Mar 2008
American Chemistry Council Decries Unreasonable Rail Fuel Surcharge Practices
03/31/08 08:09
News Release
For Immediate Release May 11, 2006
Contact: Scott Jensen (703) 741-5834/ cell (703) 434-2279
Email: Scott_Jensen@americanchemistry.com
American Chemistry Council Decries Unreasonable Rail Fuel Surcharge Practices
Seeks More Equitable, Reality-Based System for Determining Need
ARLINGTON, VA (May 11, 2006) – Unreasonable pricing practices, rooted in today’s government-protected system of railroad monopolies, have led railroads to impose unwarranted and unfair fuel surcharges on chemistry sector customers and other captive industries, the American Chemistry Council (ACC) told the Surface Transportation Board (STB) today. The STB is investigating rail fuel surcharge practices.
Analysts contracted by ACC confirmed revenue generated by the rail fuel surcharges “greatly exceeds” actual fuel costs due in large part to flaws in the methodologies used in calculating the surcharges.
Further, the analysts estimate that rail fuel surcharges today have unnecessarily cost railroad customers – including the chemistry sector – roughly $1 billion in overcharges. This is a costly burden that could create negative consequences for the entire U.S. economy.
Testifying on behalf of the nation’s leading chemistry companies, ACC’s Senior Director for Distribution, Tom Schick, explained that railroad fuel surcharge practices are unreasonable because of five crucial factors:
1. Fuel surcharges often are not based on actual fuel consumption: Surcharges should be related to the amount of fuel consumed to provide a specific service to a shipper. Instead, they are based on other, often unrelated factors.
2. Fuel surcharges are inappropriately linked to freight rates: Rates are based on a wide range of competitive factors, and their differences are not relevant to the amount of fuel consumed for a particular trip.
3. Higher fuel costs are often covered by other means: Railroad fuel costs are captured through several mechanisms, such as the Rail Cost Adjustment Factor. Adding a fuel surcharge often means fuels costs are recovered more than once by the railroad. Such double jeopardy is unfair.
4. Some shippers are overcharged because others are not subject to fuel surcharges: Due to certain contracts or other circumstances, some railroads can not impose a surcharge on some customers. But it is unfair and unreasonable to “make up the difference” by unduly raising the charge for customers that do pay surcharges.
5. The reasonability of fuel surcharges can only be determined if there is complete data transparency: Railroads should report their actual fuels costs in a consistent, comprehensive and uniform manner so that the STB, shippers and Congress can accurately and readily determine the revenue obtained from surcharges.
The flaws in rail fuel surcharge practices are significant. According to the analysis prepared at the request of ACC by the economic and management consulting firm of Snavely King Majoros O’Connor and Lee, Inc., the manner in which fuel surcharges have been calculated and applied by the railroads has resulted in an “over recovery in the range of $1 billion for 2005. This is the amount by which Class I fuel surcharge revenues collected by US railroads exceed the increased fuel costs incurred by the railroads.” This information was submitted to STB for its consideration.
Snavely King has a simple recommendation to correct this obvious deficiency:
“We recommend replacing reliance on non-railroad measures of fuel costs with a simple process using the railroad’s own measurement of fuel cost increases. The railroads have demonstrated they can measure railroad fuel cost increases [and] have decades of experience in recording the fuel cost component of the Rail Cost Adjustment Factor [and] the predecessor AAR rail cost index.”
They note, “Our recommended change to proven metrics for fuel cost can restore confidence in the rail fuel surcharge process and eliminate reliance on unproven techniques whose design is unsupported and whose application is inequitable.”
ACC calls on STB to change how railroads calculate and assess fuel surcharges. More reasonable and equitable practices are urgently needed.
For Immediate Release May 11, 2006
Contact: Scott Jensen (703) 741-5834/ cell (703) 434-2279
Email: Scott_Jensen@americanchemistry.com
American Chemistry Council Decries Unreasonable Rail Fuel Surcharge Practices
Seeks More Equitable, Reality-Based System for Determining Need
ARLINGTON, VA (May 11, 2006) – Unreasonable pricing practices, rooted in today’s government-protected system of railroad monopolies, have led railroads to impose unwarranted and unfair fuel surcharges on chemistry sector customers and other captive industries, the American Chemistry Council (ACC) told the Surface Transportation Board (STB) today. The STB is investigating rail fuel surcharge practices.
Analysts contracted by ACC confirmed revenue generated by the rail fuel surcharges “greatly exceeds” actual fuel costs due in large part to flaws in the methodologies used in calculating the surcharges.
Further, the analysts estimate that rail fuel surcharges today have unnecessarily cost railroad customers – including the chemistry sector – roughly $1 billion in overcharges. This is a costly burden that could create negative consequences for the entire U.S. economy.
Testifying on behalf of the nation’s leading chemistry companies, ACC’s Senior Director for Distribution, Tom Schick, explained that railroad fuel surcharge practices are unreasonable because of five crucial factors:
1. Fuel surcharges often are not based on actual fuel consumption: Surcharges should be related to the amount of fuel consumed to provide a specific service to a shipper. Instead, they are based on other, often unrelated factors.
2. Fuel surcharges are inappropriately linked to freight rates: Rates are based on a wide range of competitive factors, and their differences are not relevant to the amount of fuel consumed for a particular trip.
3. Higher fuel costs are often covered by other means: Railroad fuel costs are captured through several mechanisms, such as the Rail Cost Adjustment Factor. Adding a fuel surcharge often means fuels costs are recovered more than once by the railroad. Such double jeopardy is unfair.
4. Some shippers are overcharged because others are not subject to fuel surcharges: Due to certain contracts or other circumstances, some railroads can not impose a surcharge on some customers. But it is unfair and unreasonable to “make up the difference” by unduly raising the charge for customers that do pay surcharges.
