Wednesday, April 30, 2008

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.

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