FSC Policy

Definitions

Fuel Surcharge (FSC) – This is a fee charged to customers. The FSC charge can be billed as a flat rate, a line item, or a combined charge. The fee is typically calculated by multiplying the base rate or line-item charge by a percentage, calculated per mile, or billed as a flat charge.

Custom FSC – This occurs when a customer requests that Portland Container use a calculation method different from the Standard Calculation Method.

Billing Month – The Billing Month is the calendar month in which the FSC percentage is applied.

Data Month 1 – Refers to the calendar month preceding the Billing Month.

Data Month 2 – Refers to the calendar month preceding Data Month 1.

Data Range – The dates between the second to the last Wednesday of the Month, Data 2 through the last Tuesday of Data Month 1.

Fuel Price Value – This is the value expressed in monetary terms that is used to find the corresponding percentage on the FSC table.

Billing Percentage – This is the percentage used to calculate the Fuel Surcharge.

TMS – Transportation Management System

Percentage Determination

Portland Container references the U.S. Energy Information Administration (EIA) West Coast (PADD 5), excluding the California No. 2 Diesel Retail Price, and a Portland Container-specific FSC chart to determine the correct percentage to bill.

Data Range

The EIA values from the second to the last Wednesday of Data Month 2 through the second to the last Tuesday of Data Month 1 are used for the calculations. 

Calculations

Three separate calculations are used to determine the EIA value when cross-referencing to the Portland Container FSC Chart for the billing percentage.

Average - The weekly values for each week in the date range are summed together and then divided by the number of weeks used in the Base Data Range.

Median - The median between the average and the last EIA value of the previous week's collection from Data Month 1.

Fuel Price Value  - This is either the Median or the last EIA value, whichever is higher.

FSC Calculation

Standard Calculation Method

There are several methods for calculating a fuel surcharge. Portland Container only uses one type of calculation. Customers may specify a specific calculation method known as a Custom FSC. Portland Container uses the percentage calculation method. The line item subject to FSC is multiplied by the FSC percentage applicable.

-          Example: 100 * .35 (35%) = 35

Custom

Some customers have specific FSC calculation methods that do not conform to the standard calculation method used by Portland Container.  

Application of Fuel Surcharge & Changes

Fuel surcharge is established on the date the order is received. For example, if an order is received on October 30 for service in mid-November, the October fuel surcharge applies. The Portland Container fuel surcharge rate for the current month and the two months prior can be found at pdxcontainer.com/FSC.  

Update Frequency

Portland Container updates the FSC percentage for the bill on the first of each month. Notice to affected parties and/or notification to subscribers is scheduled for the second-to-last Friday of the month.