Dear Valued Customer:
In the fast-paced world of lumber, Norfolk Southern strives for competitiveness and full coverage in our real-time rating. Effective April 1, 2019, we take another step toward our goals with the addition of a mileage-based fuel surcharge to NSQ 43040, which includes rates for originated forest products, and NSQ 40660, which includes rates for poles and logs.
The commodities covered by NSQ 43040 include: lumber (STCC 24-2XX-XX), plywood (STCC 24-321-XX), particleboard and OSB (STCCs 24-996-1X and 24-991-1X), crane mats (STCC 24-992-38), and plastic lumber (STCC 30-719-06).
The commodities covered by NSQ 40660 include: poles (STCC 24-911-XX), logs (STCC 24-111-XX), and posts (STCC 24-116-XX).
Please see the specific rate authorities for a full listing of the STCCs included.
Other important items of note:
- Terms of the applicable fuel surcharge can be found at: http://www.nscorp.com/$2.50 Mileage-based Fuel Surcharge or attached to this letter
- As with all Norfolk Southern rate publications, the applicable terms and conditions are listed in the notes section of each authority
- The mileage fuel surcharge for April 2019 will be $0.13/mile
The updated NSQs 43040 and 40660 will be available in AccessNS by tomorrow, March 2. We encourage you to register for AccessNS at https://accessns.nscorp.com/accessNS/#register, and subscribe to these authorities so you can receive up-to-date changes as they are available. You can also look up fuel surcharge miles in AccessNS using the Mileage Inquiry application.
If you have questions or concerns, please do not hesitate to contact the forest products marketing team or your sales person. We at Norfolk Southern appreciate your business and look forward to continuing to serve your transportation needs.
Brian Vittur, Director of Marketing
Laura Brooks, Sr. Market Manager
Tami Alexander, Market Manage
NS $2.50/gallon OHD Mileage-Based Fuel Surcharge
Mileage-based fuel surcharge: A fuel surcharge will be paid and the surcharge will be based on the average monthly price of a gallon of U.S. diesel (on highway) ("OHD"), published by the U.S. Energy Information Administration (http://www.EIA.gov/) (as set forth below, the "OHD average price"). The fuel surcharge will be assessed on all line-haul freight shipments.
The applicable fuel surcharge shall be applied to each shipment having a bill of lading dated on or after the first day of the second calendar month of a given OHD average price calculation. The fuel surcharge will change monthly per the table below.
|Calendar month of
OHD average price
|Calendar month of
OHD average price
|January||March 1||July||September 1|
|February||April 1||August||October 1|
|March||May 1||September||November 1|
|April||June 1||October||December 1|
|May||July 1||November||January 1|
|June||August 1||December||February 1|
In the event the OHD average price exceeds $2.50 per gallon, the fuel surcharge per car will be $0.01 per mile of the line-haul movement for every $0.04 per gallon, or portion thereof, by which the OHD average price exceeds $2.50 per gallon. If the U.S. Energy Information Administration ceases publication of the OHD average price under any name, NS will endeavor to obtain the same information from another public source and, if such information is not available from any public source, will employ a suitable substitute source of price or measure.
The following schedule reflects the applicable fuel surcharge within the OHD average price ranges noted below. Should the OHD average price change to a level not included in the table, the calculation formula described in the preceding paragraph will apply in determining the applicable index amount per mile.
|$2.509 AND BELOW||NONE|
|$2.83 AND ABOVE||$ *|
*The fuel surcharge will be $0.08 per line-haul mile plus an additional $0.01 per line-haul mile for every $0.04 per gallon, or portion thereof, by which the OHD average price exceeds $2.829.
Mileage will be determined using ALK PC*Miler Rail fuel mileage as adjusted from time to time and as reflected in NS's records on the date of determination of the applicable fuel surcharge, which may include a lag between the time the latest version of ALK PC*Miler Rail fuel mileage is published and the date on which NS adopts the newly published rates into its records for use in connection with its fuel surcharge programs.