Fuel surcharge; is it worth it?

Discussion in 'Ask An Owner Operator' started by Combat_Freight, Apr 16, 2017.

  1. Combat_Freight

    Combat_Freight Bobtail Member

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    I'm a new owner operator contemplating a few companies. Two that stand out offer some differences. One says 80% of the load, I pay bobtail and $115 a week for cargo insurance ($460 a month), they pay fuel tax and apportioned plates. Another says; 70% of the load and 90% of the fuel surcharge. I pay for my own plates and pay occupation/bobtail/liability through them which comes out to about $230 a month taken out of different settlements. Is the 90% surcharge even a deciding factor? Both jobs are simi-regional so the miles will be pretty even. Any advice?
     
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  3. Steel Tiger

    Steel Tiger Road Train Member

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    Why wouldn't you get 100% of fuel surcharge? That's to offset your fuel expense, not to put an extra 10% on that company's profit. Anyone that wants to keep any amount that is due a driver is someone to stay away from.
     
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  4. Steel Tiger

    Steel Tiger Road Train Member

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    Now, I may be incorrect in this statement, but I believe that there is no rule for how much surcharge a driver gets, but there are industry standards....that is, a practice that most reputable carriers follow.

    1. Fuel surcharge pay is pissed on to the driver at 100%.
    2. Most companies start at a base of around $1.24 - $1.29
    3. There is an increase in surcharge paid of 1¢ for every 5¢ - 7¢ increase of the national average.
    4. Most calculate at approx 6 MPG

    A smart driver can profit off of fuel surcharge when national average for diesel is high, say $3.80+/gallon, provided that they get great fuel economy and buy at way under national average.

    Most drivers that are paid on a mileage base system have probably seen a decrease in their profits over the last couple of years, whereas their base pay and benefits have remained constant, but fuel prices dropped and so did surcharge amounts.

    So if you can average 7+ MPG and find fuel for 10% below the national average, the fuel surcharge week pay for a good chunk of your fuel costs for that trip.

    That's why I wish fuel would go back to $4/gallon. I can pocket some of that surcharge instead of just covering 50% of my fuel purchases.

    It's a big difference buying at 10% below national average when it's $4/gallon vs $2.50/gallon. It's s of 40¢ savings vs 25¢.
     
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  5. TruckerPete1990

    TruckerPete1990 Road Train Member

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    you should be getting 100% not 90%....
     
  6. Combat_Freight

    Combat_Freight Bobtail Member

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    I agree but what I'm getting at is, One company: 80% load pay 0% fuel surcharge (dry van). Another company: 70% load pay, 90% fuel surcharge (refer runs)..
     
  7. TruckerPete1990

    TruckerPete1990 Road Train Member

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    So then find another company lol 0% fuel surcharge really??? is so called Company also charging u a rental on that Refer unit?
     
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  8. Steel Tiger

    Steel Tiger Road Train Member

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    In that case, NEITHER.
     
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  9. Tug Toy

    Tug Toy Road Train Member

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    None of that means anything if you don't have the rest of the rate. The one without fuel may be $4 mile gross the one with fuel could be .95 cents.
     
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  10. Combat_Freight

    Combat_Freight Bobtail Member

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    No, the refer runs are with the surcharge. The dry van is the 80% load pay and no surcharge...
     
  11. 062

    062 Road Train Member

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    Need to now if the surcharge is on all loads or only direct customer loads. Some broker only have a all in number on the rate,some will break it down with a surcharge on the rate con. So you have some questions to ask.
     
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