National association concerned for
independent truckers and rising fuel costs

(Grain Valley, MO, March 14, 2008) – Many members have contacted the Owner-Operator Independent Drivers Association (OOIDA) reporting how the dramatic rises in fuel prices are a hardship for their businesses, asking about rumors of strikes, and for other information to help in dealing with what is becoming to them a severe crisis. The Association has been tackling the issue on a variety of fronts by addressing those questions, giving advice to members, pursuing legislation and educating the public about how shipping costs affect them at the consumer level.
Diesel fuel, the largest single cost for nearly all small business truckers, is hovering near an average price of $4 per gallon in about 17 states and has topped that amount in others.
“We have had many discussions internally as an association and shared our own frustrations for not being able to provide fast, easy answers to skyrocketing fuel costs,” said Todd Spencer, executive vice president. “But we have also certainly been reviewing a variety of options, including legislation on the national level. Lawmakers need to know what’s going on in trucking, how devastating this record hike in fuel prices is for 90 percent of the nation’s fleet.”

The Association contends there is a serious disconnect in understanding how trucking works.

“They need to know that too often shippers pay higher amounts for shipping when fuel prices are high, but that money doesn’t trickle down to the person actually paying the higher fuel costs,” he stated. “This has needed to change for a long time. Now it’s critical.”

But legislative efforts may not provide the answers needed for the short term. In light of that, OOIDA is telling members to take control of the things they can.

“We are encouraging members to be fully aware of all costs and expenses, and watch closely how this relates to what they should accept for taking a load,” said Spencer.

As to how the rise in diesel fuel affects the general public, the Association wants to clarify that increases in the price of consumer goods that are being attributed to shipping costs are not because of truckers. Truckers are often not receiving those additional fuel surcharges that are being charged to shippers.

The Association has also received calls from media about rumors of strikes or shut downs and sees those declarations primarily as expressions of frustrations that have been building during the past year.

“We’ve been hearing from truckers that have stopped driving for more than three months. They’ve made the decision to not operate when it’s not economically profitable,” explained Spencer. “That is their choice to make. These are independent businesses not covered by collective, bargaining agreements. We don’t tell them what to do and we don’t tell them what not to do.”

The Association was founded in the 1970s when the nation saw nearly 100 percent of truckers participating in strikes, but those events did not lower fuel prices.

“They did result in the temporary implementation of a mandatory fuel surcharge, however, we wouldn’t see that same result today,” commented Spencer. “In the 70s, the ICC (Interstate Commerce Commission) was still in place and rates were regulated. They are not regulated today and there is no government agency that could simply institute a rate increase or surcharge.”

OOIDA has also reached out to the Bush administration, asking them to immediately cease the diversion of oil supplies to the Strategic Petroleum Reserve and instead allow the product to directly enter the marketplace. The Association has also asked that the administration use its authority and influence to ensure that American fuel producers and refiners cease exports of biodiesel products to other nations.

In communicating with members, OOIDA is emphasizing the need to take back as much control as they can.

“Freight that doesn’t pay enough should be left at the dock,” Spencer said in closing. “Truckers must regain the ability to set their own rates back from the brokers, carriers and shippers. Rates will only go up if truckers refuse to haul cheap freight.”