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TRUCKING SURCHARGE * USA: Old Dominion and ABF Freight will charge shippers extra in California
* California - Shippers face trucking surcharge, to move freight in California in the wake of new labor rules
--- Two large trucking companies have started charging shippers extra to move freight in and out of California, where they say new labor regulations are raising the cost of doing business. The nearly $6-per-shipment surcharge, levied by ABF Freight System Inc. and Old Dominion Freight Line Inc., comes after California this year began requiring trucking companies to pay drivers for time spent refueling, on rest breaks and other periods. Trucking companies typically pay per mile driven, and industry groups say calculating additional wages in California add to the already elevated cost of moving freight in California. The state is home to the country’s two busiest ports, as well as some of the strictest labor protections and environmental standards. The new labor rules are intended to provide “basic wage protections for workers in the trucking industry,” said Christine Baker, director of California’s Department of Industrial Relations. However, industry allies in Congress have introduced bills that would prevent states from applying regulations like California’s to truckers. Old Dominion’s surcharge is “intended to help offset only some of the ever-increasing cost of operating in the state of California,” said Chip Overbey, a senior vice president for strategic development at the company. The new labor rules raise the cost of human resources, payroll and legal services, among other expenses, he said...
(Photo AP - Old Dominion Freight Line Inc. and ABF Freight System Inc. are charging customers extra to ship freight to and from California) -- Los Angeles, CAL, USA - The WSJ, by ERICA E. PHILLIPS - May 6, 2016
Labels: freight costs, surcharges, trucking industry news USA
posted by Unknown @ 6:18 AM
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