Bill Seeks Mandatory Fuel Surcharges

WASHINGTON - May 10/05 - SNS -- A bill before the U.S. congress seeking to force commercial truckers to impose fuel surcharges on shippers for movements of all commodities and other goods is opposed by the National Grain and Feed Association (NGFA).

The group argues the House-passed version of the highway reauthorization bill (H.R. 3) has no business "dictating specific commercial terms of transportation, particularly when the marketplace has demonstrated high levels of competition to discipline behavior, as is characteristic of truck transportation," said NGFA President Kendell W. Keith. He noted that private market mechanisms already exist through which truck, rail and barge carriers recover increased fuel costs.

The mandatory truck fuel surcharge provision, sponsored by Rep. Roy Blunt, R-Mo., was added as Section 13714 of the highway reauthorization bill shortly before it was approved by the House on March 10. The NGFA is urging the Senate not to include a comparable provision in its version of the bill when it resumes floor consideration this week. The NGFA said it then will urge that it be stricken in the final version of the measure once a joint House-Senate conference committee meets to resolve differences between the two bills.

Under the House bill's provision, any contract or agreement for transporting truckloads would be required to include a provision that the payer of shipping charges also pay a fuel surcharge that is "no less than the amount of the increased cost of fuel."

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