Canadian Pacific Implements New Fuel Surcharge Program

Jan. 13, 2005
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 ...

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.

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