LTL truckers sued for price-fixing
Suit alleges carriers used fuel surcharges to collectively increase revenue and profits
By Dave Hannon -- Purchasing, 8/30/2007 12:49:00 PM
A small irrigation firm in California has filed a lawsuit against some of the biggest LTL trucking firms in the country, alleging they colluded to fix rates through fuel surcharges for the past four years.
According to a variety of news sources including the Kansas City Star, Farm Water Technological Services of Brawley, Calif., has named 11 of the biggest less-than-truckload carriers and is seeking class-action status for a suit filed late last month in U.S. District Court in Southern California.
According to the suit, because the LTL industry is more consolidated than many others, when carriers began implementing fuel surcharges collectively in 2003, it was unfair to shippers.
The following LTL carriers are named in the suit:
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YRC
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FedEx Freight
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UPS Freight
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Con-way
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Arkansas Best
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Averitt Express
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Jevic Transportation
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New England Motor Freight
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Old Dominion Freight Line
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R+L Carriers
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Saia
The David and Goliath situation is reminiscent of a May case where DustPro, a small Phoenix-based manufacturer of soil stabilizers has filed a federal lawsuit in New Jersey seeing class action status, claiming that five U.S. railroads colluded on prices of fuel surcharges.
See also: FedEx Freight cuts fuel surcharge
WHAT DO YOU THINK?
Are index-based fuel surcharges from LTL carriers the same as price fixing? Use the READERS' RANT/Post a comment tool below to provide your thoughts.
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