Truckload Firms Turn to Surcharges

Some truckload carriers joined their counterparts in the less-than-truckload sector in imposing rate surcharges after the average cost of diesel took another jump, with the national fuel price rising nearly 2 cents to $1.133 per gallon July 19, according to the Department of Energy.

Others carriers expect the fuel price to level off and are delaying implementation of surcharges, leaving a mixed truckload reaction to the sixth straight week of higher prices.

Big names in the LTL business — Roadway Express, Yellow Freight and Consolidated Freightways among them — have already attempted to negate the steady incline in fuel prices with surcharges (7-19, p. 1). Many consider it truckload’s turn, now that the fuel price has exceeded a widely accepted threshold.

Under TL rate formulas, a diesel price of $1.12 can be occasion for imposing surcharges, although it may get a bit complicated. While LTL carriers can point to published tariffs that outline surcharge conditions, truckload companies often have to conduct separate negotiations with each customer.

But that has not stopped some truckload haulers from imposing the fee.

For the full story, see the July 26 print edition of Transport Topics. Subscribe today.