Truckers for Troops

While we often disagree with their point of view as it relates to the brokerage industry, we wanted to share this awesome story about Truckers for Troops organized by OOIDA. Click here to watch the piece...

House Bill 5934 "TRUCC Act"

On Wednesday, April 30, Rep. Thomas Petri, R-WI proposed House Bill HR5934 that essentially mirrors S. 2910 detailed in yesterday's Fifth Wheel. We urge you to consider contacting your local Congressman as well as your state's two Senator's requesting their opposition to this measure. As we said below, we absolutely support the driver's right to be compensated for fuel through FSC collected by any party, however like S. 2910, this opens businesses like ours to frivolous lawsuits and a tangled mess.

Ready for Re-Regulation?

In testimony before at a House Small Business subcommittee hearing April 9, trucker Michael J. Graff of Pennsylvania-based Graff Trucking, a 44 truck operation told the members of the committee, "(W)hat we need is some help from the government to help standardize rates. If the government doesn't step in now, what we are going to have is large transportation companies only, and they are going to be dictating rates." Standardize? Or Regulate?

Spurred by soaring fuel costs, Owner-Operator Independent Drivers Association (OOIDA) is pushing for fuel surcharge regulation aimed mainly at third party transportation providers. It seems that they want Congress to believe brokers hoard the FSC to themselves and don't pay any fuel? S. 2901 or the TRUCC Act, would mandate full transparency of all fuel surcharges billed to our customers. Bob Voltmann, TIA's president said, "(T)his legislation is not necessary and would turn the clock back on 28 years of deregulation. It is a repudiation of the free market. In the free market, companies are free to accept or reject jobs. Carriers should just say no to cheap freight." To read TIA's take on S. 2910, click here.

We couldn't agree with our colleague more. There is not one shipment, not one pound of freight that we ship on behalf of our customers where we don't pay for fuel. Often times, especially with our contract clients, we have to pay more for fuel than we are billing because of a customers FSC agreement. Who are they going to come after then, the customer? Don't kid yourself, that's next! Why the Senate would want to invade the free marketplace they created through deregulation 28 years ago is well beyond me! This is the third attempt in the last seven years by OOIDA to begin to strap our industry with government regulation. It is a veiled attempt at re-regulation and we will do everything in our power to rail against this bills passage - we urge you to consider the same! Find your state's two senators at http://www.senate.gov/ and write to them urging their opposition.

Do Proposed FMCSA Training Regulations Pose Problems?

In their never ending quest to keep our industry, our drivers and the public safe, is it possible that the new FMCSA proposed training requirements do more harm than good for the overall health of trucking? While one can never begrudge any effort to increase public safety, these regulations likely have gone too far and present more problems than they solve. While exempting drivers with a current CDL, the estimated $3000 price tag for the new training regulations will likely be an impediment to new potential driver applicants. The trickle down impact will likely be shrinking capacity, decreased efficiencies and increased costs. For an insightful view on this proposed regulation, click here for an article written by a leading transportation attorney, Jay Barry Harris.

Fox Business News Story on the Truckers "Strike"

Click here for a story we posted on You Tube from this weekend's Fox Business Report with Neil Cavuto discussing the truckers strike with some of the country's leading economists and investment bankers.

More Bad News for the Small Trucker

With fuel now staying above $4 a gallon for the second straight week, the noise is being turned up quite a bit by the small and independent trucker. Strike or slow down actions are having an impact at the ports across the country, but general inland transportation has only seen a small affect from their actions.

According to Nassau Asset Management, truck repossessions increased 110% in 2007 sighting, in part higher fuel costs and it seems repos will be even higher in 1Q 2008. In this week's Traffic World, ATA said that for the first time ever, fuel costs may actually surpass labor costs as the highest expense item for trucking operators.

OOIDA and other trucking organizations are screaming for higher rates and higher surcharges to offset the rise in fuel. Now, more than ever, our reputation as a broker with the highest ethical standards takes on greater importance. It seems many brokers operating are hoarding surcharges to themselves as a revenue generator. Our hard-line policy of specific line-item pass through of FSC's on every load confirmation shows our carriers the line haul and surcharge captured from our clients and keeps our customer's load moving. Carriers continue to come to us to fill their trucks because we honor the parntership with them and our clients. Here's a link to OOIDA's website for more on their take...

"Strike" Update

As we suspected the parking or "strike" by independent truckers and small carriers has really had little impact over yesterday or today. We've had one shipment affected and it really wasn't a big deal to re-source the load to a different carrier. Even with improved communication and the severity of the situation, it seems there's simply not enough support to really make an impact. Click here to read more...