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Rail News: Rail Industry Trends

BNSF rebases fuel surcharge


Yesterday, BNSF Railway Co. 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. 

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 January 2011. Intermodal shipments will not be affected.

This change reflects current fuel pricing trends, which on a sustained basis have averaged above $2.50 since 2005, according to a BNSF prepared statement.

Underlying base rates will be 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 BNSF's website.

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More News from 7/27/2010