Rev.Vassago
May 15th, 2006, 00:15
I had heard that this was going to happen, and now it has. I just wonder how long it will be until it spreads through the entire industry.
A recent special meeting of the Rates and Tarriffs Subcommittee of the Household Goods Carriers' Bureau Committee was held in response to growing criticism regarding the current level of fuel surcharge.
In an effort to make the tarriff pricing more fair, the RTS voted to reduce the fuel surcharge and to offset that reduction with a 3.5% general rate increase. The fuel surcharge schedule format has not changed, but the starting base price will be $1.40 per gallon and the surcharge increments will be based on a change of $0.15 per gallon. The general rate increase will affect all tarriff items except valuation and fuel surcharge with the intent that, overall the two rate changes will offset. The tarriff changes are scheduled to become effective for all shipments loading on or after May 15, 2006.
In plain English, this means that they are going to reduce the fuel surcharge, and change how it is calculated, but will offset it by increasing the rates.
I know there have been many here who have been calling for this all along. I wonder if it will bleed out into the general freight industry, or if it will stay within the HHG industry.
BTW, my carrier has filed a petition to not change to this new plan at this time, until they have had time to study it further (i.e. find out if they can convince enough of their customers to accept an increase in the rates, to reduce the FSC).
A recent special meeting of the Rates and Tarriffs Subcommittee of the Household Goods Carriers' Bureau Committee was held in response to growing criticism regarding the current level of fuel surcharge.
In an effort to make the tarriff pricing more fair, the RTS voted to reduce the fuel surcharge and to offset that reduction with a 3.5% general rate increase. The fuel surcharge schedule format has not changed, but the starting base price will be $1.40 per gallon and the surcharge increments will be based on a change of $0.15 per gallon. The general rate increase will affect all tarriff items except valuation and fuel surcharge with the intent that, overall the two rate changes will offset. The tarriff changes are scheduled to become effective for all shipments loading on or after May 15, 2006.
In plain English, this means that they are going to reduce the fuel surcharge, and change how it is calculated, but will offset it by increasing the rates.
I know there have been many here who have been calling for this all along. I wonder if it will bleed out into the general freight industry, or if it will stay within the HHG industry.
BTW, my carrier has filed a petition to not change to this new plan at this time, until they have had time to study it further (i.e. find out if they can convince enough of their customers to accept an increase in the rates, to reduce the FSC).