Good Judgement Needed

Shipper and Brokers need to be alert to the real challenges facing the motor carriers around the issue of fuel and health care insurance both of which are placing many carriers in the red; and political leaders should not be interfering in the free enterprise system by proposing legislation that would mandate that brokers pass on the actual fuel surcharge paid by shippers to the Brokers.

Shipper and Brokers also need to be cognizant of the time lag between when the carrier is paying for the fuel and when they are being paid for the shipment; and the frequency of their DOE EIA updates.  With carriers unable to offset sizeable health care cost increases, the never ending waves of daily fuel spikes have brought carriers to the point where they just don’t have the cash to bridge the cost and time differentials.

Many good carriers have begun telling their customers, that do not have equitable fuel programs, they can’t continue to carry their freight.  Don’t let this happen to your company. Call and Talk to your carriers about their financial well being.  If they are running in the red, you need to be concerned for the well being and strongly consider making some concessions to keep them operational.  There is nothing to be gained from running good carriers into the ground and out of business -  especially when we consider what it takes to find and develop and good service provider. Carriers will remember those that helped them through these financially challenging times…and those that didn’t.

At the same time contact your congressional representative and explain why the government should not be interfering with the private enterprise system. Before you do, you may want to ask your broker what they are doing with the fuel surcharge you are paying them?