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ABF Imposes Surcharge on all Shipments to and from California

Posted April 14, 2016

Under Logistics & Supply Chain Issues

(Mark B. Solomon – DC Velocity)

ABF Freight System Inc., the less-than-truckload (LTL) unit of ArcBest Corp., has imposed a $5.92 surcharge on each shipment moving to and from California, due mostly to higher costs of compliance with state regulations, the carrier said.

The ABF tariff surcharge, which took effect April 1, is designed to offset the cost of complying with a recent addition to the state’s labor code, which, according to Eddie Sorg, ABF’s vice president of yield management, “imposes significant new burdens on employers that pay employees on a piece-rate basis.” Sorg’s comments appeared in the “TransDigest” March newsletter published by the Transportation and Logistics Council, a group of transportation attorneys and practitioners. A spokeswoman for the Fort Smith, Ark.-based company confirmed the surcharge, but declined comment on the reasons behind it.

Piece-rate pay is broadly defined as a category of pay that is tied to units of production or activities performed. As it applies to trucking, the most common type of piece-rate payment is pay per load, whether it is calculated as a fixed fee per load or as a payment based upon the mileage associated with a particular load. Click here to read more.