[GMAN]

Originally Posted by BigDiesel

Not seeing rates drop that much in neck of the woods... XMAS tree rates are down a little this year, but our nursery loads are fine.... But nursery loads pay a bit more as there is more time and stops involved.

My nursery loads are close to what they were in the spring, but not as many of them available. There are some who have been coming in trying to cut the rate. We chose not to participate in the rate auction. Of course, the rates have come down somewhat due to the lower fsc. Most everything else has seen a decline.

[GMAN]

Originally Posted by Rev.Vassago

I just got an early Christmas present today when I found out that all the FSC on the military stuff I haul dropped from 15% to 4%. What used to be a $325 FSC is now a $93 FSC. That friggin sucks.

Merry Christmas!! :thumbsdown: Cheer up. This won't last forever.

[Rev.Vassago]

Originally Posted by Orangetxguy

Who did the math to determine the FSC Rev?? Did LandStar hire a certain someone formerly associated with this forum?? :hellno::hellno::hellno::hellno::hellno:

I swear it was. I was dumbfounded when I found that out.

[Chiefwhatdahey]

Originally Posted by Rev.Vassago

I swear it was. I was dumbfounded when I found that out.

DOD adjusted the cost basis from 1.40 per gal. to 2.50 per gal. about a year ago, are you saying they chopped it again?

[Rev.Vassago]

I'm not sure. But I hauled a military load at the end of October, and got $325.50 FSC on a 775 mile run. I hauled the same load yesterday, and got $93. In that time, the price of fuel did not drop that much.

[marylandkw]

Originally Posted by GMAN

Merry Christmas!! :thumbsdown: Cheer up. This won't last forever.

Promise?

I am fortunate in that I negotiate most of my rates once a year and add a FSC of my own design onto them. So my "base" rates have not dropped but I sure miss my FSC. I guess this is one of the good things about being Local.

[Chiefwhatdahey]

Originally Posted by Rev.Vassago

I'm not sure. But I hauled a military load at the end of October, and got $325.50 FSC on a 775 mile run. I hauled the same load yesterday, and got $93. In that time, the price of fuel did not drop that much.

I can't say for sure but I think Dawn and the others were supplementing the fsc when fuel shot up, this was after the DOD did their thing. My guess is the agents quit doing that when fuel went back down, I won't haul DOD unless the fsc reflects the regular rate, it just isn't worth it.

[rank]

Originally Posted by GMAN

It isn't just the fsc that has dropped. Freight rates have also dropped. Even if you take away the fsc from the rates from a couple of months ago rates were still higher than now.

It's the same ol' deal here. Real rates have fallen a little but not as much as I thought. When I took the fuel out of the equation, they were still $2.70/loaded mile compared to 6 month low of $2.50. My rates don't really get too low anyway because I just park 'em. I expect Jan, Feb to be bad tho.

[RostyC]

It might be good for you guys but high fuel is what really gave this economic downturn a kick into high gear. I know I stopped spending when diesel got outrageous. (two of my trucks are diesel and my wifes is a 454 chevy :lolHeating oil is still high and that will stop me from spending as well.
Matter of fact I ran out of fuel last week (I wasn't paying attention) so I grab a few buckets and go get 20 gallons of diesel to put in the tank till I could a delivery and it turns out diesel is now cheaper than heating oil. WTF!

So in the long run I don't think high fuel benefits anyone, and I still say you can't have growth with high energy prices, it stifles it.

[GMAN]

I think you are correct about the high fuel prices, RostyC. The problem we are seeing now is that freight rates have declined faster than the drop in fuel prices. That coupled with the slower freight has made it difficult to make as much money. With the slow economy people are not buying as much so there isn't the need for as many trucks to haul the freight. Unless people buy products there is not a need to replenish supplies. I think high fuel costs are the primary reason for the slow down. The banking problems are only a by product or effect.