It's not looking good........

I have no problem with FSC,it helps ease the cost.
I just worry when people depend on it to make a profit.
Rates are lower and O/O's are running on the cheap which gives the Mega sharks more reason to put the squeeze on.

 

Not sure how you see the FSC as a scam unless you are the one buying the fuel but not getting the FSC,I understand it is not as useful to someone hauling on the spot market but for the ones who have a long term contract in place it is very important. Granted , what we are currently getting for the all in rate is down some. But when the fuel prices were going up like crazy it was nice to have the rate come up with the fuel. If it had not been in place the last time fuel was cheap, everyone would have been crying because the cost of fuel was going up. At least with a FSC you know that the line haul will stay pretty much the same and depending on your mpg when fuel goes up you could make a little more or possibly loose a little more. I always looked at that as gravy. I would not do a long term contract without having a FSC agreement in place.

 

Without fsc in contracts, no carrier would ever bid a contract for longer than a week. It would be playing Russian roulette hoping nothing in the world happens to drive fuel prices high.

 

Unfortunately too few shippers and trucks fail to realize "nothing is getting cheaper". Even though fuel may go down not much of anything else goes back down with it. Now I will 100% contradict myself. I just found one rare instance where an item followed fuel albeit way after the fuel went down. The item is tires. If you need some you should price them and keep an eye on them. Tires I bought 2 years ago are now $80 each less money.

 

Rates have only been down 10 cpm for me. But fuel consumption is down 20cpm.

 

http://www.dailybreeze.com/business/20151029/more-truckers-join-in-strike-at-ports-of-la-long-beach


This hasn't helped. Long shoreman on strike west coast, down in TX and east coast

 

Solution is extremely simple, you bid a tiered bass rate schedule that adjusts to the national average on fuel pieces.

There is ZERO need for a separate FSC charge, it's just a poor way to do business.

Not rocket science and covers you against operating cost fluctuation.

 

Okay, you do it your way, I'll stick with the FSC.

 

Isn't that essentially the same thing as FSC?