If not for a fuel surcharge, many trucking companies, namely smaller ones, would likely not be able to withstand the rising cost of diesel fuel, James Steed of Steed Standard Transport told the Toronto Sun.
Like all other parts of the economy, the trucking industry is facing dramatically higher fuel costs this year, but many are able to pass along the increase in the form of a fuel surcharge to customers.
“Just in the last week, fuel has gone up three or four cents a litre since last Friday,” said James Steed, who runs Steed Standard Transport in Stratford.
Steed’s family-run business relies on the industry surcharge to stay afloat.
“A carrier just can’t absorb those costs with the fluctuating. It would put us out of business if we didn’t have a fuel surcharge.” Steed explained. “That’s the key part of dealing with the ups and downs of fuel pricing.”
“You just wouldn’t be able to survive,” said Steed. “The system works. If it didn’t, I wouldn’t be here to answer the phone. Seriously.”
Fuel is considered the second biggest cost for trucking companies — after labour, Marco Beghetto of the Canadian Trucking Alliance, told the Sun.
Beghetto says the surcharge system keeps companies functioning.
“The markets are now convinced that we are heading towards an energy crisis,” said Dan McTeague of Canadians For Affordable Energy.
“And we are now seeing the first effects of an energy crunch.”
Full story here.