newsworthy
fuel-surcharge squabble headed
for second round
For many months, independent truckers and truck brokers have
crossed swords over the pass-through of fuel surcharges paid by
shippers. Truckers claim brokers should be passing on the surcharges in full to the trucker. Brokers say they are entitled to a cut.
Late last year, the dispute came a step closer to resolution when
Congress took action to settle the argument as far as military traffic
was concerned. The FY 2009 Pentagon appropriations bill contains
language requiring the Pentagon to establish a mechanism ensuring
a 100-percent pass-through of fuel surcharges to the party who paid
for the fuel. The secretary of defense must issue a status report to
Congress by early summer 2009. (The Pentagon establishes its own
non-negotiable fuel surcharges separate from the base rate it pays.)
Now, the question is whether the independent truckers who
pressed for the measure can get Congress to enact similar legislation
for the commercial side. Todd Spencer, executive vice president of
the Owner-Operators Independent Drivers Association, says his
group will work in the new Congress to get a similar bill passed. But
it will face opposition in its quest. The Transportation
Intermediaries Association, which represents truck brokers, forwarders, and other third parties, says it is girding for a fight to block
the passage of any such legislation in the new Congress. The TIA
was part of a coalition that had opposed the military surcharge
pass-through measure.
OOIDA had sought the legislative remedy to the military surcharge dispute because it was concerned that third parties, which
touch virtually all military traffic and which broker payments from
the Pentagon to the truckers, were keeping large portions of the fuel
surcharge for themselves rather than reimbursing the truckers in full.
“Brokers were taking 20, 30, and even 50 percent of the surcharges
that should have been passed on to the trucker,” says Spencer. “We
not only think it’s a fraud on truckers, but it’s a fraud on consumers
and taxpayers.”
Spencer says the language in the Pentagon appropriations bill
opens the surcharge mechanism to public scrutiny, thus keeping
everyone honest. “Shippers and consumers have everything to gain
from increased transparency,” he says. “We don’t think these transactions should be done in secret.”
The Transportation Intermediaries Association claimed victory as
well. It said Congress stripped out language from the final version
that would have required the fuel surcharge to be reported on every
Defense Department shipment tendered. In addition, language was
dropped from the final bill that would have made private companies
doing business with the military publicly disclose their profit margins
on each shipment, according to the group. “Congress correctly rejected the margin-posting provision [as] an unnecessary intrusion into
private business,” says Robert Voltmann, TIA’s president and CEO.
Voltmann adds that existing government regulations provide
“ample opportunities” for everyone involved to examine the particulars of each transaction.
ground breakers
Evergreen Line has made the Port of
Savannah (Ga.) the first port of call on its
Asia-U.S. East Coast service. The carrier
says the move was prompted by growth
in retail distribution center development
around the Georgia port. The rotation of
the 4,211-TEU vessel known as Ever
Diadem 0453-081E is now Yantian -
Hong Kong – Kaohsiung – Colon –
Savannah – New York – Baltimore –
Colon – Yantian. The new schedule allows
goods from the last Chinese port in the
rotation, Kaohsiung, to reach Savannah in
just 22 days.
Logistics service provider OHL has
added more warehouse space for clients
in Memphis, Tenn. OHL has leased a
176,400-square-foot building in southeast
Memphis to serve the needs of five new
customers. That brings the total amount of
warehouse space operated by OHL in the
Memphis area to 1. 4 million square feet.
Camping and outdoor equipment manufacturer Coleman Co. plans to open a 1. 1
million-square-foot distribution center in
Gardner, Kan., near Kansas City. The $43
million investment is expected to provide
170 jobs. In addition, Coleman’s sister
company, Pure Fishing, recently opened a
400,000-square-foot distribution facility at
the Skyport Business Park in Kansas City.
C.H. Robinson, a third-party provider
that offers truckload, less-than-truckload,
rail, refrigerated transportation, and other
services, has opened a new office in
Corpus Christi, Texas. With the establishment of the Corpus Christi operation, C.H.
Robinson now has an office in each port
city in the United States.
Pet retailer Petco will soon be opening
a new regional distribution center in
Braselton, Ga. The 506,000-square-foot
building represents a $33 million investment aimed at improving service to more
than 200 stores in the Southeast. At full
capacity, the DC is expected to create
about 300 jobs.
