3/1/2004 FSC Program Terms

Effective 3/01/2004, NS implemented a revised fuel surcharge program. The revised surcharge program applies to all local and joint line traffic moving on NS issued price authorities (public and private) that reference the NS Conditions of Carriage 1-Series or NS Conditions of Carriage 2-Series.

The formula for determining the fuel surcharge is based on the monthly average price of West Texas Intermediate Crude Oil (WTI Average Price), an industry standard for tracking oil prices. The WTI Average Price for a given calendar month is determined by adding the daily WTI prices published in the Wall Street Journal during a calendar month, and dividing the result by the number of days so published. The result is rounded to the nearest cent.

The fuel surcharge will be 0.4% of the linehaul freight charge for every $1 per barrel, or portion thereof, by which the WTI Average Price exceeds $23, starting at a WTI Average Price of $23.01. The following schedule provides the fuel surcharge within the noted WTI Average Price ranges:

WTI Average
Price Per Barrel Fuel Surcharge
Percentage

$23.00 and Below No Surcharge

$23.01 - $24.00 0.4%

$24.01 - $25.00 0.8%

$25.01 - $26.00 1.2%

$26.01 - $27.00 1.6%

$27.01 - $28.00 2.0%

$28.01 - $29.00 2.4%

$29.01 - $30.00 2.8%

$30.01 - $31.00 3.2%

$31.01 - $32.00 3.6%

$32.01 - $33.00 4.0%

$33.01 - $34.00 4.4%

$34.01 - $35.00 4.8%

$35.01 - $36.00 5.2%

$36.01 - $37.00 5.6%

$37.01 - $38.00 6.0%

$38.01 - $39.00 6.4%

$39.01 - $40.00 6.8%

$40.01 - $41.00 7.2%

$41.01 - $42.00 7.6%

$42.01 - $43.00 8.0%

$43.01 - $44.00 8.4%

$44.01 - $45.00 8.8%

$45.01 - $46.00 9.2%

$46.01 - $47.00 9.6%

$47.01 - $48.00 10.0%

$48.01 - $49.00 10.4%

$49.01 - $50.00 10.8%

$50.01 - $51.00 11.2%

$51.01 - $52.00 11.6%

$52.01 - $53.00 12.0%

$53.01 - $54.00 12.4%

$54.01 - $55.00 12.8%

$55.01 - $56.00 13.2%

$56.01 - $57.00 13.6%

$57.01 - $58.00 14.0%

$58.01 - $59.00 14.4%

$59.01 - $60.00 14.8%

$60.01 - $61.00 15.2%

$61.01 - $62.00 15.6%

$62.01 - $63.00 16.0%

$63.01 - $64.00 16.4%

$64.01 - $65.00 16.8%

$65.01 - $66.00 17.2%

$66.01 - $67.00 17.6%

$67.01 - $68.00 18.0%

$68.01 - $69.00 18.4%

$69.01 - $70.00 18.8%

$70.01 - $71.00 19.2%

$71.01 - $72.00 19.6%

$72.01 - $73.00 20.0%

$73.01 - $74.00 20.4%

$74.01 - $75.00 20.8%

$75.01 - $76.00 21.2%

$76.01 - $77.00 21.6%

$77.01 - $78.00 22.0%

$78.01 - $79.00 22.4%

$79.01 - $80.00 22.8%

$80.01 - $81.00 23.2%

$81.01 - $82.00 23.6%

$82.01 - $83.00 24.0%

$83.01 - $84.00 24.4%

$84.01 - $85.00 24.8%

$85.01 - $86.00 25.2%

$86.01 - $87.00 25.6%

$87.01 - $88.00 26.0%

$88.01 - $89.00 26.4%

$89.01 - $90.00 26.8%

$90.01 - $91.00 27.2%

$91.01 - $92.00 27.6%

$92.01 - $93.00 28.0%

$93.01 - $94.00 28.4%

$94.01 - $95.00 28.8%

$95.01 - $96.00 29.2%

$96.01 - $97.00 29.6%

$97.01 - $98.00 30.0%

$98.01 - $99.00 30.4%

$99.01 - $100.00 30.8%

$100.01 - $101.00 31.2%

$101.01 - $102.00 31.6%

$102.01 - $103.00 32.0%

$103.01 - $104.00 32.4%

$104.01 - $105.00 32.8%

$105.01 - $106.00 33.2%

$106.01 - $107.00 33.6%

$107.01 - $108.00 34.0%

$108.01 - $109.00 34.4%

$109.01 - $110.00 34.8%

$110.01 & Above *

* The fuel surcharge will be 34.8% plus an additional .4% of the line-haul freight charge for every $1.00 per barrel, or portion thereof, by which the WTI Average Price Per Barrel exceeds $110.00.

The fuel surcharge shall be applied to each shipment having a bill of lading dated on or after the 1st day of the second calendar month following the calendar month of a given WTI Average Price calculation. The fuel surcharge will change monthly per the table below:

Calendar Month of
WTI Average Price Fuel Surcharge
Applied

January March 1

February April 1

March May 1

April June 1

May July 1

June August 1

July September 1

August October 1

September November 1

October December 1

November January 1

December February 1

Notice of current fuel surcharge in effect as well as any changes to the fuel surcharge will be provided on the NS Web site. In addition, while the fuel surcharge remains in effect, NS will provide daily updates on the prior, current and projected surcharges. From the tool bar on the main NS Homepage, simply select "Fuel Price News " from the dropdown menu.