IMPORTANT MESSSAGE FROM OOIDA CONCERNING FUEL

Fkatz

Veteran Expediter
Charter Member
I Recieved a e-mail from OOIDA about the fuel surcharges, I copied and Pasted to this meassage:

National CALL-TO-ACTION

On March 10th, the U.S. House of Representatives passed H.R. 3, also known simply as "The Highway Bill".

Section 4139 of that bill says that all motor carriers, brokers and freight forwarders running truckload freight MUST implement fuel surcharges and they MUST pass 100% of those surcharges through to the person who actually pays for the fuel.

With diesel prices at historic highs and climbing, now is the time to write the fuel surcharge legislation into law. Some truckers are currently receiving some surcharge money, but most are either getting back a fraction of what they actually pay for fuel or nothing at all.

Section 4139 of H.R. 3 will:


- Help truckers survive spikes in prices at the pumps
- Level the playing field for small business truckers
- Use the standard industry benchmark price ($1.15/gallon)
- Cost the government no money to implement or enforce


The next step is to have the SENATE COMMERCE COMMITTEE include the fuel surcharge provision in their version of the highway bill.

Please write and call both of your Senators as soon as possible to urge them to support the fuel surcharge legislation in section 4139 of H.R. 3. Even if they are not members of the Senate Commerce committee, they can help to influence the Senators who are. We need their support. Remember, you are their constituent and you are a valuable asset to their state.

If you are not sure who your Senators are, simply phone the OOIDA Membership Department and they'll look up the information for you. The toll-free number is 1-800-444-5791. You can also call the U.S. Capitol switchboard at (202) 224-3121 and be contacted to the Senators' offices after providing the operator with your zip code.

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SAMPLE PHONE MESSAGE:

"I am from Hometown, Minnesota and I am a small business trucker. We need to have fuel surcharge legislation passed to survive spikes in diesel fuel prices. I ask that Senator _______ tell his/her colleagues on the Commerce committee to include Section 4139 from the House highway bill (H.R. 3) in the committee's part of the Senate highway bill"
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Please write and call your Senators as soon as possible. A sample letter is attached. Feel free to cut and paste, use exact same wording, personalize and add your own thoughts or write something completely different . . . just let them know that truckers from their home state and across the nation need the fuel surcharge passed into law.

You can visit www.congress.org <http://www.congress.org/> or www.senate.gov <http://www.senate.gov/> to find out who your Senators are, where to send letters and how to get a fax to them.

TO ENSURE YOUR LETTER GETS TO THE SENATOR IN A TIMELY MANNER, FAX IT TO THEM AND THEN DROP IT IN THE MAIL.

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SAMPLE LETTER:

March 16, 2005

The Honorable ______________
XXX Russell Senate Office Building
Washington, DC 20510


Dear Senator ___________,

As a small business trucker and a constituent of yours, I ask that you tell your colleagues on the Commerce committee to include the truckload fuel surcharge provision from section 4139 of H.R.3 in their part of the Senate highway bill. I do not have the ability to raise my rates or establish a fuel surcharge when the price of fuel jumps. Without the ability to pass along higher fuel costs through a surcharge, tens of thousands of small business truckers like myself have gone out of business during the last few years.

Fuel is by far my largest cost of doing business. On average, fuel purchases amount to about 30-40% of my operating expenses. The average cost of diesel at the pump in our state is significantly higher than a year ago at this time. With strong demand, tight supplies and the rising cost of crude oil, the Department of Energy predicts that diesel prices will only continue to rise.

The fuel surcharge legislation I am asking you to support will help to maintain a reliable, competitive, and safe trucking industry without any cost to the federal government. It will simply give all truckers the ability to collect a fuel surcharge to cover increased fuel costs. It is the same mechanism that is used by airlines, railroads, steamship lines, hotels, and even taxicabs to recover higher fuel costs.

Without the fuel surcharge legislation being made into law, the livelihoods of many hardworking people from our state and the rest of the country will continue to fall victim to unstable and escalating fuel prices. Please ask that the truckload fuel surcharge language from section 4139 of H.R.3 be included in the Commerce committee's part of the highway bill.


Thank you,


(Sign and provide your address)


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If you have questions, do not hesitate to call the Association at 1-800-444-5791.

TOGETHER WE CAN MAKE OUR VOICES HEARD.
TOGETHER WE CAN MAKE CAPITOL HILL TAKE NOTICE.
TOGETHER WE CAN MAKE LIFE BETTER FOR TRUCKERS THROUGHOUT AMERICA.
 

merkurfan

Expert Expediter
It's a nice thought. Won't work though. Lowballers will just lower their rates so they can take additional surcharge and run at basically the same rates. There is NO money for inforcement, so who is going to force a company to pay it through to the driver? Of course the driver should quit but some won't and others will replace them.

Higher freight rates (or surcharges) will also lower the amount of freight out there and the cut rate guys will really start to clean up. A FSC is not what we need. We need more oil wells, refineries and pipelines. Not mandated laws.

I am a member of OOIDA and I understand why they support it, but it won't work.
 

Pa_xpdtr

Expert Expediter
You may be right that Lowballers will try to squirm their way around a new law, but it still doesn't hurt to have our voices known. And if they do not comply with with the law, there is always the option of class action lawsuits. This could hurt the Lowballers enough that they will either comply, or be forced out of business. Not only would it hurt the Lowballers financially, it may chase some shippers away from them who do not want to associate with these lawbreakers.

So, let's all go ahead and call and write our Senators. It definetly will not hurt, and may very well help us in the long run.

Just my two-cents worth.


Pa_xpdtr
 

RichM

Veteran Expediter
Charter Member
I printed tht letter yesterday and faxed it to my Senator,like you say it cn't hurt.
 

merkurfan

Expert Expediter
For every lowballer you put out of business, 4 more pop up. That is why they are always around. I use to work for one, he's going broke. But that won't stop the next guy from accepting the same freight for the same money. I like the idea of the law to force the big guys that might be fudging the numbers (saying they could not collect a FSC when they did) and it should force the big 3 to pay it, but I'll bet they lower the amount per mile they are willing to accept.

I am all for anything that will put more money on my bottom line. I just see companies adjusting base rates to acomodate. At least the driver will get 100% of the FSC.
 

davekc

Senior Moderator
Staff member
Fleet Owner
You are correct. Companies will lower their tariff rate.
I had posted earlier, Landstar straight trucks were hauling freight off the docks in Laredo for well under a dollar per mile.
If they keep doing that, these drivers will be out of business within a year.
If they continue to run cheap freight, they will certainly find cheap results.
Davekc
 
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