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FCA, NATC urge carriers to update fuel surcharge percentages

FORT ERIE, Ont. -- The Freight Carriers Association of Canada (FCA) and the North American Transportation Council (...


FORT ERIE, Ont. — The Freight Carriers Association of Canada (FCA) and the North American Transportation Council (NATC) are calling on carriers to update their fuel surcharge percentages.

The organizations have reported diesel prices have increased nine per cent since June, 2004 and 23 per cent since August, 2003. As a result of this, the groups say it’s important carriers revise their fuel surcharge percentages.

The FCA’s recommended Canadian domestic fuel surcharge calculations have increased from 2.8 per cent for LTL and 6.6 per cent for TL as of Aug. 25, 2003 to 5.2 per cent LTL, 12.3 per cent TL and 13.7 per cent heavy TL as of Aug. 23, 2004. Those recommendations also include a modest increase from June, 2004 recommendations.

"The pitfalls of not revising percentages are obvious," announced FCA. "An LTL carrier with an operating ratio of 95 per cent two months ago that did not increase fuel surcharges would have had their profit eroded by 20 per cent. A TL carrier with the same 95 per cent operating ratio that did not increase its fuel surcharge would have seen a 50 per cent reduction in profit."

Carriers are urged to update their percentages by tracking diesel prices and the surcharge required to offset the price increases. The FCA also calls upon carriers to charge for all services performed including border wait times and pursuing accessorial service charges. For more information, visit www.fca-natc.org.


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