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To: Rarebird who wrote (54201)	6/13/2000 12:27:00 PM
From: long-gone	Respond to of 116784

Truckers, Shippers Clash Over Fuel Surcharge Bill MoneyNews Home <http://www.moneynews.com/m/> ú Free E-mail News </moneynews/m/email.shtml> ú Columnists </moneynews/m/finan_columnists.shtml> ú News Links </moneynews/m/links.shtml> ú Late Night Jokes </liners.shtml> Archives </moneynews/m/archives.shtml> ú Shopping Mall <http://www.zipmax.com> ú Newsletters </moneynews/m/publications.shtml> ú Classifieds <http://www.apexclassifieds.com> ú Forum <http://www.newsmax.com/cgi-bin/ubb/forumdisplay.cgi?action=topics&forum=Business/Economy&number=4&DaysPrune=30&LastLogin=> ú Contact Us </contact.shtml> All Rights Reserved ¸ NewsMax.com Oliver B. Patton, Washington Editor, Newport's Truckinginfo.com June 12, 2000 Truckers and shippers butted heads last week over a legislative proposal to create a mandatory national fuel surcharge. Truckers, lead by the Owner-Operator Independent Drivers Assn., told the House Ground Transportation Subcommittee that the bill is critical to their survival. Shippers, on the other hand, said the bill is not necessary - that the free market will find a solution to the problem of escalating fuel prices. The Motor Carrier Fuel Cost Equity Act of 2000, introduced last month by Reps. Nick Rahall, D-WV, and Roy Blunt, R-MO, would create a surcharge for truckload carriers triggered by a sudden jump in fuel prices. The surcharge would have to be passed through to the trucker who provides the service, and it would not affect surcharges that already are in place. Rahall explained that the bill is necessary because owner-operators do not have the market clout to negotiate the same rate arrangements that the big carriers can negotiate. Many small truckers have been forced out of business by the fuel-price run-up that began this past winter, said OOIDA Executive Vice President Todd Spencer. "These hard working men and women are seeing their livelihoods evaporate as OPEC manipulates the oil market,? Spencer said. Rising fuel costs have added an average of $300 per week to owner-operators' costs, he said. This can add up to $15,000 a year - a big bite out of the average owner-operator's $35,000 annual net income. Debra Mordus, president of Black Ribbon Express, told the committee that six months ago her company owned 31 trucks. But by March, with fuel costing an average of $1.50 a gallon in her areas of operation, it was clear that the year's profit was already gone. Her fleet is down to 17 trucks - the other 14 "we had to literally give away for what we owed on them,? she said. "Not only will there not be profits, there may not be a company.? Shippers contend that the bill constitutes a return to economic regulation of trucking, but Rahall rejected that view. He said the bill specifically forbids the Department of Transportation or the Surface Transportation Board from exerting any regulatory control over this issue. Differences between parties to the surcharge would not be settled by the government but in court. Debra Phillips, executive director of the National Small Shipments Traffic Conference, listed other shipper concerns. Shippers who use third-party logistics providers may not be able to determine if their freight is moving by truckload, less-than-truckload or package carrier, she said. And NASSTRAC members are concerned that the bill does not protect them from multiple surcharges. Kathy Luhn, vice president of public affairs for the National Industrial Transportation League, said that since fuel prices have peaked there is no need for the bill at this time. And in any case, fuel price fluctuations should be covered by the overall price of the trucking service, she said. Also speaking against the bill was the Transportation Intermediaries Assn. The largest trucking interest group, American Trucking Associations, does not have a position on the bill. ATA has members on both sides of the issue, an ATA lobbyist said. What's next? Spencer of OOIDA said there is interest in the bill on the Senate side, although there has been no definite action yet. For more trucking news, go to truckinginfo.com ¸ 2000 Newport's Truckinginfo.com. All rights reserved. Reprint Information </reprints.shtml> newsmax.com