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May 2, 2008

FUEL SURCHARGES * USA - Now the Norm

Virtually every freight company in Canada now uses fuel surcharges to account for volatile high energy prices

Calgary,ALB,CAN -The Calgary Herald, by Dan Healing -May 01, 2008: -- ... It's an item that anyone who sends freight, from the corner liquor store to the multinational electronics chain, finds tacked on to their bill and one which often results in higher costs to consumers... "They don't have a choice because the fuel prices have gone up quickly enough they have not been able to . . . include it in their rate quotes," said Mayne Root, executive director of the Calgary-based Alberta Motor Transport Association... AMTA represents 14,000 trucking firms, from one-man operators to industry leaders such as Mullen Transportation Inc... Root said fuel surcharges change as often as the fuel price does and as unexpectedly. It's impossible to say what an average surcharge is because that depends on when base rates were set and the deal the trucking firm was able to make with its fuel supplier... Root added surcharges are not necessarily a good solution to fuel price hikes -- in theory they cover off the trucking firm's extra costs, but the reality is that a big customer can often negotiate a better rate...

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