transponder fees doubled for 2017, Surprise !

[martinetav]

Anyone else here fall on the floor when they saw that transponder fees went from $205/truck to $401 USD/truck.
For you brokers who are not aware, each truck must have a transponder which identifies each vehicle as they arrive at the border. This fee is paid annually and is meant to cover FDA costs. This fee is not limited to trucks that haul merchandise that is inspected by the FDA. ALL COMMERCIAL VEHICLES that cross the US border from Canada to the US pay this transponder fee every, year per truck.

 

[ranger_dispatch]

They've been $401 since last year my friend

 

[Rob]

Yes if you got in early last year it was 205 after Jan 1 it was 401. I do believe there was a thread going about it in Dec 2014. Still a kick in the ____s !

 

[martinetav]

They've been $401 since last year my friend

No, we did the early bird thing in November I think it was and paid 205. I just forgot that it happened last year

 

[Salma]

Is there anything that hasn't increased for 2017??!!
@martinetav That transponder fee increase was indeed painful!

 

[martinetav]

Is there anything that hasn't increased for 2017??!!
@martinetav That transponder fee increase was indeed painful!

Everything but the rates it would seem

 

[loaders]

I don't think anyone would be upset if freight rates had to go up as a result of this transponder increase. Let's see.....$200 divided by an average of 200,000 miles per year = 1/10th of one cent per mile increase. A 2000 mile trip would need an increase of $2.00. I have no problem with that. Just fiddling with the numbers.

 

[Rob]

I don't think anyone would be upset if freight rates had to go up as a result of this transponder increase. Let's see.....$200 divided by an average of 200,000 miles per year = 1/10th of one cent per mile increase. A 2000 mile trip would need an increase of $2.00. I have no problem with that. Just fiddling with the numbers.

Typical broker screwing with the numbers. 200K miles a year? I will take all the single drivers you have that can do that legal..



( tongue is in cheek here folks don't need a Friday shit storm)

 

[martinetav]

I don't think anyone would be upset if freight rates had to go up as a result of this transponder increase. Let's see.....$200 divided by an average of 200,000 miles per year = 1/10th of one cent per mile increase. A 2000 mile trip would need an increase of $2.00. I have no problem with that. Just fiddling with the numbers.

One day you'll only have the big companies to deal with and then you might just miss us... OH wait, then they won't need you either...

 

[loaders]

My point gentlemen, was merely to point out that a $200.oo increase to one of the many, various components that make up the calculations for freight rates, is rather negligible when you consider the total miles per truck/per year. If your truck only averages 50K per year, the increase represents 4/10ths of one cent per mile and the change to the 2000 mile trip is now $8.00. Don't get me wrong, no one likes to see any of their fixed costs go up, carriers and brokers alike. Yes Martinetav, I would be very upset if the only carriers I could source from were the large, impersonal conglomerates. We receive a higher level of service from small to midsize carriers and they are always our first and preferred call. If any carrier feels that the rates being offered to them are insufficient, they certainly have the option to refuse. There are many things in this industry that we all can complain about, but I am sure you agree, this transponder increase might not be at the top of the list. In other words, don't be surprised if the broker/customer you are dealing with does NOT say " what a minute, that $700.00 rate we just agreed on should actually be $708.00 due to the transponder fee increase."

 

[martinetav]

loader, that is per truck. Was going to waste my time answering more, but can understand that I'm wasting my time because you seem to have all the answers and know all of the solutions. I could also have given you a list of the price hikes we have had to absorb but that would be a waste of time also. You like to diminish our value. So be it. Don't know the last time you dished out cash to be able to work. we carriers have to do it every time there is a lul in freight offerings. The ELD are going to change the face of transport and you will probably find that a lot of the small carriers you use won't be there anymore. I'm also sure that such an insignificant cost raise would be less insignificant if it were you having to bare it. You should stop wearing those blinders. If you don't look at the whole then you are not offering complete transportation services...

 

[Salma]

There are many things in this industry that we all can complain about, but I am sure you agree, this transponder increase might not be at the top of the list.

Since the original post was specifically only about the doubling of the transponder cost, I don't believe the point @martinetav was making is that this increase is "at the top of the list" of industry concerns. This discussion has gotten WAY off course.

We are a small carrier and $400 USD per truck IS a hard pill to swallow. Heck, it's a hard hit for a carrier of any size......

 

[MarkD]

If you don't want the upfront expense of the transponder your driver can go inside and pay $13.05 each southbound crossing. This method can be a pain but they only ask you to go in and do it about 40% of the time. You can also prepay this $13.05 online and not have to go in. The most my trucks would cross in a calendar year year would be 2o so this is the route I've chosen.

 

[Salma]

Since this discussion is in the "moan and groan" section anyone can complain about anything they want.

 

[loaders]

Martinetav. Do I have all the answers...no. Do I have all the solutions....no. Do I like to diminish your value.....absolutely not. In a previous life, I owed and operated a fleet of over 50 power units and 100+trailers, so the significance of any increases to my fixed costs is not lost on me. Again, my point was merely to bring some perspective to the cost of the transponder increase as it applies to the "complete transportation service". Yes, any increase to your operating cost should be reflected in the rates that YOU offer. The onus is on you, as the provider of the service, to make sure you are being properly compensated for your work. As a purchaser of transportation services, my main concern is good value for proper service. That does not mean lowest price. As to who is wearing the blinkers, I might suggest that you sir, try to stop viewing all freight brokers as cold, unreasonable entities trying to gouge every last cent out of poor, innocent carriers and their downtrodden, exploited drivers. I am afraid it is not as black and white as you seem to think.