Good morning everyone ☕️🤔
Truck business FSC tutorial info.
This is the link to the Federal Goverment’s Department of Energy for FSC information.
Current FSC is $0.34 per mile.
At 7 mpg that equals $2.38 per gallon
8 mpg equals $2.72 per gallon.
Calculate your own based on currrnt mpg X $0.34 this week. 🎯
If you pay discount cost say, $3.45 this week minus $2.38 = $1.07 (cost per gallon) or basicly $.0153 per mile fuel cost out of your line haul revenue. At 7 mpg.
It vital to recognize each company generally uses their own formulas. Also in most contracts these rates change on Tuesday each week.
Spot freight normally will not have any FSC. If a broker offers FSC it has just been subtracted from the Line Haul rate.
Brokers know the psychologically using this will influance a truck owner operator to accept a lower rate in the end.
In the end the total revenue received is the $$$$ that matter not how the $$$$ are defined or named. Revenue is revenue in the end no matter how you slice the cake.
But cross checking this DOE reference provides you with knowledge and knowlage is power in the negoiating game.
Suggestions , questions 🤔 share yours
Thx
Gary