Why are brokers keeping the fuel surcharges that is intended for us all loads pays it but we do not
Discussion in 'Ask An Owner Operator' started by W900easymoney, Jun 10, 2018.
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Know the law and make sure broker learns it too. You are responsible for your own paycheck so don't work for cheating brokers.
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Dino soar Thanks this.
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If a broker offers me $1000 to haul a load, that’s the end of the offer.
If I tell him it’s $1000 plus $200 for FSC, and he agrees, then I haul it for $1200.
I could tell him “extra $200 for unicorn flatulence” if I wanted - or $200 for late notice, early notice, or its a day ending with a Y.
FSC applies to contracted work, for protection against fluctuations in fuel price.
Spot market is just that. The on the spot price.
Johnny is contracted to that lane for $1000. Johnny can’t cover it.
I agree to haul it for $1,000 through a broker - my agreement starts and ends with the broker.
If the shipper is in a pinch and will pay $1200, then yay me.
Is this any clearer or am I just rambling?Last edited: Jun 10, 2018
DSK333, Opendeckin, magoo68 and 4 others Thank this. -
Fuel surcharge is... kind of a lease operator type term...
If you charge $2000 to move the load, that’s it. Account for it any way you wants $1600 line haul, and $400 surcharge. But that’s on your end. Places like landstar give you 100% surcharge to adjust the owners bottom line a bit.DSK333 Thanks this. -
1600 linehaul at 73%
400 FSC at 100%
Is better for me than 2000 at 73%.
I can negotiate more FSC - but it’s a sweetener from the agent to take a load - if he can’t move the total price higher. It also cuts from his pocket, but then it becomes an agent negotiation.
If you run your own numbers, the price is the price. -
I tell the drivers always negotiate on the rate exclusive of the FSC and then tell them what they need to get it done. I get the idea when I deal with brokers, they are trying to squeeze every penny out of a load no matter what.
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