DAILY NEWS Jan 9, 2014 9:04 AM - 0 comments

Western trucking industry getting short-changed by fuel surcharges

MTA points out differences between pricing in Eastern and Western Canada

TEXT SIZE bigger text smaller text
2014-01-09

WINNIPEG, MB – Fuel prices are rising, but they're rising at different rates in different parts of the country, and the Manitoba Trucking Association (MTA) wants the industry to do a better job of explaining those differences.

The MTA is urging trucking companies and the trucking industry as a whole to take the time and inform shippers about the reasons behind the price changes.

For example, it notes that prices in Western Canada were higher in recent months due to local geographic factors—specifically a Shell plant shutdown in Edmonton, Suncor equipment failure in Fort McMurray, and a power loss incident in Edmonton.

The MTA said doing a better job of educating customers is necessary since fuel surcharges often don't reflect the rates trucking companies should be receiving, especially when the surcharges are calculated using a program based on the FCA (Freight Carrier’s Association) index—a model built only on retail diesel prices drawn from Ontario and Quebec.

The association encourages its members to explain the situation to carriers as part of the process of negotiating contracts that include temporary measures to compensate for the price differences.

The MTA also suggests the industry warn its clients that fuel surcharge rates are likely to increase in the future.


Photos

MTA uses data compiled by Kent Marketing Services Limited to show the difference in prices between Eastern and Western Canada.
Larger photo & full caption

File size: 83 KB (967px X 453px)
Caption: MTA uses data compiled by Kent Marketing Services Limit...
Monitor These Topics


Horizontal ruler
Horizontal Ruler

Post A Comment

Disclaimer
Note: By submitting your comments you acknowledge that Truck News has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *



* mandatory fields