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STB Bars ‘Misleading’ Fuel Surcharges

1:38 PM MDT | July 25, 2007 | Chemical Week Editorial Staff

The Surface Transportation Board (STB; Washington) has issued a final rule declaring it an “unreasonable” practice for railroads to compute fuel surcharges that do not correlate with actual fuel costs for specific rail shipments. The rule prohibits railroads from assessing fuel surcharges based on a percentage calculation of the base rate charged to freight customers. It also calls for railroads to change the practice of “double-dipping,” or applying both a fuel surcharge and rate increase based on a cost index that includes a fuel cost...

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