RATES

Thanks,,didn't mean to hijack, just was talking to a friend on FB and the subject was brought up at that time. I just assumed the FSC was from the Gooberment to the Carrier? So, if your an O/O, why don't you get the FSC? Sorry for the ignorence and thanks again.

 

FSC is a percantage charge of freight rate that changes weekly. Higher the fuel, higher the percentage, fuel goes lower , the rate is reduced. That way as fuel costs increase, their is no need to re-negotiate the rates every week. It is paid by whomever is paying the freight bill, and is SUPPOSED to go directly to the truck.Government only issues the rate chart that is supposed to be used.

 

Gypsy, a fuel surcharge program is designed to help insulate a carrier from rapid spikes in fuel prices. Because many carriers big and small operate on razor thin margins, any upward movement of fuel would rapidly shut down such a capital intensive operation. A FSC program is not mandated by anyone, it negotiated between the carrier and purchaser of transportation services (customer). The government does publish a weekly on highway fuel price average that you can base a FSC program on, but every company can dictate their own program. Typically long term contract frieght will have a FSC in place which may change weekly and sometimes monthly (been there, sucks). The DoD (dept. of defense) has a FSC and it is the ONLY mandated by law pass through to the fuel purchaser in the nation.
Most broker loads are going to be one rate all inclusive and a FSC may be listed or not. Even the DoD broker loads will be one rate, but if asked they'll just show a FSC as part of that flat rate. Where the FSC becomes dicey is the leased O/O situation. They have to figure if their company is passing through all intended FSC or not. Passing it through is the right thing to do but it is not required under any law other than DoD. The government got out of regulating trucking in 1981 and most all business aspects following the ICC termination act of 1993 and amendment 1995. All the federal govt. does now is regulate safety. Business and contractual issues are left to civil courts to decide.
So in the end FSC and any other rate dealings are all subject to supply and demand. You'll have more leverage in the future when frieght volume picks up. Now is probably not the best time to negotiate a long term contract even with a FSC program. Wait until spring or early summer when they get desperate. According to the experts (whomever they are) we lost close to 18% of the truck capacity nationally in the last 2 years or so. They (who's they) also don't predict that capacity coming back in anytime soon. I think we are heading for a perfect storm. I know I got my list of brokers I am gonna break it off in em. If you got trucks you'll be golden. I think if you're leased to one of these 90 cpm outfits you need to look towards working on percentage or even getting your own authority if so inclined...and that is a whole other subject.

 

In '79 rates were regulated....."Juan" and "Jose" could not run in the US lest they get arrested for being illegal aliens...

You had to prove that a certain lane was needed and so on....

People wanted deregulation and got it....More trucks hit the road.....to include all the pre-NAFTA rigs.....

Like what was said before....."Supply and Demand"....

If we made getting a CDL much tougher.....

If we made getting operating authority much tougher.....If...If.....If.....

 

Well it is tougher to buy a truck today than just a couple of years ago. All the easy credit helped fuel this surplus of capacity we've seen.

 

Just like houses and the sub-prime mortgage market too.....

Life is weeding out the weak......

 

Juan and Jesus doesn't need credit they pay cash for a junker and hit the road and haul for what ever, what ever the man tells them to do they do.

 

Here's a quote from Western Distributing's Brokerage website:

"We are partnered with many carriers and work with them on a daily basis. We can even run loads through Don Ragland Transportation or Jimenez Trucking LLC – our minority carriers - and help give you the minority tier dollars you need for your diversity programs!"

It doesn't get much more blatant than that!

 

I know of some carriers who have in the past told their drivers, co & leased o/o one rate when the rate was much higher. AL carriers had loads out of al going to tx a while back & skimming over $1000.00 off every load. the loads originally paid great. now usually it is the broker who takes what they can & pays the driver what they think the cheapest they can get it moved for. in this instance, it was the carrier. I wonder how many carriers do this. by the way AL carriers have a lawsuit against them. they are answering in court. I doubt much will become of it, other than back pay to drivers, o/o's.

 

I want to know how you get the same mpg loaded as you do empty? Also wouldn't a loaded truck also get more wear and tear than an empty one?