WTSA adopts floating inland fuel surcharge

WTSA adopts floating inland fuel surcharge    Ocean carriers serving the U.S.-to-Asia freight market are attempting to recover a share of higher inland rail and trucking costs attributed to rising diesel fuel prices by adopting an inland fuel surcharge, effective Oct. 1, according to the Westbound Transpacific Stabilization Agreement (WTSA), a liner industry research and discussion group.
   A firm amount for the new surcharge has not been established yet, but WTSA said the surcharge will float, in accordance with fluctuating national highway diesel fuel prices posted weekly by the U.S. Department of Energy. It will also be adjusted quarterly — on Jan. 1, April 1, July 1 and Oct. 1. The Oct. 1 surcharge level will be determined by a weighted average of diesel fuel prices over a 13-week period ending Aug. 30, at which time the level will be known and publicly announced.
   Two per-container surcharge tiers will be established — one for long-haul rail and combination rail/truck moves, and one for pure truck moves, which are largely regional and local.
   Since the beginning of 2005, DOE reports that the per-gallon diesel fuel price has risen about 23 percent, from $1.96 to $2.41. Class 1 railroads, along with long-haul and regional trucking firms, have been imposing and increasing fuel surcharges to recover these costs since the beginning of 2005.
   'As the lead transportation and logistics providers for many international shipments, ocean carriers have been on the receiving end of multiple inland charges as diesel prices have gone up,' said Albert A. Pierce, WTSA executive director, in a statement. 'That's not a sustainable situation; a portion of the burden must be shared by the customer base.'
   WTSA is a voluntary discussion and research forum of 12 major container shipping lines serving the trade from U.S. ports and inland points to destinations throughout Asia.