NEWS RELEASES
NEWS RELEASES
August, 1999
FOR IMMEDIATE RELEASE:
FUEL PRICES RISING AGAIN - MOTOR CARRIERS ANNOUNCE FUEL SURCHARGES
Fort Erie, ON – August 13, 1999 - The Freight Carriers Association of Canada (FCA) monitors fuel prices paid by general freight carriers across Canada on an ongoing basis. In recent months carriers have experienced steep increases in diesel fuel prices with some carriers incurring increase greater than 20%.
A similar situation exists in the US and the major LTL carriers have implemented fuel surcharges (currently at 1.0% on all shipments--US Domestic as well as between Canada and the US). Many other carriers are following suit.
FCA’s fuel surcharge calculation, using industry average fuel cost increases and industry average fuel to revenue relationships, result in carriers needing an additional 1.0% on LTL shipments and 2.3% on Truckloads to offset their fuel cost increases. Many carriers have paid larger increases and/or have higher percentage of fuel costs than industry averages (depending on length of haul and average load factors) and they require higher fuel surcharges to recover their cost increases.
Fuel price volatility is expected to continue and FCA’s Tariff Advisory Committee is recommending motor carriers implement a fuel surcharge to offset the increase in fuel costs as soon as possible. The FCA has stepped-up its fuel price monitoring and is keeping all shippers and carriers who have so requested informed of all updates on a weekly basis.
The FCA represents over 90 general freight carriers in matters related to economics, costing, pricing and finances, as well as industry 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 motor carrier executives elected by the membership to monitor the industry’s financial condition and make recommendations.