Diesel Fuel Prices Subcommittee Hearing
TruckerToTrucker watched every minute of the 4 hour Subcommittee Meeting Chaired by Rep. Peter DeFazio, D-OR. One had to be impressed by DeFazio's sharp questioning of witnesses and one can surmise that the committee will favor passage of the TRUCC Act known as H.R.5934 in the House and S 2910 in the Senate.
Mr. Todd Spencer representing OOIDA was impressive and members can be assured that with a individual of this caliber representing them, that they are getting great value. His anecdotal story about a trucker receiving only $600 from a broker when the load paid over $1400 was impressive and should be instructive to all truckers to let others know about their difficulties as it can change the way business in conducted. Spencer used a number of statistics to illustrate the plight of the independent trucker. Among those were;
935 companies with 5 or more trucks have gone out of business this year..
96% of trucking companies have 20 or less trucks and 86% have 6 or less trucks.
Spencer was asked a variety of questions and was authoritative and knowledgeable. He said that the average trucker has about as much leverage with a broker as a “guy at a payday loan shop.”
Opposing the TRUCC Act was Robert Voltmann, President of the Transportation Intermediaries Association (TIA) which represents brokers. He stated that all fuel surcharges are being passed on to truckers and that the TRUCC Act was not necessary. He suggested that a “freight recession” was responsible for the demise of so many small truck companies. Clearly he was unable to articulate a rational position to oppose the TRUCC Act.
Another witness at the hearing was Michael Card representing the ATA. He also owns a family trucking company that controls approximately 500 trucks. He supported the TRUCC Act and presented several other suggestions to the committee to save fuel. He supported the use of APU's to reduce idling time and suggested the 12% federal excise tax on the APU's be eliminated in an attempt to reduce the cost for the small independent company or owner/operator. He also suggested that the speed limit should be reduced to 55mph (note 1:this may have been 65 mph- see comments below- the tape will be viewed again to ascertain the exact speed that was quoted and the context of the remarks) (Note 2: I regret the error - he said 65 mph - he did refer to the earlier fuel crisis in the 70's when the speed was reduced at that time to 55 mph). Finally, he stressed that the EPA Smartway program could be improved.
TruckerToTrucker urges all to contact their Senator or Representative and request their support for the TRUCC Act. This is vital legislation that will help all.
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