MTMC promises military motor carriers automatic fuel surcharges.By MTMC MTMC Military Traffic Management Command (US DoD) MTMC Mount Marty College MTMC Micros-to-Mainframes, Inc. (stock symbol) MTMC Middle Tennessee Medical Center (Murfreesboro, TN) Command Affairs Motor carriers doing business with the Military Traffic Management Command A major command of the US Army, and the US Transportation Command's component command responsible for designated continental United States land transportation as well as common-user water terminal and traffic management service to deploy, employ, sustain, and redeploy US forces on a will be eligible for automatic fuel surcharges in the future. That was the promise of Maj. Gen. Kenneth L. Privratsky, Commanding General. "It is my intent that when things happen (volatile fuel prices)," said Privratsky, "The fuel surcharges take effect." The motor carrier industry was buffeted by fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. fuel prices throughout the year 2000. Prices for a gallon of diesel fuel ranged from $1.31 to $1.67 per gallon. In the past, the motor carriers incurring high diesel fuel costs faced long delays in receiving MTMC fuel surcharges. Privratsky would like to make surcharges automatic for motor carriers by linking them directly to the price of diesel fuel. To achieve that goal, the joint MTMC-Industry Fuel Board was formed Nov. 30. Members agreed to use the weekly fuel price determined by the Department of Energy as the governing national standard. "Board members agreed to establish a baseline fuel price--with a 10-cent-per-gallon margin," said Frank Galluzzo, Board Coordinator. "This means, for example, that if we establish a fuel baseline of $1.30 and the price of fuel goes above $1.40, members will automatically be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to a fuel surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. ." Industry representatives were enthusiastic. "I think it's a great idea for everyone to be on the same page--to have it automatic" said Terry Head, President, Household Goods Freight Forwarders An individual who, as a regular business, assembles and combines small shipments into one lot and takes the responsibility for the transportation of such property from the place of receipt to the place of destination. Association of America, Inc. Other support came from Dave Larson, President and Government/Military Representative of Landstar Trucking. "I think it reflects partnership," said Larson. "Here's the policy--we can live with it." The newly constituted fuel board is chaired by Col. Clark Hall Clark Hall can refer to:
"We have drafted a policy," said Hall. "We do not expect motor carriers to face increased fuel prices out of their own profit margins." Hall said the fuel surcharge is a necessity for military readiness. "We do not want drivers refusing military cargoes," said Hall. In any given year, MTMC initiates millions of truck movements. As one example, the organization directs the moves of an average of 646,000 Department of Defense service members annually. The automatic fuel surcharge idea came from a National Defense Transportation Association committee meeting in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded , in August. "Our consensus was that we should have a fuel policy that fairly compensates our industry partners when the cost of fuel rises," said Galluzzo. MTMC's Distribution Analysis Center has developed a draft fuel surcharge policy. "The fuel board intends to meet Dec. 12 to review the draft," said Galluzo. |
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