Fuel surcharge

The carriers make a contract with the shipper that may or may not include a fuel surcharge, per what RickG stated. They collect what their contract allows them to. Then they pay you. You are entitled to what you are contractually due. No more, no less. If its percentage or cpm plus FSC... that's just a way of fixing what your renumeration is.

Yup... there's a delta in there. If there wasn't, the carrier would be out of business. So this entire argument of whether you got your 100% FSC really is bogus as all get out. It really doesn't matter what pot the money came out of - that little differentation is what employs accountants - because they get their cut too. You get what you're owed.

What is being whined about here is really whether the carrier is living up to its contractual agreement. What does "100% FSC" mean? It could mean that they pass along any money they receive in the pot called "FSC." It could mean that whatever they calculate "FSC" to be in your contract is passed along completely - separate from what they collect. Go read your contract - or did you ever bother? In reality it's what the carrier says it is - because they control the money - unless you want an attorney to get involved. And they get their slice too - don't forget it comes out of your slice.

If you're being paid on a "CPM" basis, all you have is their good word that its right. If you're being paid on a percentage basis, you can demand to see the original freight bills. If you're jealous that your neighbor who works for a different carrier is making more than you are, it sounds like a personal problem to me. Get over it, or change carriers.

 

The weekly Federal avearge national fuel price creates the amount of the fuel surcharge which is paid per linehaul mile, but it is broken down to different rates for truckload, and lower weights for LTL shipments.

 

If I remember correctly it breaks down even more for different parts of the country north east fuel is a lot more expensive.

 

FSC calculations can be made on a different set of assumptions from what the Feds suggest. It depends on what is in the contracts...

 

Pony...Why do you have to get snippy???? He came on here asking for opinions and advice. It's not a personal problem, it's a difference of a lot of money and he wants to know why, as well I would and I'm sure you would to.

 

No matter how he said it , Iron Pony gave the best info here . Contractors with a contract paying percentage have a legal right to see the bills.
As far as the rate published by the Feds goes , as stated it's an average and varies by carrier . I knew a hotshotter that used it as a sales tool . With better mpg with his Class 4 truck he could offer a lower FSC using the same formula used by Class 8 owners.

 

my new FSC breaks down to about 815 bucks on a 1500 mile load on top of my rate for say a run from yuma to say nebraska..... But alot varies on mpg of the load weight and where im running...more mountains and heavier load calls for higher FSC...flat landing it and Less FSC... Thats how i do it..

 

Fair disclosure... checkout the avatar!

 

I have hauled loads for mercer where the fuel surcharge was almost as much as the frieght rate I do not think you have to worry about mercer cheating you they are straight up.