Truck Load Rates Halt 8 Week Slide 2.0

Discussion in 'Freight Broker Forum' started by Scooter Jones, Mar 7, 2020.

  1. p608

    p608 Road Train Member

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    Not "essential services"
     
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  3. Scooter Jones

    Scooter Jones Road Train Member

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    Not to change the subject, one of my son's was asking me about the fuel surcharge in the trucking industry. I don't know a lot about fuel surcharges mainly because I don't have any on-going freight contracts where a fuel surcharge is factored into the rates.

    I was reading on TTR where some owner operators are really happy when the cost of diesel goes up, because they bank on the FSC addition. That seemed odd to me that some owner operators were happy about diesel prices going up, when it obviously hurts someone else in the pocket book?

    My question is, who came up with the FSC, and who pays for it? Is it a subsidy scheme established by the government to reimburse trucking companies when the fuel market goes up, keeping them solvent with an advantage over their competition? If so, who ultimately pays for it? Is it like a hidden tax that gets passed onto the consumer?

    Any of you guys get the FSC?
     
    BoostedTeg Thanks this.
  4. Scooter Jones

    Scooter Jones Road Train Member

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    Also, I'm really sorry I've ever said anything about my personal live, rates, PPP, EIDL or Stimulus Checks here on TTR. I didn't realize how it upsets so many. I'll try and refrain from such things hereafter.

    You all have a nice weekend! I'm off to do some side business today.
     
  5. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    The surcharge came about in the 70s, when, because of the Arab oil embargo, Fuel prices shot throught the roof. As all rates then were Regulated by the ICC, companies and O/Os alike could not raise their rates to compensate for the increased cost. Getting a rate change through the ICC was a time consuming process. So the fuel surcharged came into being.
    It is not a subsidy. It is all paid by whoever pays the freight bill and is included in the total charge.
     
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  6. TallJoe

    TallJoe Road Train Member

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    My understanding of Fuel Surcharge was that it was a part of a contract between a shipper or broker and a carrier. A formula protecting the carrier from fuel price increases over the period of the contract: e.g. for every fuel price bracket, the shipper subsidizes the carrier by a agreed amount to the gallon of fuel purchased. I don't think that the government regulates it or has anything to do with it.
    I also don't quite understand why they say they will make more money. Perhaps, the formula is formulated in such a way that the surcharge generously exceeds the increased cost due to a higher diesel price. Or it could also be illusionary.
     
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  7. TallJoe

    TallJoe Road Train Member

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    In March I had to cough out over 7 grand of property taxes to the Cook County right at the time of the lock downs and freight drying up quickly. My rental condo was vacant and too risky to put it back on the market due to eviction moratorium yet all the association fees and costs it involved had to be paid. I tried to run, do best I could at the time, never stopped really.
    Some people here were criticizing me for it too.
    Then I saw masses with their hands extended for those hand outs (PPP) and thought if they're all are victims of pandemic and I was running at nearly a loss and required to still pay all the taxes and fees then I sure should be eligible for protecting my payroll too. I struggled with the thought a little but at the last moment I took PPP, about 6 grand. I also took the EIDL but that is a real loan to be paid back. I utilize it per SBA requirements. The payment installments will be due in a few months. Then the rates improved unexpectedly but the future is still hard to predict. When the pandemic situation is over and things considered normal, and I see confidence in the freight market, I'll pay it back at an accelerated rate or even as a lump sum.

    I do appreciate your contributions in the other thread about how to apply for it...notably Pay Pal which helped me to facilitate the process.
    I also took mental notes of your ... let's call it moral aspects of it in the same other thread, which also helped me to clear my own mind from any qualms against taking it.
     
  8. TallJoe

    TallJoe Road Train Member

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    BTW. IOWA was under The Mother Nature assualt yesterday. I've never seen so many wrecks on such a short stretch of I-80 Omaha, Ne - De Soto, IA ( the super coop) as last night and I've been at this nearly 20 years. It all looked like a aftermath of a tank battle.
     
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  9. Oscar the KW

    Oscar the KW No Filter

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    Nothing to be sorry for, and I wouldn’t let a couple of haters decide what you post. By doing that you let them win.

    If it’s any consolation, I applied for and received the first round of PPP, and will do so for the second round as well. And I’ll still sleep like a baby, maybe more so knowing how much it upsets a few on here.
     
  10. Midwest Trucker

    Midwest Trucker Road Train Member

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    Looks like more and more what I said a couple days ago about opening up the country post Jan 20 will be true. You know, now that the economy is ruined then let’s save the day. “Build back better” right? :rollseyes:
     
    SteveScott, 59EX, p608 and 4 others Thank this.
  11. SteveScott

    SteveScott Road Train Member

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    Kind of off subject, but we had an interesting day around here yesterday. My son was furloughed from his job a couple months ago so he's staying with us until things turn around. Yesterday he went out to hop in his car and do some things, and his car was gone. Yep, stolen from right in front of our house. Called police and filled out a report. Three hours later, received a call that they had his car pulled over 15 miles away and wanted us to drive up to confirm it was the right car. It was, and they arrested the driver. He was a tweaker, and the car was full of stolen merchandise like clothing tools, cells phones, just all kinds of random stuff. It was a 97 Mercedes and the guy had some kind of master key that worked in the door and ignition. I always thought Mercedes were fairly theft proof, but I guess not. Anyway, a happy ending after a strange day. Being this is California, the thief will more than likely be released soon for humanitarian reasons.
     
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