Fuel Surcharge

[dirtywhiteboy]

Can anybody comment on how fuel surcharge is calculated? I have a friend who is receiving 30 cents a mile. My agent is paying around .17 cents a mile. So from my calculations he is keeping about .13 on all his o/o? doesn't seem right that he can get away with this!

[Jville trucker]

He shouldn't have a problem showing you what FSC is being collected on customer billing if he says you are collecting 100% of fuel surcharge.

[drayerman2]

I am an O/O Leased to a Company here in SAV. We get 14% FSC. Or as it figures .22 a mile. We get it both Directions. Loaded and MT. I also have a friend who is an Agent and was told Container companies have known about the surcharge for years but are only paying us on the loaded end. They are pocketing the other half of the surcharge that customers are paying. Union rules wont allow for us to backhaul. Thats why it is suppossed to pay both ways. Motor Carriers think we are to be treated like mainstream Longhaul Drivers that work loadboards. Hense only paying us on the Loaded side and blaming the Shiplines and Union when it isnt their fault. It all goes back to the Agents/Motor Carriers.

[browniebox]

It's actually shipping line rules. It's their box. Many trucking companies use empties like their own trailer to make a little extra before turning the container back in. Your FSC should include entire trip not one way. Were not pulling road freight and free to load trailer on return or outbound to dedicated customer who is using box.

[drayerman2]

You are Dead on! Done that many times. I made mine, they made theirs. But FSC wasnt applied on the return. Drivers be aware! FSC both ways. Demand it!

[cheezburger]

XM RADIO SAID TODAY TO LOOK FOR FUEL TO REACH THE 4 TO 5 DOLLAR RANGE MAYBE AS SOON AS APRIL. YOU DRIVERS BETTER START BEATING ON YOUR COMPANY'S NOW TO GET YOUR FSC UP AND READY TO KEEP GOING UP WITH THE COMING PRICES OR YOU WILL NEVER MAKE IT.I TALKED TO SCHNEIDER TODAY AND THEY ARE PAYING TODAY 32.5 CPM FOR FSC, I DON'T THINK THERE IS A COMPANY IN SAVANNAH THAT IS EVEN CLOSE, YOU NEED TO GET READY BECAUSE IT IS COMING

[pkd5757]

I have a different idea. Why don't the companies just raise their rates 10 or 15% and charge a 10 or 15% surcharge. The fuel is not going to come down anytime soon and when will we stop the FSC, 100%, 120%. Time to bite the bullet and make it a rate increase.

[kobie]

these companies are lying about the amount collected on fuel surcharges just like they are lying about the percentage of gross revenue paid by the customer. i was told we are not allowed to look at customer billing today after one driver found their is a big difference in what we got paid by a certain customer. when questioned the customer told him what they were paying for fuel surcharge. big,big difference in what we are paid compared to what they have been collecting while claiming we get 100% of that charge. is there anything we legally can do about this? if so who can we contact?

[hammerdown 85]

GO TO THE TRUH IN LEASING REGULATIONS . WE HAVE THE RIGHT TO SEE WHAT IS BENN PAY . DONT TRUST ME READ THE REGULATION

[cheezburger]

if your lease says that you get 100% of the fsc you can get a attorney and make them show there billing and if they cheated you ,you can go back on all loads,hope you fry there a$$

[cityboy]

Truth in Leasing for Commercial Trucking Companies and Truck Owners

By Schneider & Onofry, P.C.

Article provided by Schneider & Onofry. Please visit our Web site at www.soarizonalaw.com.

For both commercial trucking companies and truck owners leasing their vehicles and services, it is important to know the legal basics of lease agreements. The federal truth in leasing law (49 CFR Part 376) regulates truck leases. Knowing the ins and outs of these federal motor carrier regulations and checking the lease contracts for completeness and compliance with the regulations is critical to both the trucking company (the lessee) and the independent contractor/truck owner (the lessor).

Leasing Agreement Basics

The owner of the equipment is the lessor and the motor carrier is the lessee. It is important to keep these terms straight as the parties read the contract prior to signing. Both parties should also bear in mind that all of their agreements should be in writing; generally the contract will control any disputes between the parties, and any verbal agreements on the side that are not in the contract will likely be unenforceable. If possible, the independent contractor should obtain a copy of the contract in advance, examine it carefully and have an experienced attorney look it over. Commercial lessees should also have an attorney review their contracts for compliance with the law.

The contract should cover matters such as who pays for which permits, licenses and liability insurance. In general, the motor carrier lessee will need to have general liability insurance and freight liability on the loads. The independent contractor lessor may be required to provide additional coverage — for the vehicle as well as the tractor or trailer. The lessee should be sure to obtain proof that the lessor has obtained any required coverage. The lessee should also be prepared to provide the independent contractor with copies of applicable insurance policies that could affect the independent contractor's liability as well as any policies the independent contractor is paying for in whole or in part.

Potential Lease Problems

Many lease problems arise because the parties did not successfully clarify, or did not understand, the costs and payment structure in the lease. Most parties know enough at the outset to check for language as to actual payments for service: Will the lessor be paid by the hub mile, all dispatched miles, percentage of load, etc? Many types of payment structures are possible. Particularly in cases of percentage of gross pay, the lease should stipulate that the lessee will provide copies of freight bills and invoices to the lessor that clearly show what the lessee is being paid for the load. This will help both parties avoid disputes and possible litigation.

