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Fuel Surcharges
Posted On 05/03/2008 17:35:44 by NightWind

I’ve been reading different stories about the price of fuel and what it’s costing the trucking industry. Then I got to thinking about why it’s costing the truckers so much and I’ve come up with this. It has nothing to do with the oil producing nations, or the oil companies. It has to do with how we run our businesses. Some may disagree with me, but after 27+ years I know service has everything to do with making a profit or closing the doors.

Trucking is based on service, short sweet and simple, so if you provide excellent service then your customer’s will pay the fuel surcharge. Sure they’ll grumble but the bottom line is if they want to stay in business and meet their customers demands and fill the orders then they have to move the loads. Some may get angry and go to another company that offers to haul it for a cheaper price, but as we all know we get what we pay for. Service is ALL the trucking industry has to offer, and we have to provide the best service in order to justify our rates and the fuel surcharges.

The problem as I see it is the companies have either been keeping either part or the entire fuel surcharge or not asking for one because they know that they haven’t provided the service that would give them a legitimate reason backed up by facts to ask and receive one.

If they are getting paid the fuel surcharge they aren’t passing it in full on to the truckers. Which leads me to this question, why aren’t the truckers looking at the companies books to see what they were actually paid?
By law truckers have the right to see what the customers are billed on each load that they have transported even one foot. The laws on leasing states that anyone that is leased to a company has the right to see the books and invoices that were sent to and paid by the shipper during regular business hours.

If the trucking companies were paid a fuel surcharge as a part of the payment of any load then the trucker should have been paid for it. Why aren’t the truckers asking the shippers themselves if they are paying a fuel surcharge and how much?  I doubt seriously that the shippers are going to be happy about being charged for something that isn’t getting to the people that it’s intended for. Why aren’t the truckers filing charges when they see that the companies are being paid the fuel surcharge and they aren’t?

Unless it’s written in the lease specifically, that the fuel surcharge won’t be passed on in full then the trucker are supposed to be paid at least a percentage of the fuel surcharge. Of course anyone that agrees to a lease that has that in it should be out of business.

I guess the best way to put it is that if you don’t know what your lease says, get it out and read it. Have the guts to ask to see the books and supporting documentation on each load that you’ve hauled. Chances are that if you find one load that you haven’t been paid correctly for then it’s almost a sure thing you haven’t been paid correctly for more than that load and more than likely it’s not just you that hasn’t been paid correctly.


 

Tags: Truckers Fuel Leases Expenses



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Viewing 1 - 2 out of 2 Comments

05/04/2008 10:06:56

Excellent blog as usual NW. You are certainly on the right track here. The shippers are slowly realizing that they are going to have to pay a FSC (fuel surcharge) if they expect to get their goods moved.
A lot of companies, and most of the brokers, seem to feel that the FSC is for them and not for the truck that actually hauls the load. They see all of those dollars that are supposed to be for the trucker and they just cannot resist getting their greedy little hands on part of it, or in some cases, all of it.
It is up to us as lease operators or owner operators to make sure that if the shipper is paying a FSC that it being passed on to the truck as it is intended to be. If your company or ####### is not passing the FSC directly on to you, they are stealing from you. Those monies are rightfully yours by law and it is nothing but theft if you do not receive them.
If you do not question whether or not you are getting the full amount of FSC then shame on you. You are just giving them permission to steal from you, and believe me they will steal from you in a heartbeat. There are very few ethics left in the trucking industry, and if they see that you are not watching what they are doing, they will take what they can from you.
Talk to the shippers, see what they are paying, if they hae nothing to hide, they will readily tell you what they are paying. If they will not pass this information on to you, then you can almost bet that there is a little hanky-panky going on  there somewhere.
Be aware of the rates,know who is paying what, question what is not clear to you, and you will stand to make a lot more money.
Runamuk





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