Overdrive

April 2015

Overdrive Magazine | Trucking Business News & Owner Operator Info

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VOICES CHANNEL 19 6 | Overdrive | April 2015 Visit Senior Editor Todd Dills' CHANNEL 19 BLOG at OverdriveOnline.com/channel19 Write him at tdills@randallreilly.com. There's a double-edged-sword aspect to fuel's recent price decline: Fuel surcharge amounts also have declined. For owner-operators using JZWSMZ[_Q\PN]MTXZQKM[ZMÆMK\MLQV the freight rate, we've been seeing total spot-market rate averages de- KTQVMUWZMUIZSMLTa\WWZMÆMK\QVO fuel's fall. Cheaper diesel, however, isn't the only reason for falling surcharg- es. Some carriers and shippers, if watchers are correct, are adjusting fuel surcharge approaches as fuel mileage improves. Surcharges often are charged/collected at a per-mile ZI\MJI[MLWV\_WXZQUIZaÅO]ZM[" the U.S. Department of Energy's av- erage fuel price (and how much that average extends above a base price, often $1.25) and the carrier's base miles per gallon, often 5 or 6 mpg. Gordon Klemp of the National Transportation Institute told Overdrive Editorial Director Max Heine that many carriers' contracts with ship- pers are seeing that base mpg rise QV\IVLMU_Q\PÆMM\N]MTMKWVWUa 5ISQVOIVM`\ZILQUMWٺWN\PM surcharge by averaging a better mpg becomes less likely for leased own- er-operators. About 3 in 4 readers who use a base mpg in their fuel surcharge KITK]TI\QWVZMXWZ\\PMQZÅO]ZM\WJM between 5 and 7 mpg. Using a mpg ÅO]ZMQVKITK]TI\QVOI[]ZKPIZOM some commenters noted, isn't the only method. One independent gave the example of percentage of the freight bill on LTL loads, adding: "Shippers have gotten pretty savvy about this subject. … What's always been interesting is the resistance by shippers to increasing base rates in lieu of reducing fuel surcharges." Sound familiar? Weigh in on the subject in the Feb. 24 post on the blog. Poking around Overdrive's SoundCloud channel one day, I realized that a lot of artists I'd covered in my Channel 19 blog were represented there. These ranged from trucking troubadours Tony Justice, Bill Weaver, Keith Sampson, Howard Salmon and Jan McCarter to non-trucking songwriters Noah Collins of the Cumberland Collective, Lindsay Lawler, Erich Mc- Mann and recent country sensation Sturgill Simpson. Our new "Music to truck by" play- list unites some of these artists, and more, for your listening pleasure in a regularly updated package. For good measure, Overdrive's music-related pod- casts are included, such as last year's Trucker Talent Search performances, samples of tracks from Justice's "Ap- ple Pie Moonshine" record, Salmon's recent "Who Would They Look Up

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