BNSF Mileage-Based Fuel Surcharge

Ag Products

Fuel Surcharge on Ag Commodity Shipments (applicable STCC numbers)

Shipments made pursuant to pricing documents referring hereto will be subject to a Mileage Based Fuel Surcharge (MBFS), when applicable. The MBFS will be calculated by multiplying the applicable fuel surcharge per mile times the number of miles per shipment.

BNSF mileage-based fuel surcharge applies to movements that originate and terminate on BNSF and to the BNSF portion of Rule 11 shipments-a type of interline shipment where each carrier bills the customer separately for their services. The mileage surcharge also applies to certain movements involving BNSF and one or more short lines and to interline moves for which BNSF has pricing authority. Interline mileage will be the non-familized interactive miles available in ALK Technologies' PC*Miler Rail Fuel Surcharge router. Effective October 1, 2009 BNSF will use PC*Miler Version 16 and will use the PC*Miler Rail Fuel Surcharge router to calculate total miles for those interline moves.

The applicable fuel surcharge per mile, as shown in the Fuel Surcharge Table, will be determined by using the U. S. Average Price of Retail On-Highway Diesel Fuel (HDF). When the HDF monthly average equals or exceeds $1.25 per gallon, in the second calendar month prior to the month in which the MBFS applies, an MBFS will be applied to the total freight charges for each shipment waybill dated on or after the 1st day of the second following calendar month.

The MBFS will be adjusted monthly. The Fuel Surcharge Table will be subject to periodic review. The MBFS shall be included on the invoice for freight charges for each shipment. Miscellaneous and accessorial charges will not be subject to MBFS.

The source for the price of HDF will be the U. S. Department of Energy's, EIA Retail On-Highway Diesel Prices Report, whose weekly average price is available at http://www.eia.doe.gov.

Mileage calculations are based on actual BNSF Railway mileage. You can verify our calculations with the BNSF 6003 Rail Miles Inquiry tool or refer to our mileage table. The mileage calculation will apply between the billed origin and billed destination.

Exception: Pacific North West (PNW) export destinations will be grouped using Seattle, WA as destination upon which the mileage-based fuel surcharge will be calculated for all whole grain (STCC 011) shipments. Export destinations will be as follows:

PNW Group: Rivergate, OR, Portland, OR, Kalama, WA, Seattle, WA, Tacoma, WA and Vancouver, WA. As an example, the fuel surcharge from Alton, ND to Vancouver, WA will be calculated using the miles from Alton, ND to Seattle, WA (1,496 miles).

Texas Gulf export facilities will be grouped using Houston, TX as the destination upon which the mileage-based fuel surcharge will be calculated for all whole grain (STCC 011) shipments. Export destinations will be as follows:

Texas Gulf Group: Beaumont, Corpus Christi, Galena Park, Galveston, Houston and Port of Brownsville, TX. Shipments must be unloaded at these destinations.
As an example, the fuel surcharge from Wichita, KS to Galveston, TX will be calculated using the miles from Wichita, KS to Houston, TX (646 miles).

Ag Fuel Surcharge Rate

Each $0.04 per gallon increase thereafter, apply an additional $0.01 per mile.

Example: If May’s average monthly price of HDF is $1.856 Per Gallon then the MBFS applied in July would be $0.16 per mile. Thus, for a shipment traveling 1,000 BNSF Railway Miles a Fuel Surcharge of $160 would apply.