The National Grain and Feed Association today asked the Surface Transportation Board to eliminate or significantly modify a provision of its rules that immunizes railroads from being required to refund fuel surcharges that exceed their incremental internal cost increases, so long as they base their surcharges on a specific fuel-cost index.

In a statement submitted August 4, the NGFA urged the STB to either eliminate the “safe-harbor” provision or modify it so it no longer immunizes rail carriers when they cannot demonstrate adequately that a “reasonable nexus” exists between their fuel surcharge formulas and their actual internal incremental fuel costs.

As evidence, the NGFA provided a chart from the Securities and Exchange Commission showing the percentage increase in grain fuel surcharges that exceeded growth in rail fuel costs.

▪ National Grain and Feed Association — Comments before the U.S. Surface Transportation Board on Rail Fuel Surcharges