Fuel Surcharge Programs

Percent of Revenue Fuel Surcharge Program

BNSF’s Percent of Revenue Fuel Surcharge Program is practical for our customers due to its simple calculation and ease with which it can be integrated into their current systems.

BNSF Railway's strike price will be reset from $1.25 per gallon to $2.50 per gallon beginning January 2011. The change applies to BNSF's mileage-based and percent-of-revenue fuel surcharge programs for Agricultural Products, Industrial Products, Coal, and Automotive shipments. The change will go into effect for individual price authorities as they renew. The $2.50 strike price will go into effect for Ag tariffs beginning March 1, 2011.

For more information, please see the Frequently Asked Questions and the Customer Notification.

Fuel Surcharge Rates

Please Make a Selection Automotive $1.25 Coal Unit Train - 6100, 3380 $1.24 All Other Freight - 6100, 3375, sec A $1.25 ------------------------------------------------------------- Automotive $2.50 Coal Unit Train - 6100, 3382 $2.50 All Other Freight - 6100, 3376, sec A $2.50

U.S. Average Retail On-Highway Diesel Fuel (HDF) - BNSF uses HDF as an index in calculating fuel surcharge. Weekly and monthly HDF prices can be obtained from the U. S. Department of Energy’s website. These HDF prices are then used as the basis for fuel surcharge billing.

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Mileage-Based Fuel Surcharge Program

BNSF was the first in the railroad industry to implement a mileage-based fuel surcharge. A mileage-based fuel surcharge program better aligns fuel surcharge assessed with actual incremental fuel consumption.

BNSF Railway's strike price will be reset from $1.25 per gallon to $2.50 per gallon beginning January 2011. The change applies to BNSF's mileage-based and percent-of-revenue fuel surcharge programs for Agricultural Products, Industrial Products, Coal, and Automotive shipments. The change will go into effect for individual price authorities as they renew. The $2.50 strike price will go into effect for Ag tariffs beginning March 1, 2011.

For more information, please see the Frequently Asked Questions and the Customer Notification.

Fuel Surcharge Rates

Please Make a Selection Coal Unit Train - 6100, 3381 $1.25 Grains & Feed (Ag Products) - 6100,3375, sec B $1.25 All Other Freight - 6100, 3375, sec B $1.25 -------------------------------------------------------------------- Coal Unit Train - 6100, 3383 $2.50 Grains & Feed (Ag Products) - 6100, 3376, sec B $2.50 All Other Freight - 6100, 3376, sec B $2.50

U.S. Average Retail On-Highway Diesel Fuel (HDF) - BNSF uses HDF as an index in calculating fuel surcharge. Weekly and monthly HDF prices can be obtained from the U. S. Department of Energy’s website. These HDF prices are then used as the basis for fuel surcharge billing.

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Calculate Your Mileage

Coal Unit Train customers can find their mileage on the Coal Unit Train and Trainload Mileage Table 

All Other Mileage-based Customers can determine their mileage using the BNSF Mileage Inquiry Tool (BNSF Mileage Tariff – 6003)
(Note: certain whole grain shipments with export destinations may have alternative miles)

Mileage for Interline Shipments for which BNSF has pricing authority will be the non-familized interactive miles available in ALK Technologies' PC*Miler Rail Fuel Surcharge router. Customers can register for secured access by logging in to your BNSF account. (Effective April 1, 2012, BNSF is using PC*Miler Version 18.2.1.) This Pricing Update notification can provide more information.

The mileage for Whole Grain Shipments (STCC 011) with Pacific Northwest (PNW) or Texas Gulf export destinations are grouped to a single destination in each area.

For example, miles from Alton ND to Vancouver WA would be determined using the miles from Alton ND to Seattle WA. Refer to the map below.

NOTE: As part of routine maintenance of its tariffs, BNSF reviews and periodically updates mileages between some stations.  These quarterly changes are scheduled in March, June, Sept, Dec, on the second Sunday of the month.

BNSF Mileage Tariff 6003 (Zipped ASCII/text)

This mileage file has been created for shipper use and is based on BNSF traffic movement over the past 27 months for all BNSF shipments. This file also contains the SPLCs for origins and destinations. To conserve space, this file contains only one-way records for each station-mileage pair.

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• BNSF Rebases Fuel Surcharge Beginning January 2011

To receive updates on BNSF’s fuel surcharge programs, as well as other Pricing updates by email, log in to your BNSF account, select Customer Subscription Service, and subscribe to Pricing Updates.

