $.50? In that case - how do your protect YOURSELF, from a driver getting a broker to do a rate conf WITH FSC broken out - so that you (the carrier) would be denied your 13% of, what in reality is a $2.00 per mile flat rate load?

Rick

 

The carrier should break down the spot rate into linehaul and FSC. Any way you look at it, it is their load,not his.

 

Deleted and condensed into previous post...

 

Most carriers have a "standard" FSC that they use. Customers have varying FSC. Last week our FSC was .48,our customers ranged from .41 to .54. We use our standard across all loads,whether contract or spot rate. We also keep track of the total FSC collected and adjust our base up or down each quarter to distribute or collect the difference. That is on top of any weekly changes.

Your last example was correct,in a way.

 

Sent you a PM - don't want to hijack this guys thread...

Rick

 

If the fsc is left in the rate and the fsc is $0.40, then the owner operator would lose $0.10 if the carrier took 25%. If the linehaul rate was sufficiently high enough then it would make little difference in the owner operators money. If the owner operator is running for cheap rates, then it could mean the difference between making a profit and losing money. If I leased to a carrier where rates were that low then I would find another carrier. Most carriers offer fuel discounts when you use their fuel card. That can also offset fuel costs.

 

So that lousy .10 per mile at 100,000 miles a year mean nothing? An extra 10,000.00 might come in handy now and then.

 

It's already been pretty well toasted and then burnt.....