Military Traffic Management Command’s fuel surcharge adjustment
rate reached a record high March 3 as the national average diesel
price climbed to $1.753 per gallon.
adjustment rate, which motor carriers receive to offset rising fuel
prices, jumped to 5 percent. For every 10 cents the price of fuel
rises above $1.301 per gallon, MTMC pays its carriers 5 percent
of the difference between the $1.301 baseline price and the actual
price of fuel per gallon.
manages loads hauled for the military by private carriers, including
owner-operators. It acts as a transportation broker between government
shippers and commercial carriers.
first implemented a fuel surcharge in April 2001. Rates are posted
monthly and affect shipments picked up on and after the 15th of
the month through the 14th of the following month, said Robyn Hamill,
industry economist with the command's Distribution Analysis Center.
The rate in February, when the average cost for diesel was $1.542,
was 3 percent.
a policy known as TR-12, the command bases the adjustment rate on
the national average price for diesel on the first Monday of each
month, Hamill said. MTMC uses prices posted to the official Department
of Energy Web site.
policy, which stems from an agreement effective since April 2001
between the command and industry partners, will be reauthorized
for the next 12 months, said Ruth Tetreault, administrator of the
MTMC Industry Fuel Board, which wrote the original agreement.
are helping ourselves out,” Tetreault said. “We are ensuring our
cargo is going to be moved as scheduled."
program prevents industry from bearing the costs associated with
rising fuel prices, she said.
leaders tell me if there is one good thing MTMC has ever done, it
is to institute this policy," she added. “This supports the
war fighter [combat troops] and promotes readiness by ensuring continued,
timely delivery of cargo."
Rene Tankersley, feature editor