Frequently Asked Questions

Why is the strike price increasing?
What is rebasing?
Which customers will be affected by the resetting of their fuel surcharge strike price?
When will the fuel surcharge changes be implemented?
Why are you announcing the changes so far in advance of their effective dates?
Why did BNSF choose $2.50 as their new strike price?
What will happen if HDF falls below the new $2.50 strike price?
Why did BNSF create a fuel surcharge credit program?
How will the fuel surcharge credit program work?
How is HDF used to calculate my fuel surcharge?
What is the relationship between HDF and how much BNSF pays for diesel fuel?
How can I determine the miles for my shipment?
Will the miles used to calculate my mileage-based fuel surcharge include additional miles due to detours or other rerouting?
Why are there multiple fuel surcharge tables?
Does fuel surcharge apply to empty moves?
What are BNSF’s goals for the fuel surcharge program?
Who's my single point of contact for fuel surcharge questions?

 

Why is the strike price increasing?

Raising the strike price and the accompanying rebasing reflect continued high fuel prices and a consensus that fuel prices aren't likely to decline below the new strike price in the foreseeable future.

What is rebasing?

A portion of each shipment's fuel expense is covered by the freight rate. The fuel expense above the Highway Diesel Fuel (HDF) value of $1.25, the current strike price, is covered by the fuel surcharge. The strike price is being adjusted from $1.25 per gallon HDF to $2.50. This will result in a lower fuel surcharge bill; however, the amount of this reduction will be included in the freight rate. The rebased freight rate will therefore cover a larger portion of the fuel expense.

Which customers will be affected by the resetting of their fuel surcharge strike price?

All Agricultural Products, Industrial Products, Coal and Automotive customers that are currently on a fuel surcharge program - including both percent of revenue and mileage-based programs.

When will the fuel surcharge changes be implemented?

The strike price will increase to $2.50 based on the effective date of the governing BNSF price authority. Industrial Products customers will see changes occur based on the current pricing calendar. Changes for Agricultural Products customers are targeted for March 2011. Coal and Automotive customers should contact their Sales/Marketing representative for more specific dates.

Why are you announcing the changes so far in advance of their effective dates?

Although only 20 days' notice is required on regulated commodities, we wanted to give customers ample time to adjust their systems and prepare for the changes.

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Why did BNSF choose $2.50 as their new strike price?

Excluding the unexpected price drop in 2009, HDF has not averaged below $2.50 on a sustained basis since 2005. Rebasing to a higher strike price helps minimize the volatility felt by changes in the fuel price.

What will happen if HDF falls below the new $2.50 strike price?

If the HDF average price falls between $2.50 and $1.25, customers will be compensated by receiving a fuel surcharge credit on their freight bill. The applicable fuel surcharge credit percentage or cents per mile can be obtained from the appropriate fuel surcharge tables.

Why did BNSF create a fuel surcharge credit program?

Though we do not expect prices to fall below the $2.50 strike price for a sustained period, an unexpected drop in prices is always possible. BNSF's goal is to create fuel surcharge programs that are fair, transparent, and simple to administer. So if in the future HDF falls below the $2.50 strike price for an extended period, BNSF will credit customers so they are not penalized for the higher strike price.

How will the fuel surcharge credit program work?

The fuel surcharge table for HDF prices below $2.50 works similarly to that of the table above $2.50. If the monthly average HDF price per gallon is below $2.50, the corresponding percentage or cents per mile credit will be applied. Like the current program, the fuel surcharge for the current month will be based on the U.S. Average Retail On-Highway Diesel Fuel (HDF) from two months prior. The fuel surcharge amount will continue to be displayed as a line item on your freight bill, but will appear as a credit amount. The credit will apply to BNSF local moves and BNSF's portion of interline moves.

How is HDF used to calculate my fuel surcharge?

Based on the applicable fuel surcharge program, the effective fuel surcharge percentage or cents per mile for a given period is based on the U.S. average HDF (either weekly or monthly) from a prior period.

What is the relationship between HDF and how much BNSF pays for diesel fuel?

BNSF has found that the change in the national price of HDF closely correlates to the change in our actual fuel expense. HDF is simply a publicly available index used to determine the fuel surcharge. It is easily accessible from the U.S. Department of Energy.

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How can I determine the miles for my shipment?

BNSF has web-based tools available for customers to obtain mileage between their shipment's origin and destination. Click here to determine your mileage.

Will the miles used to calculate my mileage-based fuel surcharge include additional miles due to detours or other rerouting?

No. Mileage-based fuel surcharge will be based on the specific rail mileage between origin and destination points.

Why are there multiple fuel surcharge tables?

The fuel intensity that is used to build each table reflects our best estimate of the average fuel consumption for that traffic type. We believe that these tables reflect an accurate approach, while also balancing the need for simplicity, ease of implementation and customer auditability.

Does fuel surcharge apply to empty moves?

Fuel surcharge is applied to loaded moves and to the revenue movement of empty equipment.

What are BNSF’s goals for the fuel surcharge program?

BNSF has strived to create a fuel surcharge program that, within the constraints of simplicity and auditability, is fair across our overall customer base.

Who's my single point of contact for fuel surcharge questions?

Your single point of contact is your BNSF Sales/Marketing representative.

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