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CN Adopts Distance Based Fuel Surcharge
MONTREAL - Mar 20/07 - SNS -- Fuel surcharges assessed by the Canadian National Railway (CN) will now be based on distance as a result of a January 26 U.S. Surface Transportation Board (STB) decision.
CN plans to introduce fuel surcharge tariff 7402 effective April 26 applicable to all existing tariff (public prices), with the exception of containers, trailers, and finished vehicles, which will remain under our current fuel surcharge tariff 7401.
Under tariff 7402, rail mileage calculations from third-party software -- ALK Technologies PC* Miler Rail-Version 13 -- will be used. Separate surcharge calculations will be made for CN bulk commodities and all other carload commodities.
The new surcharge will be calculated monthly and will be based on the average price of "U.S. No. 2 Diesel Retail Sales by all Sellers (cents per gallon) On-Highway Diesel (OHD)" of the second calendar month prior to the month in which the surcharge is applied. For example, the surcharge in April will be calculated on the average OHD price for the month of February.
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