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David Hannon, Senior Editor -- Purchasing, 5/5/2005 2:00:00 AM
BNSF Railway unveiled plans to implement the industry's first mileage-based rail fuel surcharge in 2006 to replace BNSF's current fuel surcharge, which is assessed as a percentage of a customer's freight transportation bill. The mileage-based fuel surcharge will apply to movements that originate and terminate on BNSF and to the BNSF portion of interline shipment where each carrier bills the customer separately for their services, which combined accounts for about 75% of its shipments. The other 25% of shipments will continue to be covered by BNSF's current surcharge, the company said.
The mileage fuel surcharge also will apply to certain movements involving BNSF and one or more short lines. John Lanigan, BNSF executive vice president, said the mileage-based charge was more direct and accurate. Mileage calculations will be based on the Household Goods Carriers' Mileage Guide and the surcharge tables will reflect the fuel use intensity of four types of rail movements: coal and taconite; carload and agricultural products; intermodal trailers; and intermodal doublestack containers. The surcharge tables will be based on the on-highway retail diesel fuel prices published by the Energy Information Administration of the U.S. Department of Energy.
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