Canadian Pacific Implements New Fuel Surcharge Program

In response to volatile fuel prices, Canadian Pacific Railway says it has implemented a new fuel surcharge program. The surcharge, says the transcontinental carrier, will be based on the monthly average price of West Texas Intermediate (WTI) crude oil rather than a quarterly average WTI price. The process will work this way: Once the previous month's average WTI price has been calculated, customers have the current month to convert payment systems to account for a rate adjustment. The surcharge then will flow through to customers in the following month. The fuel surcharge is 2% of the freight charge when the WTI monthly average price reaches US$24 per barrel; the surcharge will be 4% of the freight charge when the WTI reaches $27 per barrel. It will increase 0.4% for each additional dollar over $27. Canadian Pacific Railway has 14,000 miles of rail serving Canada and the United States. Its headquarters are in Calgary.