Carload WTI Based Fuel Surcharge

The following information applies to some Union Pacific documents. Most documents have transitioned to a new surcharge based on the price of Highway Diesel Fuel.

For rate documents that refer to this specific fuel surcharge provision, see the WTI page (West Texas Intermediate crude oil) for details on the surcharge status.

The following formula is used to calculate the fuel cost recovery charge.

  1. When the price of West Texas Intermediate Crude Oil (WTI), equals or exceeds $28.00 per barrel for 30 consecutive published days a fuel surcharge shall apply. The fuel surcharge will be applied until the WTI crude oil price falls below the $28.00 threshold and remains there for 30 consecutive published days.
  2. The fuel surcharge will be applied to the line haul freight charge(s) that make reference to this fuel cost recovery program.
  3. The WTI price shall be as published by CME Group.
  4. The fuel surcharge shall be applied according to the following threshold schedule:
    Fuel Surcharge Thresholds
    West Texas Intermediate
    Crude Oil
    (Price per barrel)
    Cumulative Fuel Surcharge
    (Percentage)
    under $28.00 0%
    $28.00 - $32.99 2%
    $33.00 - $37.99 4%
    $38.00 - $42.99 6%
    $43.00 - $47.99 8%
    Each $5.00 per barrel increase thereafter An additional 2%
  5. The price of WTI must equal or exceed a given bracket for thirty (30) consecutive published days for the surcharge under that bracket to be applicable.
  6. If the price of WTI ceases to be available from CME Group or some other readily accessible source, a substitute to measure will be utilized.
  7. Any fuel surcharge applied to the line haul freight charge(s) that make reference to this fuel cost recovery charge will be removed or reduced when the price of WTI remains below the price which triggers a specific surcharge bracket for thirty (30) consecutive published days.
  8. In no case will the freight charge(s) be reduced below the Base Freight Charge(s) nor will the application or removal of the fuel surcharge be retroactive.
  9. This UP Fuel Surcharge program is applicable only when shipments are moving on UP price documents. If a shipment is moving on joint line rates where UP is not the publisher, the publishing carrier's fuel surcharge provision, if any, will apply.