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BNSF Testimony on Fuel Surcharges
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Ok, go to slide 8 where they talk about suffering a $1B under-recovery in recent years. <br /> <br />Consider this - does that address the question, is the amount that is charged on my invoice from BNSF today equal to their incremental cost of fuel? The simple, direct and honest answer is no. <br /> <br />What is says .... and if you know anything about the historic contracts that BNSF inked with large shippers (particularly coal contracts and steamship lines) ... is that those contracts either had no fuel surcharge recovery language or it was insufficient, given current conditions. Since some of those are long term in nature, BNSF can not recover from those parties. As a result, there is data to suggest that other customers, who are not party too such long term contracts, are currently subsidizing those other customers. BNSF has repeatedly refused to provide the simple math that justifies their FAK fuel surcharge program. <br /> <br />So - should other customers provide such a subsidy, because BNSF made bad deals in the past. I'm thinking not. <br /> <br />Go back and re-read the presentation. The presentation does not directly lie, but it does substantially mis-lead. Does it say "We believe that the fuel surcharge invoiced to each customer is fair and is representative of the incremental cost of moving that customer's freight." ? No it does not. It just says "In aggregate, we don't get all of our fuel cost back." If you dissect that as noted above, they intentionally fail to say why (bad historic, long-term deals.) That's just short of lying to a Federal Board in my opinion.
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