Carriers Must Pass DOD Surcharges to Contractors

Motor carriers doing business with the Defense Department through owner-operators must pass on any fuel surcharges under an interim rule that took effect July 29.

The rule, mandated by the defense funding law for fiscal 2009, requires carriers to pass any fuel-related adjustments through to the person bearing the cost of the fuel.

The rule is a victory for the Owner-Operator Independent Drivers Association, which has long fought for similar pass-through requirements in Congress.

In too many cases, OOIDA argues, independent drivers who pay for fuel do not receive the fuel surcharges collected from shippers by the carriers or brokers who contract them.

“DOD anticipates that the rule will benefit small entities by ensuring that fuel-related contract adjustments are passed to the appropriate party,” the department said.

The rule applies only to carriers doing business with the DOD. Comments on the rule may be submitted through Sept. 28. The department will issue a final rule.

The interim rule was published in the July 29 Federal Register.

Contact William B.Cassidy at wcassidy@joc.com.