A joint MTMC-industry fuel board was formed Nov. 30 that will link the automatic surcharges directly to the price of diesel fuel, said Maj. Gen. Kenneth L. Privratsky, MTMC commanding general.
Fuel board members agreed to use the Department of Energy's weekly fuel price as the governing national standard, and agreed to set a baseline fuel price, with a 10-cent-per-gallon margin.
“For example, if we establish a baseline of $1.30 and the price of fuel goes above $1.40, they would be automatically entitled to a fuel surcharge,” said Frank Galluzzo, fuel board coordinator.
Col. Clark Hall, chief-of-staff, is chair of the new fuel board. He said the fuel surcharge is a necessity for military readiness.
“We do not want drivers refusing military cargoes” Hall said.
Industry representatives were supportive of the surcharge idea, which came from a National Defense Transportation Association committee meeting in New Orleans in August.
MTMC's Distribution Analysis Center has developed a draft fuel surcharge policy, and the fuel board will meet Dec. 12 to review the draft, Galluzzo said.
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now