Monday, July 26, 2010

BNSF resets fuel surcharge base

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BNSF late Monday announced that the strike price, the Highway Diesel Fuel (HDF) price at which BNSF will assess a fuel surcharge, will be reset from $1.25 per gallon to $2.50 per gallon. This change, BNSF said, reflects current fuel pricing trends which on a sustained basis have averaged above $2.50 since 2005.

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The change applies to BNSF’s mileage-based and percent-of-revenue fuel surcharge programs for Agricultural Products, Industrial Products, Coal, and Automotive shipments beginning next January. Intermodal shipments will not be affected, BNSF said.

Underlying base rates will be appropriately adjusted to reflect the new strike price.

“Based on continual monitoring of our fuel programs and input from our customers, BNSF is not only rebasing, but will also develop and institute a program that compensates our customers when HDF falls below the strike price for an extended period,” said John Lanigan, executive vice president and chief marketing officer.

Tables reflecting the new strike price and other program details are available on the BNSF website at www.bnsf.com/customers/fuel-surcharge/. BNSF said its sales and marketing representatives will provide customers with additional details as they become available in the coming months.