NEWS RELEASES
April 19, 1996
MOTOR CARRIERS ANNOUNCE FUEL SURCHARGE
A sharp increase in fuel prices is creating havoc for the trucking industry causing numerous carriers to implementfuel surcharges.
Fuel costs represent about 7.5% of total operating costs for LTL and 18% for TL carriers. The Freight Carriers Association of Canada (FCA)’s fuel survey shows that on average, prices have increased 12.6% since November. Carriers on average need an additional 1% on their LTL and 2.3% on their TL revenue to offset the increase. The amount of increase, as well as the fuel to revenue figures used to calculated these figures, are based on industry averages. Many carriers are in fact suffering greater price increases or have a higher percentage of fuel costs (especially long haul carriers), than the industry average, necessitating even higher fuel surcharge percentages.
The Tariff Advisory Committee of the FCA is recommending that motor carriers implement a fuel surcharge in order to offset the increase in fuel costs. FCA will continue to monitor fuel prices keeping the industry informed of changes.
The Freight Carriers Association of Canada (FCA) represents over 100 general freight carriers in matters related to economics, costing, pricing and finances, as well as motor carrier statistics. The FCA, whose members operate in all Provinces of Canada, has been serving the trucking industry for more than half a century. The Tariff Advisory Committee (TAC) is composed of executives elected by the membership to monitor the industry’s condition and make recommendations.