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H.R. 5997, The Fairness in Trucking Transactions Act
- This item is from the 110th Congress (2007-2008) and is no longer current. Comments, voting, and wiki editing have been disabled, and the cost/savings estimate has been frozen.
Comparing revision saved on May 12, 2008, 19:30:39 (webmaster), with revision saved on June 10, 2008, 19:31:11 (webmaster):
H.R. 5997 would amend title 49, United States Code, to require a motor carrier, broker, or freight forwarder that collects a fuel surcharge to pay an amount equal to the surcharge to the person that bears the cost of the fuel.
== Detailed Summary ==
<summary>
(LogFairness in Trucking Transactions Act - Amends federal transportation law to editrequire certain fuel cost reimbursements by a motor carrier, broker, or freight forwarder providing or arranging truckload transportation or service using fuel for which it does not bear the wiki and becost.
Requires such a motor carrier, broker, or freight forwarder to reimburse persons (truckers) that do bear fuel costs for any such costs they have paid.
Prohibits any person from causing a motor carrier, broker, or freight forwarder to present false or misleading information on a document or in an oral representation about the firstactual rate, charge, or allowance to provideany party to the transaction or transportation.
Sets forth additional civil penalties (including the award of treble damages by a detailed summarycourt) for a motor carrier, broker, or freight forwarder that fails to make a fuel cost payment to the cost bearer.
Provides for the confidentiality of information obtained by the bill!)Secretary of Transportation or the Surface Transportation Board in investigations of alleged violations of the payment of fuel costs.
</summary>
<!--Leave in the 'summary' tags if you want the latest summary from the Congressional Research Service automatically to replace the text between the tags once it becomes available. -->
== Status of the Legislation ==
<status>
Latest Major Action: 5/9/2008: Referred to House subcommittee. Status: Referred to the Subcommittee on Highways and Transit.
</status>
<!-- Leave in the 'status' tags if you want the latest reported status from THOMAS automatically to replace the text between the tags once it becomes available. -->
== Points in Favor ==
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== Points Against ==
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Visitor Comments
ANNONIMOUS
June 10, 2008, 12:06pm (report abuse)I am voting for this bill because I own trucks that are leases with a company that does not pay the full fuel surcharge, and that is no ware close to fair. They should not be allowed to keep any of the fuel surcharge. We should not have to pay to keep their company running while they are raking in millions and we are living week to week. PLEASE VOTE FOR THIS BILL
5mouths2feed
June 14, 2008, 9:05pm (report abuse)In all reality this bill should not be needed since THEFT is already illegal. This bill has nothing to do with undermining capitalism that is what frieght rate haggling for. FSC is to pay for fuel not brokers wages. I fully support this bill. Anyone against this has something to hide.
Matt - OverTime
July 10, 2008, 3:59pm (report abuse)Yes, I vote FOR this bill to be passed!
UnitedCDL.org
United We Stand - Divided We ROLL
Bill
July 22, 2008, 2:32pm (report abuse)Truck Drivers: You are shooting yourselves in the foot. Freight is a free market. Rates are driven by the market, not by brokers. Brokers make the market more efficient. Access to more loads allows you to lower your empty miles and increase asset utilization. Brokers can't control supply and demand. Brokers have a vested interest in the health of the whole industry. This bill will drain profits for EVERYONE in the industry. This is not rocket science, it is basic first year economics.
roberto
July 24, 2008, 2:21pm (report abuse)how is it that all people pay more
for stuff goverment pay more for
stuff that we the people give to
goverment . whats wrong with trans-
perance pass all bills.
s2910 hr5934 hr5977
Ross
July 25, 2008, 8:56am (report abuse)Supply and demand works when everybody is dealing honestly. Look at what's happening in the oil market now. There is a 2 million barrel a day surplus, demand is going down, but the speculators are buying up future production on paper to increase the price. The people doing this have lost their money in the mortgage meltdown and are trying to make their money on OUR backs.
Same thing in trucking. As companies go bankrupt demand for drivers increase because goods still have to be moved. Are rates increasing according to supply and demand? NO. Why? Because middlemen are manipulating the price. Keeping fuel surcharge and screwing the drivers. When "free" markets don't obey law of supply and demand - FOLLOW THE MONEY!
Misty
August 3, 2008, 4:36am (report abuse)I wonder if the government would like to know that brokers were pimping out those 7100.00 dollar FEMA loads for 2400.00......Taxpayers money......What we really need besides this bill is bring the dirty broker world to real-estate....Make them tell us as carriers the cost of their services....then we can make a informed decision if they are a good tool to business or a mere rip off....
Many brokers are sitting out here taking 40-50% of loads, deceiving shippers and carriers....That hurts our economy....
If we have a watch dog on here....go check out who moved those FEMA loads and for what price, even the government may find they paid the middle guys big bucks and the trucks little or nothing.......then you'll know who is totally screwing who out here....
Then call Landstar and ask them how they can vacation in Marcos Island in 07 and give 2 trucks away FREE, while guys are out here trying to hang onto one truck....
Brokering has become a big Scam with no negotiation.
The Voice of Reason
August 6, 2008, 9:02am (report abuse)So brokers make 40-50% per load? That'd be nice. Average gross margins are ~17% and average net margins across all brokers are closer to zero. I don't know what crazy Landstar nonsense you are referring too, but Landstar has revenues of over $2.5 billion. I sure hope they can afford to give away a few free trucks.
