Tariff 9700 - OHD mileage fuel surcharge
Tariff 9700 - program schedule
The use of a 15 day average fuel index price is consistent with the semi-monthly Application Period. Calculating the average fuel index price based on 15 days prior to the 20 days preceding the application date more closely aligns fuel surcharge to fuel price changes.
When fuel prices rise rapidly, a monthly fuel program does not keep pace in offsetting the higher fuel expense. Conversely, when fuel prices decline, a monthly program lags behind the fuel price change. This lag can adversely impact both the rail carrier and the shipper.
CP is providing more than the required advance notification for the tariff amendments.
Once the amendments are in effect, the tariff itself remains unchanged; only the product of the formula changes. Providing 20 days lead time is consistent with the objective to make the program more responsive for CP and the customer. The lead time change is compliant with both STB and CTA regulations.