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MTMC RAISES MOTOR CARRIERS? FUEL SURCHARGE

MTMC RAISES MOTOR CARRIERSÆ FUEL SURCHARGE

   The U.S. Military Traffic Management Command, the military's surface transportation and logistics unit, said it increased its fuel surcharge rate paid to motor carriers to a record 5 percent earlier this month.

   Motor carriers receive the surcharge to offset rising fuel prices. The fuel adjustment is pegged to the national average price of diesel fuel, which has soared from about $1.15 at the end of 2001 to $1.72 for the week ended March 17.

   MTMC's rate in February was 3 percent when the average cost of diesel fuel was $1.54.

   Trucking companies cannot always get customers in the private sector to agree to pay extra to ease the cost burden from rapid fuel price swings, but are ensured compensation by MTMC. The transportation command automatically readjusts the surcharge rate each month.

   MTMC said that by giving its motor carriers cost predictability it is ensuring that its cargo will be picked up and delivered on schedule.