Higher fuel costs: MTMC's fuel surcharge gives truckers relief

HAGERSTOWN, Md. (USTCNS) -- One reason for the positive energy and bustle at the Hagerstown, Md. Distribution terminal is the Military Traffic Management Command's new automatic fuel adjustment surcharge.

With the price of diesel fuel up - the surcharge is at work.

In late May, truckers hauling freight for MTMC are getting a 2 percent boost in their fees. In other words, a $1,000 shipment rates a $20 fuel surcharge.

"The fuel surcharge really helps," said Steve Garth, senior account representative for government sales with Roadway Express, Inc.

MTMC implemented the policy last January to help shoulder the burden many Department of Defense freight and household goods carriers face with the rising cost of fossil fuels.

Retired Col. Clark Hall, former MTMC Chief of Staff, who headed the effort, said the reasons were simple.

"Of course, we want to help carriers meet the added costs," said Hall. "At the same time, we want MTMC to be a preferred shipper of choice for motor carriers."

These days, said Garth, fuel surcharges are a way of life in this business.

"If a company does not have a fuel surcharge policy, it is covered in the contract," said Garth.

Garth echoed the one word many carriers feel about the MTMC policy: consistency. No longer do carriers have to react to fuel price spikes.

"It use to be that the surcharges changed from one installation to another," said Garth. "Now it's one cost for the military and that translated into consistency for us.

"This also helps us improve accuracy and greatly reduces our billing times."

Before the amendment, carriers would calculate fuel cost based on, or separate from the their tender rates. Now, they file less-than-truckload charges without the worry of covering their increased fuel cost.

This allows carriers to remain competitive.

"We don't have the concern of repeatedly updating our fuel rates," said Garth.

Such help for the industry is timely.

"It's fair, very fair," said Garth. "Everybody is on an even playing field."

MTMC has received a positive response on the new policy from industry, said Ruth Tetreault, coordinator, MTMC Fuel Board.

"The carriers are pleased with the surcharge - and the standardization is a plus," said Tetreault.

"The (trucking industry) is satisfied with the new automatic policy - no more writing letters to receive fuel surcharges."

Tetreault reports virtually no complaints from industry.

"All is running smoothly," he said.

In the near future, Tetreault said meetings will be held with commercial and government transportation representatives to discuss any concerns resulting from the new policy.

"We received one negative comment from a small contractor who said he did not know about the new fuel policy," said Tetreault, "otherwise, we've had only positive feedback."