If the lessee is a common carrier, the lessor has a right to be provided with current rate schedules. Where a lessor is being paid a percentage of the total load gross, all charge-offs that may reduce that amount should be clearly specified in the contract. Both the lessee and lessor should be aware that the lessee is not allowed to charge the lessor for shortages and damages claimed on freight until the lessor has had a chance to see the claims and clarify any discrepancies.

]The parties should also specify whether the independent contractor or the carrier will pay for tolls, scale tickets, overweight fines, and equipment violations. These terms should be spelled out clearly in the contract. The law specifies that the lessor is to be paid for the completed haul within 15 days of turning in log pages and signed billing documents. The lessee cannot make the lessor wait for payment until the freight invoice is paid.

Other specific items that should be spelled out in the lease include: Who pays for fuel? If the lessor pays fuel costs, but buys from the lessee, will it be for actual cost or a markup cost? If the lessor has mechanical work done in the company shop, what will the rates for floor hours be? Will there be a parts markup? What about an accounting fee? The contract should make clear that the lessee provides the lessor with an itemized service billing that includes all parts and labor, and that the lessor is legally entitled to purchase fuel, repairs and parts wherever he chooses to do so if he or she is the one paying for them. Including these terms in writing should help the parties to avoid unnecessary disputes down the road.

Escrow Accounts

Many lessees require a repair escrow account for necessary repairs. The lessee should have a clear accounting system for the fund and be prepared to provide the lessor with the balance. The contract should specify exactly what is covered under the repair account; phrases like "but not limited to" may result in unnecessary ambiguity. The lessee should also provide regular expense statements and balance sheets to the lessor.

The lessee may also legally require a security escrow fund to be provided by the lessor and held by the lessee. Such escrow accounts must be kept separate from operating funds and accrue interest if not accessed. The contract should spell out the circumstances under which funds will be removed from the escrow account. A complete accounting of additions and subtractions to the escrow fund must be provided to the lessor on a regular basis and escrow funds are required to be refunded to the lessor within 45 days of lease termination.

Protect Your Rights

The lease contract cannot be changed or supplemented without each party's consent and signature. Either party can sue privately for damages in the case of violations or breaches of the contract or leasing regulations, and the prevailing party may be able to recoup their attorneys' fees and costs from the losing party. Whether you are a commercial trucking company lessee or an independent trucking contractor lessor, having an experienced attorney review the contract before you sign may help avoid legal action and increase your profits throughout the leasing period.

[outafuel]

nice. this gives me some thoughts about my next move. the company i left is jerking me around on my escrow account.

[cl]

i have asked three times in the past few weeks to see a copy of the fsc collected from th customer since we are being paid percentage. there has been one excuse after another why they can't produce a copy or show me anything.

[teddybear]

ok now why do you think your company is avoiding you driver? if the company was operating legitimately why would they not want to show you the customer billing to straighten this matter out?

[tronsfrgt]

do you really think these agents have anyone to fear? drivers just quit and move on. no driver i know does anything about it. how many case have there been around here? all i hear is b*t@hing but no one takes them to court over stealing their money. if they do it is only a small percentage.

[tronsfrgt]

oh,no . must be a bad word censor here! i should have fixed it before writing it saying, all i hear is b^t@#ing but no one takes the s#*ty trucking companies to court over stealing drivers money.

[jackknife]

Apr 19, 2011 9:58:29 GMT -5 @tronsfrgt said:

do you really think these agents have anyone to fear? drivers just quit and move on. no driver i know does anything about it. how many case have there been around here? all i hear is b*t@hing but no one takes them to court over stealing their money. if they do it is only a small percentage.

very true hand. no one stands up. when there were truckers on here calling meetings i used to hear others say, when are you going to do something about this? we are all in same boat. why are so many unwilling to step up to take any responsibility on their own? no wonder the truckers calling the meetings finally gave up. i would too. i would like to see these guys try again but we can't blame them if thy don't. too bad for everyone. the agents have a free hand at robbing everyone here. sure there are a few good companies but very few indeed. maybe when pigs fly drivers will take an interest in this business but don't hold your breath baby.

[red]

man we could raise port trucking rates today if drivers would stop their trucks for two weeks. the problem i see is we have to many drivers who are willing work for pennies each day. how do you convince them to stop?

[bigboystoy]

ok everyone. how about back to the question on the fsc. my company says we get full 100% but refuses to show us the paperwork on how much fuel surcharge they collect. is there a law saying they have to pay us the fsc?

[traicounty]

if the your agent or the trucking company manager says they are paying 100% of what is being billed to customer for the fuel surcharge then why is there a problem in showing you the paper trail? makes good business sense to me. if it's a customer that you can approach ask them about the charges yourself. i bet if they are being billed extra for a diesel surcharge they would like to see that money go to who the trucking company says they are collecting it for.

[dieseljockey]

Hey drivers, companies that continue to refuse to show you the customer billing they're paying you percentage off of need to be named on this site. There is a section to do that. Take advantage of it. Inform everyone here who they are. We need to share this information so others can stay away from them. If I see a company on here that's constantly stealing money from their O/O's I'm sure not leasing a truck on with them.