Jeff Berman, Group News Editor -- Logistics Management, 4/25/2008
WASHINGTON—A new piece of bipartisan legislation pledges to lend a much-needed hand to owner-operator truckers by passing 100 percent of the fuel surcharges charged to shippers back to truckers, rather than freight brokers.
The bill, entitled “The Trust in Reliable Understanding of Consumer Costs (TRUCC) Act, was introduced by Senators Olympia J. Snowe (R-Maine) and Sherrod Brown (D-Ohio). The senators said in a statement that this bill “would free small business operators and carriers from the stranglehold of unscrupulous brokers and middle-men who charge shippers for fuel costs but refuse to pass those costs on to operators that actually pay for the fuel.
This bill comes less than a week after Snowe introduced the “Diesel Parity Tax Act,” which would lower the federal diesel tax from 24.3 cents per gallon to 18.3 cents, matching retail diesel.
Snowe added that because there is currently no uniform fuel surcharge standard, small truckers are often at the mercy of freight brokers, logistics intermediaries, and larger trucking companies.
This situation, in turn, had led to owner-operators recently stage a “shutdown” on April 1 in protest of high diesel prices.
Prior to the actual shutdown, OOIDA Spokesperson Norita Taylor told LM that the OOIDA would like Congress to enact legislation mandating 100 percent pass through of fuel surcharges and transparency in those transactions, noting that when prices on store shelves go up, it is not because of truckers, but because they are seeing theses rises trickle down to them because of brokers of middle-men.
“We think the good, honest brokers, will likely be supportive of this bill, because they recognize that their customers are not just shippers, but also truckers,” Taylor said in an interview earlier today. “Right now, freight is slow. But it won’t always be that way. Plus, shippers will appreciate this bill because it provides the assurances that the higher amounts they are asked to pay out because of fuel prices are indeed being used for just that.
Other recent fuel-related developments include:
the American Trucking Associations calling on the White House to release oil from the Strategic Petroleum Reserve to curtail the run-up, which is hurting the economy and the trucking industry in particular; and
Presidential candidate John McCain calling for the suspension of the motor vehicle fuel tax between Memorial Day and Labor Day.
"Shippers are accustomed to paying fuel surcharges when fuel costs spike," Senator Brown said in a statement. "But there is no guarantee these surcharges go to the people who pay at the pump. With diesel prices at an all-time high, this bill would help…truckers who find hauling goods too costly or impossible."