I'm sure some FEMA loads had high margins, but they were also high risk loads for brokers to take. Some made money, some lost. It was impossible to find trucks at that time.
Brokers can't manipulate the price. It's basic economics, and why on earth would we want to screw drivers? It's called the LAW of supply and demand, and it doesn't make exceptions for brokers.
Paul
August 20, 2008, 2:03pm (report abuse)Misty,
Your comments are foolish. You make all truckers and drivers look bad.
When carriers charge $4.00 a mile is that fair?
Frederick (SilverSurfer) Schaffner
August 24, 2008, 10:05am (report abuse)There apparently seems to be some miss-understanding to this issue. The fuel surcharge was created after the '73 trucker strike. This legislated the person paying the fuel bill was to receive the fuel surcharge, only it was neglected to protect the person paying the fuel bill with transparency to ensure they weren't getting robbed. These TRUCC bills corrects that mistake from '73.
This is an issue of companies and brokers keeping a portion, or all, of a charge which is dedicated to the person paying the fuel cost. Fuel surcharge is not a freight rate. It's tacked onto the bill based upon fuel price variances. Brokers don't pay the fuel costs, which is what the surcharge is for, and the law states the surcharge portion of the freight bill goes to the person paying the fuel costs.
I vote for passage of these bills. It's time to protect professional drivers...the backbone of our economy.
Safe Trails and God Bless,
www.theamericandriver.com
allen
August 24, 2008, 11:01am (report abuse)The Voice of Reason
quote;So brokers make 40-50% per load? That'd be nice. Average gross margins are ~17% and average net margins across all brokers are closer to zero. I don't know what crazy Landstar nonsense you are referring too, but Landstar has revenues of over $2.5 billion. I sure hope they can afford to give away a few free trucks.
I'm sure some FEMA loads had high margins, but they were also high risk loads for brokers to take. Some made money, some lost. It was impossible to find trucks at that time.; end quote.
high risk my aunts pitutie , they are government loads and the government pays their bills,
and 17% margins with o% net come on no onw buys lincolns or Caddys on 0% profits except of course if they be on welfare.
if that is all you are making you need to go back to being a used car salesman.
Jamie
September 10, 2008, 8:22pm (report abuse)This issue should be turned down
just like every other unconstitutional law the Federal Gov. has been or is trying to pass.
what the goverment needs to do is return our hard earned money to us, they steal money in the form on income taxes, and more.
Have they ever heard of the Revolution.....
Taxation was a big part in its happening.
j tava
October 1, 2008, 9:33pm (report abuse)screw you all...i own a company and i love my money...you'll get what i give you and like it
tired2
October 8, 2008, 11:26pm (report abuse)j tava, that was spoken by a true thief in the business,should this legislation pass you will be one of the first to go.seems your TIA spokeman didnt do a very good job of snowballing the transportation committee into believing his endless lines of garbage.
Banker
October 20, 2008, 2:53am (report abuse)You truckers should have never given your banking to millionaires in this industry. Go to Wal-Mart and see if they would like to extend you some groceries? You have investments, capitalized yourselves, then you went and put your banking right in the hands of millionaires by extending these rich guys your little bit of credit. Why do you think someone needs to capatalize off your labor? Shippers are outsourcing as its cheaper to hire you than purchase their own trucks, then they put brokers in the mix to do their bidding, then truckers fund both these groups, and go broke.
Take your banking back, and its up front before a load is hauled on YOUR CONTRACT, not their contract.
Thats why truckers are going broke. You cannot add debt to yourselves while capitalizing millionaires. You will lose everytime, and companies will run in the Red.
tired2
October 20, 2008, 10:44pm (report abuse)banker,oh you can ASK for half up front,then you get charged a percentage of that "advance" they call it,so your still losing money.why give them even more of the freight bill? this legislation puts the negotiation back in the transactions.it also see's to it that carriers are paid for collected fuel surcharges. some of the big shippers have implemented their own fuel surcharge tables and it is to be charged seperately from the line haul.I don't hear most companies complaining about buying fuel and getting paid after the load delivers,its the lack of surcharge pass thru and the excessive brokers fee's and lack of transparency. Wal-Mart and Home Depot are retail stores,and are nothing even close to trucking except everything in those stores arived on a truck
Bullet
November 9, 2008, 3:55pm (report abuse)No, you wont give me whatever you want to give me, because I'll realize by your rate that your cheap and move on then laff the next time I see on of your loads you're trying to push and let it sit too..see, I own my own business too and i only deal with those I consider fair...as for fuel surcharges, why are they fighting to publish it if they're being honest? And as far as rates go...go sell it on the corner, two diff brokers, two totally diff rates to same shippers and receivers? come on...i was born at night but not last night...you keep your freight , theres plent out there. And maybe some day soon you wonder why your phone doesn't ring anymore..the answer is in your cracked mirror..by the way...I own my bus and my equipment
bygrace
November 12, 2008, 10:49am (report abuse)Most brokers are keeping most or all fuel surcharge and a good portion of rate. They are putting a hurt on the small trucking businesses. They are saying the customers are not giving it to them. They underbid our customers and then ask us to haul the freight. I think they know that when this act passes they will not be able to keep so much so they are getting it while they can. In the meantime rates are lower than they have ever been and a lot of companies are struggling to stay in business.