Diesel Fuel Legislative Happenings 

The Subcommittee on Highways and Transit is scheduled to meet on Tuesday, May 6, 2008, at 10:00 AM to receive testimony on the causes of rising diesel fuel costs and the impact of this trend on the trucking industry.  The Subcommittee will also examine the relationship among motor carriers, brokers, shippers, and independent drivers with respect to setting and collecting fuel surcharges. 

This hearing will be conducted live on C-SPAN 3 at 10 am and is scheduled to be rebroadcast at 2 pm today. 

The summary of the subject matter to be discussed can be found here. 

A few highlights that all are familiar with from that summary include the following statements;  

Trucking fuel surcharges are not fixed and not regulated by any Federal entity.  In contrast the Surface Transportation Board determines the reasonableness of fuel surcharges assessed in the rail industry.  (Note: OOIDA does provide guidance on how owners-operators can apply the fuel surcharge.  It can be found here. )

Independent truck drivers contend that they do not control whether a broker is charging for the rising cost of fuel; the amount of the surcharge; or whether the surcharge is specifically itemized in the rate agreed to by the shipper (as opposed to just a flat increase of the charge for the load).  These drivers argue that lack of disclosure requirements makes it difficult to verify whether the fuel surcharge is being passed on to those that are paying the higher price at the pump. 

This hearing is the result of action to implement the TRUCC Act.  TruckerToTrucker will be monitoring and reporting on the activities of this Subcommittee.  Stay tuned for details and let us know your thinking.