Feds told to mandate trucking rates

[Cybergal]

Feds told to mandate trucking rates
supply chain review, Australia

The Federal Government will face intense pressure to legislate trucking rates, while the industry itself stands condemned for ignoring what a major report has called the "overwhelming" link between pay and road safety.
The report into safety and pay rates in the trucking industry, authored by Professor Michael Quinlan and Lance Wright QC for the National Transport Commission (NTC), has strongly recommended the most radical shake-up in the commercial trucking market in decades, in a major rebuff to employer groups.
The Remuneration and Safety in the Australian Heavy Vehicle Industry report, which widely consulted stakeholders including the Transport Workers Union (TWU) and employer groups, is clear in its findings: there is an indisputable link between safety and payment systems and only a regulated marketplace can correct the commercial imbalance between smaller operators and prime contractors.

http://www.supplychainreview.com.au/...36463&SiloID=0

[Brickman]

While forcing rates on shippers will undoubtedly bring up the bottom rates it will also serve to drive down the top rates.


A better plan was the truth in brokering bill they were looking at.

[RickG]

I have always felt that before deregulation was put in effect a study should have been done to determine a minimum rate that would allow a proper pay for drivers and sufficient funds to properly maintain equipment . There should have been a base rate for carriers to have to start competing at . With reasonable rates we would have safer roads with more experienced drivers with less driver turnover and less HOS and equipment violations .

[Agent86]

I DO NOT BELIVE IT!!

this is the result of the discussion we had with the NTC..

they listened! i cannot believe they listened.

i hope what we were pushing for is enacted, just mandating a minium cost recovery.

[truckermario]

I get the feeling this would be a disaster if they tried that here.

[Agent86]

things are different here, in that less destinaitions and higher costs. we get paid less than you guys, with higher fixed and ongoing costs.

diesel is at $5.70 aud a gal. a new truck starts from $230,000aud. trailers fro $70,000.
The cost recovery isnt there to even run a 70K aud truck and 30K aud trailer...

yet they want new trucks running the work...

[RickG]

Originally Posted by truckermario

I get the feeling this would be a disaster if they tried that here.

Yeah , it would be a disaster for the coolie carriers because they would have to be awarded contracts based on service , not cut-throat rates . They couldn't keep starving out smaller carriers that need a decent rate to pay a decent driver's pay and keep well maintained equipment .

[truckermario]

How do you legislate a minimum rate on a system based on performance? Even if you get $5.00 per mile, there's no guarantee you'll get X amount per week. If the carriers in the US went to the shippers and said "We're required by law to pay our drivers X amount of money so we'll have to raise our rates", the shippers will most likely ship shorter distances and try to break the law by cramming as much product onto the truck as possible. Of course they do this anyway. Everything comes back to making a profit. The customers will ultimately pass the costs onto the consumers, and this will lead to higher prices. Everytime the government tries to legislate how business is done, they always screw it up for everybody.

[RickG]

Originally Posted by truckermario

How do you legislate a minimum rate on a system based on performance? Even if you get $5.00 per mile, there's no guarantee you'll get X amount per week. If the carriers in the US went to the shippers and said "We're required by law to pay our drivers X amount of money so we'll have to raise our rates", the shippers will most likely ship shorter distances and try to break the law by cramming as much product onto the truck as possible. Of course they do this anyway. Everything comes back to making a profit. The customers will ultimately pass the costs onto the consumers, and this will lead to higher prices. Everytime the government tries to legislate how business is done, they always screw it up for everybody.

So what you're saying is truckers should keep making the sacrifice and accept low rates so prices don't go up at WalMart . And WalMart and Kroger should keep replacing experienced drivers because they make too much and move more to having their trailers moved by Schneider and U.S. Xpress .

[Agent86]

Originally Posted by truckermario

How do you legislate a minimum rate on a system based on performance? Even if you get $5.00 per mile, there's no guarantee you'll get X amount per week. If the carriers in the US went to the shippers and said "We're required by law to pay our drivers X amount of money so we'll have to raise our rates", the shippers will most likely ship shorter distances and try to break the law by cramming as much product onto the truck as possible. Of course they do this anyway. Everything comes back to making a profit. The customers will ultimately pass the costs onto the consumers, and this will lead to higher prices. Everytime the government tries to legislate how business is done, they always screw it up for everybody.

Problem is the shippers are making huge profits per trailer in a lot of cases.. just being stingy with what they hand out. and using their sheer size to unfailry compete in the market.

How do you compete with somone who decideds to take your work, for a 5% profit or less? we canot run on that.. they get volume discounts and so on.. they were alowed to get big by acts that will eventually lead to the fall of the o/o here, which will result in rate increases.. pure n simple.

I have heard of prices charged to move a trailer being 2x and more than what get pased on to those who do the work.. needless to say, thats not all the time, but it does happen.

We asked for:
Garaunteed time to settlment for work carried out
Garaunteed minimum rates ( to eliminate the loss of money on "backloads" which usually account for around half of all OTR movements..)
and a few others that escape me at present