The TRUCC Act S 2910

United States Senate ^ | 5/19/08 | papasmurf

[papasmurf]

 

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TRUCC Act (Introduced in Senate)

S 2910 IS

110th CONGRESS

2d Session

S. 2910

To require brokers to disclose and pay independent truckers for any fuel surcharges received from shippers that relate to fuel costs paid for by the truckers.

IN THE SENATE OF THE UNITED STATES

April 24, 2008

Ms. SNOWE (for herself and Mr. BROWN) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

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A BILL

To require brokers to disclose and pay independent truckers for any fuel surcharges received from shippers that relate to fuel costs paid for by the truckers.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Trust in Reliable Understanding of Consumer Costs Act' or the `TRUCC Act'.

SEC. 2. DISCLOSURE AND PASS THROUGH OF MOTOR CARRIER FUEL COSTS.

(a) In General- Section 14102 of title 49, United States Code, is amended by adding at the end the following:

`(c) Disclosure and Pass Through to Cost Bearer- A motor carrier, broker, or freight forwarder, providing or arranging truckload transportation or service using fuel for which it does not bear the cost, shall provide to the person that bears the cost of such fuel--

`(1) a payment in an amount equal to the charges, invoiced or otherwise presented to the person directly responsible to the motor carrier, broker, or freight forwarder, which relate to the cost of the fuel; and

`(2) at the time payment is made under paragraph (1), a written list that specifically identifies any freight charge, brokerage fee or commission, fuel surcharge or adjustment, and any other charges invoiced or otherwise presented to the person described in paragraph (1).'.

(b) Billing and Collection Practices- Section 13708(b) of title 49, United States Code, is amended to read as follows:

`(b) False or Misleading Information- No person may cause a motor carrier, broker, or freight forwarder to present false or misleading information on a document or in an oral representation about the actual rate, charge, or allowance to any party to the transaction or transportation.'.

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[papasmurf]

This bill has been introduced by Snowe & Brown.

I would really like to hear FReeper's learned opinions.

BTW, I don't do much posting and I'm not very good at keywords. So, if you can, please add pertinent keywords.

[Myrddin]

This sounds like a response to cases where goods are shipped by truck and the driver ends up losing money because the fuel costs exceeded the reimbursement rate. There's lots of independent drivers parking trucks at the current time because the rates aren't sufficient to cover the actual costs. The parked trucks alone should be sufficient inducement to get shipper's to adjust rates to keep pace with actual costs. This legislation may just result in forcing shippers to be more agile about doing those adjustment or leaving their goods on the dock.

[aft_lizard]

Ahhh, well on the one hand it is great to help the truckers out but on the other I really do not like the government to step in and tell companies how they should operate, the market place can and should dictate what the truckers will be compensated with.

[papasmurf]

Truck loads, on the spot market, are negotiated per load between the trucker and the intermediary, usually a broker of property.

The argument here is that truckers are being taken advantage of because they have no knowledge of the negotiations between the broker and the manufacturer or shipper of goods. Therefore, they claim, they can’t make a sound, or informed, business decision.

OTOH, brokers say the trucker should know what their costs are, and demand the rate they need to be profitable, or simply decline to haul the load.

In that the truckers are arguing for full disclosure, which they say this bill is being amended to reflect, some argue back, that-that amounts to giving away trade secrets.

In order to have disclosure, the broker would have to disclose who his sources are. That’s a very touchy subject, as brokers work on new customers for years, sometimes, before ever being entrusted with a load.

Now, the trucks feel they should be allowed to have all of that information and the right to solicit business directly with the brokers customer.

[papasmurf]

Though you might like to comment on this.

Thanks.