[Rawlco]

Originally Posted by solo379

BTW, my actual fuel cost for the last week, was $0.43 cpm! :P

Shhhh, don't tell anyone. 8) Better to estimate too high than too low and end up with nothing at the end. :roll:

[geomon]

We are basing our fsc on the O/O paying $1.50 per gallon

A detail but most FSC's I've run across use a base price of $1.10-$1.25. Where did you came across $1.50 to use as a base?

[NoProblem]

Truck Payment = $0.25 per mile This is for a new truck under warranty. (less if you get more paid miles)

It's also less if the truck is paid off or if its a used truck. I'll stand with .20 for mile on this. Seems the vast majority of O/Os with new trucks drive for swift, nearly everyone else has a used truck.

Operator health insurance and workers comp (or similar) $1,000 per month/10,000 miles per month = $0.10 per mile. A company driver will get this in addition to their per mile pay, so that should be in addition to the $0.50 operator wage above.

This is an option that drivers can pay for if they want - or it costs nothing to go without it. If an O/O wants this insurance, it comes out of their own pocket since it has no impact on whether or not they can do their job or carry out their contractual obligation of hauling freight.

To me, this cost can be bundled along with food, entertainment, house payment, electric bill, etc.

Maintenance costs tires, oil changes, minor repairs (tractor only) = $0.05 per mile.

Maintenence rainy day fund = $0.05 per mile (Again this is for a new tractor under warranty, a used tractor will require more maintenence)

I understand your including this as an expense, as it is a necessity - I just don't see it as my obligation to provide an additional .10/mile for maintenence.

Trailer rental costs (or are you going to be providing the trailers?) = $0.10 per mile.

The best quote I got so far was about $800/month (.08/mile) for cargo, bob tail, trailor, etc. insurance. Plates, permits cost some $400 and is a once a year charge that the O/O is welcome to purchase on their own if they can get a better deal - same goes for insurance.

Tolls and incidental expenses such as fuel tax, highway tax, permits. . . = $0.10 per mile.[/quote]

Some customers pay a surcharge for extensive toll roads, others do not - either way, while that might cost .10/mile, that would be something that might happen only on a load by load basis that involved driving toll roads.

BTW, my actual fuel cost for the last week, was $0.43 cpm!

Thanks for your honesty. This is what I am talkng about. Rawlco is trying to make me go broke with his .73/mile fsc. :?

A detail but most FSC's I've run across use a base price of $1.10-$1.25. Where did you came across $1.50 to use as a base?

It is a figure we have been using for some +3 years - well before most of our customers even paid fsc, we were paying a fsc to our drivers out of our own pocket based on fuel prices above $1.50 per gallon.

[Aligator]

How much is the FSC? If the FSC is $1 per mile and you get 74% that's a different story.

I asked this question once before. Here's my understanding:

Basic freight charges assume that fuel costs $1.25/gal and that you are driving a truck that gets 6 MPG.

So the difference between $1.25 and the current cost - say, $3.05 - is the fuel sur-charge. That would be $1.80, right?

Then you divide that $1.80 by your 6MPG. That's 30 CPM. And the thought that it should go anywhere except to the truck is outrageous.

[GMAN]

A Landstar agent told me a couple of days ago that they were paying $0.38/mile fsc. I agree Aligator. If I found out that a carrier I was leased to was skimming off the top, I would cancel my lease immediately. Most reputable carrier's pass the fsc along to their owner operators. 8)

[Rev.Vassago]

This whole discussion is quite humorous. Thanks for the laugh, all. :lol:

[solo379]

Originally Posted by Rev.Vassago

This whole discussion is quite humorous. Thanks for the laugh, all. :lol:

And what's so funny about it? :roll:

[Jackrabbit379]

That everbody's got gas,and they're charging for it :P

[Rawlco]

You apparently are not reading my posts carefully NoProblem.

You claim:

Rawlco is trying to make me go broke with his .73/mile fsc.

And what I am saying is:

$0.51 per ACTUAL mile. The problem still is that IF only 90% of the miles are paid, and IF we include idling consumption, THEN the actual fuel cost per PAID mile is going to be around $0.60 for last week only.

This is actual fuel cost, not the fuel surcharge as you claim. Fuel surcharge is figured differently and Aligator explained it very well.

I have figured the fuel cost per paid mile because you have stated that you will not pay for deadhead miles, or rather only pay $0.70 per mile IF the deadhead exceeds 50 miles.

The $0.73 per paid mile fuel cost is based on $3.50 per gallon fuel which some states are seeing today.

You are free to set any rate and use any numbers that you see fit NoProblem. I wouldn't lease to a mileage pay carrier anyway.

[yoopr]

In Michigan as O/O you are Required to Carry Workers Comp. but if you actually get hurt good luck trying to collect on it.
Big Scam