something to ponder

[95_stroker]

There isnt 2.00/gallon taxes on diesel fuel.

The deal is since he is an independent owner he is getting his fuel at 1.28/gal from FedEx who is paying more than likely full price for it. He might not get paid the same rate per mile that operator "X" gets who buys his own fuel at pump prices.

 

[Crumm]

The deal is since he is an independent owner he is getting his fuel at 1.28/gal from FedEx who is paying more than likely full price for it. He might not get paid the same rate per mile that operator "X" gets who buys his own fuel at pump prices.

We have a winner. When his contract was negotiated the fuel price was $1.28 per gallon and rather than putting a fuel surcharge on his rate FedEx eats the increases and in turn raises the FedEx rates to make up for it. When his contract is up his rate will go up as well as what he pays for fuel. The fuel is not leaving the refinery for $1.28.

There are trucking company's up here that have owner operators. Company A pays for all the fuel, Company B has a low set price for there owner operators and Company C charges there owner operators full price for the fuel but there is a surcharge added to the rate to make up for the price increase. Drivers at Company A could care less what kind of fuel mileage they are getting-not good for company. Drivers at company C don't have much loyalty to the company as they can go haul for the company with the highest rates for the day. Drivers at Company B stick around since they are getting a smokin deal on fuel that they can't get anywhere else. The company makes the same in all three cases due to the fact that they pass all increases on to the customer in the form of a fuel surcharge.

 

[BIG JOE]

Thanks Crumm. Makes sence. That exsplains it...............

 

[bushpilot]

they could have bought based on speculation <locking in on a LOW rate>
by contract.

years ago, IBM did this w/ HERTZ Rental Cars...so when the street price
was 2+ bucks per gallon, employees were charged under 1.75per gallon....

 

[BamaSixGun]

One of the big auto transport companies (The Waggoners Trucking) only charges their independant drivers around 1.43 a gallon for the diesel they buy.

Just like Mike said.

 

[DaveBen]

Why would the government NOT tax a company, Fedex? Fedex has no special tax exempt status, that I know of. Something is fishy here.

Dave

 

[WD40]

There is nothing fishy about the deal the Fed-X drivers are getting. It's just a perk that Fed-X gives there drivers to get them to work for the co.
The driver don't get a discount on the brakes or other work he has to have done on his truck. These little trucks go though brakes and tires like you wouldn't believe. If they didn't get the fuel at the price they get it at Fed-X couldn't get and keep drivers. They still have a very big turn over with there package drivers.

 

[F350DRW1]

Chances are he has an established route and gets a fuel surcharge credited to him at a set percentage. That receipt would be whats coming off his settlement every 2 weeks or perhaps monthly.