TSA -- [ Inland Fuel Charges Fact Sheet ]

TSA Inland Fuel Surcharge:
Cost Recovery for Inland Transportation

Fact Sheet

Nearly all of TSA lines’ inland, asset-based transportation partners have implemented, announced or are expected to introduce fuel surcharges in 2005. These surcharges seek to recover sharply rising diesel fuel costs that are a major component of their business operations. Ocean carriers, as the lead logistics providers for many international shipments, must pay surcharges out-of-pocket and subsequently recover a portion from freight shippers.

In the interest of fairness and simplicity, TSA has developed a single Inland Fuel Surcharge that uses the standard diesel fuel price index (U.S. Department of Energy National Highway Diesel Price Index), and the same baseline historic diesel fuel price ($1.239 per gallon) and increments of adjustment (4-cent rise in fuel price = 0.5% surcharge increase) adopted by most vendors. The formula is applied to average fuel costs per container developed internally among TSA member lines, with proportionate surcharge pass-through levels set for local and regional store-door trucking, and for long-haul intermodal minilandbridge, inland point (IPI) and reverse inland point (RIPI) moves.

The surcharge is adjusted monthly, based on an average of weekly DOE on-highway diesel fuel prices during the month ending 30 days prior to the effective date of the adjustment. This is done to ensure at least 30 days' advance notice to the shipping public of any scheduled changes. As an example, a May charge level is determined by average diesel fuel prices during the previous March.

Instructions are provided at right for tracking weekly fuel prices and forecasting upcoming charges. Elsewhere in this web site can be found current and scheduled Inland Fuel Surcharges, and a calculator page including posted weekly prices and the surcharge conversion matrix shown at right.

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CALCULATING THE INLAND FUEL SURCHARGE

To calculate in advance the next Inland Fuel Surcharge adjustment:


	1. *Obtain the weekly DOE Weekly Retail On-Highway Diesel Price Index* by accessing the Department’s web site, www.doe.gov. Click “Energy Prices and Trends,” then “Gasoline and Diesel Prices,” then “On-Highway Diesel Prices,” then “Weekly Retail Prices” and use the U.S. price figure. Historic information is also available on that page by clicking the menu item at right, “Prices for the last 53 weeks,” Or, gain direct access from this page by choosing one of the links below: > Current Weekly Index > Historic Information

2. Average the U.S. prices for the month ending 30 daysbefore the effective date of the next adjustment.

Examples:
Jan IFS - Weekly prices for preceding Nov

Feb IFS - Weekly prices for preceding Dec

Mar IFS - Weekly prices for preceding Jan

Apr IFS - Weekly prices for preceding Feb

May IFS - Weekly prices for preceding Mar

Jun IFS - Weekly prices for preceding Apr

Jul IFS - Weekly prices for preceding May

Aug IFS - Weekly prices for preceding Jun

Sep IFS - Weekly prices for preceding Jul

Oct IFS - Weekly prices for preceding Aug

Nov IFS - Weekly prices for preceding Sep

Dec IFS - Weekly prices for preceding Oct

Please note that calculations made earlier in the monthly period will be less reliable.


3. Calculate the Inland Fuel Surcharge It will be adjusted monthly based on diesel fuel price trends as shown above, according to the matrix below:
Average DOE	Inland Fuel Surcharge
Diesel Fuel Price US$/Gallon	WC Group4/ EC Local SDD	Other Intermodal, incl. RIPI
$0 – 1.239 $1.24 – 1.279 $1.28 – 1.319 $1.32 – 1.359 $1.36 – 1.399 $1.40 – 1.439 $1.44 – 1.479 $1.48 – 1.519 $1.52 – 1.559 $1.56 – 1.599 $1.60 – 1.639 $1.64 – 1.679 $1.68 – 1.719 $1.72 – 1.759 $1.76 – 1.799 $1.80 – 1.839 $1.84 – 1.879 $1.88 – 1.919 $1.92 – 1.959 $1.96 – 1.999 $2.00 – 2.039 $2.04 – 2.079 $2.08 – 2.119 $2.12 – 2.159 $2.16 – 2.199 $2.20 – 2.239 $2.24 – 2.279 $2.28 – 2.319 $2.32 – 2.359 $2.36 – 2.399 $2.40 – 2.439 $2.44 – 2.479 $2.48 – 2.519 $2.52 – 2.559 $2.56 – 2.599 $2.60 – 2.639 $2.64 – 2.679 $2.68 – 2.719 $2.72 - 2.759 $2.76 - 2.799 $2.80 - 2.839 $2.84 - 2.879 $2.88 - 2.919 $2.92 - 2.959 $2.96 - 2.999 $3.00 - 3.039 $3.04 - 3.079 $3.08 - 3.119 $3.12 - 3.159 $3.16 - 3.199 $3.20 - 3.239 $3.24 - 3.279 $3.28 - 3.319 $3.32 - 3.359 $3.36 - 3.399 $3.40 - 3.439 $3.44 - 3.479 $3.48 - 3.519 $3.52 - 3.559 $3.56 - 3.599 $3.60 - 3.639 $3.64 - 3.679 $3.68 - 3.719 $3.72 - 3.759 $3.76 - 3.799 $3.80 - 3.839 $3.84 - 3.879 $3.88 - 3.919 $3.92 - 3.959 $3.96 - 3.999 $4.00 - 4.039 $4.04 - 4.079 $4.08 - 4.119 $4.12 - 4.159 $4.16 - 4.199 $4.20 - 4.239 $4.24 - 4.279 $4.28 - 4.319 $4.32 - 4.359 $4.36 - 4.399 $4.40 - 4.439 $4.44 - 4.479 $4.48 - 4.519 $4.52 - 4.559 $4.56 - 4.599 $4.60 - 4.639 $4.64 - 4.679 $4.68 - 4.719 $4.72 - 4.759 $4.76 - 4.779 $4.80 - 4.839	$0 $3 $5 $6 $8 $9 $11 $12 $14 $15 $17 $18 $20 $21 $23 $24 $26 $27 $29 $31 $32 $34 $35 $37 $38 $40 $41 $43 $44 $46 $47 $49 $50 $52 $53 $55 $56 $58 $60 $61 $63 $64 $66 $67 $69 $70 $72 $73 $75 $76 $78 $79 $81 $82 $84 $85 $87 $89 $90 $92 $93 $95 $96 $98 $99 $101 $102 $104 $105 $107 $108 $110 $111 $113 $114 $116 $117 $119 $120 $122 $124 $125 $127 $128 $130 $131 $133 $134 $136 $137 $139	$0 $11 $16 $21 $26 $32 $37 $42 $47 $53 $58 $63 $69 $74 $79 $84 $90 $95 $100 $106 $111 $116 $121 $127 $132 $137 $142 $148 $153 $158 $164 $169 $174 $179 $185 $190 $195 $200 $206 $211 $216 $222 $227 $232 $237 $243 $248 $253 $258 $264 $269 $274 $280 $285 $290 $295 $301 $306 $311 $317 $322 $327 $332 $338 $343 $348 $353 $359 $364 $369 $375 $380 $385 $390 $396 $401 $406 $411 $417 $422 $427 $433 $438 $443 $448 $454 $459 $464 $469 $475 $480

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