5. The reasonability of fuel surcharges can only be determined if there is complete data transparency: Railroads should report their actual fuels costs in a consistent, comprehensive and uniform manner so that the STB, shippers and Congress can accurately and readily determine the revenue obtained from surcharges.
The flaws in rail fuel surcharge practices are significant. According to the analysis prepared at the request of ACC by the economic and management consulting firm of Snavely King Majoros O’Connor and Lee, Inc., the manner in which fuel surcharges have been calculated and applied by the railroads has resulted in an “over recovery in the range of $1 billion for 2005. This is the amount by which Class I fuel surcharge revenues collected by US railroads exceed the increased fuel costs incurred by the railroads.” This information was submitted to STB for its consideration.
Snavely King has a simple recommendation to correct this obvious deficiency:
“We recommend replacing reliance on non-railroad measures of fuel costs with a simple process using the railroad’s own measurement of fuel cost increases. The railroads have demonstrated they can measure railroad fuel cost increases [and] have decades of experience in recording the fuel cost component of the Rail Cost Adjustment Factor [and] the predecessor AAR rail cost index.”
They note, “Our recommended change to proven metrics for fuel cost can restore confidence in the rail fuel surcharge process and eliminate reliance on unproven techniques whose design is unsupported and whose application is inequitable.”
ACC calls on STB to change how railroads calculate and assess fuel surcharges. More reasonable and equitable practices are urgently needed.
Ed Rodzwicz new BLET President
03/31/08 08:04
Ed Rodzwicz new BLET President
CLEVELAND, March 24 — Ed Rodzwicz is the new National President of the Brotherhood of Locomotive Engineers and Trainmen, effective immediately.
Former National President Don M. Hahs was removed from office on March 20 by order of the International Brotherhood of Teamsters, based upon the recommendations of a hearing panel appointed under Article XIX of the IBT Constitution. Brother Hahs has appealed the decision.
The decision came about after several months of investigation by the Independent Review Board (IRB) and the Article XIX panel. The panel indicated that it was unwilling to conclude that Brother Hahs committed embezzlement; however, it determined that Hahs violated his fiduciary duties to the BLET and its members in connection with the use and control of Cleveland Cavaliers basketball tickets purchased with union funds, travel expenses for his wife, and other personal expenses, thereby bringing reproach upon the IBT in violation of the IBT Constitution. The panel’s recommendation was reissued as a decision of IBT President James P. Hoffa.
In line with the Panel’s recommendations, General President Hoffa also imposed the following penalties upon National President Hahs, effective March 20: Brother Hahs is removed from his current office in the BLET and prohibited from holding any office or employment with the BLET or any affiliated benefit fund, the IBT or any IBT affiliate, until the current term of office for BLET National President has expired in 2010; Brother Hahs is suspended from membership in the BLET and IBT for one year, during which time he shall be barred from having any knowing contact, including social contact, with officers, employees and members of the BLET and IBT and any affiliated entities; and Brother Hahs is fined in the amount of $44,963.97. Members are cautioned against having any knowing contact with Brother Hahs during this one year period.
The decision must be approved by the IRB and the federal court.
Under BLET’s Bylaws, the First Vice President assumes the duties of the National President if the latter is unable to continue holding office for any reason. As General President Hoffa’s decision became effective immediately upon its receipt, BLET First Vice President Edward W. Rodzwicz assumed the duties of National President on March 20.
National President Rodzwicz advises that he is conducting a conference call with the BLET Advisory Board today to discuss the matter in more detail.
Monday, March 24, 2008
CLEVELAND, March 24 — Ed Rodzwicz is the new National President of the Brotherhood of Locomotive Engineers and Trainmen, effective immediately.
Former National President Don M. Hahs was removed from office on March 20 by order of the International Brotherhood of Teamsters, based upon the recommendations of a hearing panel appointed under Article XIX of the IBT Constitution. Brother Hahs has appealed the decision.
The decision came about after several months of investigation by the Independent Review Board (IRB) and the Article XIX panel. The panel indicated that it was unwilling to conclude that Brother Hahs committed embezzlement; however, it determined that Hahs violated his fiduciary duties to the BLET and its members in connection with the use and control of Cleveland Cavaliers basketball tickets purchased with union funds, travel expenses for his wife, and other personal expenses, thereby bringing reproach upon the IBT in violation of the IBT Constitution. The panel’s recommendation was reissued as a decision of IBT President James P. Hoffa.
In line with the Panel’s recommendations, General President Hoffa also imposed the following penalties upon National President Hahs, effective March 20: Brother Hahs is removed from his current office in the BLET and prohibited from holding any office or employment with the BLET or any affiliated benefit fund, the IBT or any IBT affiliate, until the current term of office for BLET National President has expired in 2010; Brother Hahs is suspended from membership in the BLET and IBT for one year, during which time he shall be barred from having any knowing contact, including social contact, with officers, employees and members of the BLET and IBT and any affiliated entities; and Brother Hahs is fined in the amount of $44,963.97. Members are cautioned against having any knowing contact with Brother Hahs during this one year period.
The decision must be approved by the IRB and the federal court.
Under BLET’s Bylaws, the First Vice President assumes the duties of the National President if the latter is unable to continue holding office for any reason. As General President Hoffa’s decision became effective immediately upon its receipt, BLET First Vice President Edward W. Rodzwicz assumed the duties of National President on March 20.
National President Rodzwicz advises that he is conducting a conference call with the BLET Advisory Board today to discuss the matter in more detail.
Monday, March 24, 2008
Bumping a man on the active board
03/14/08 10:22
Stealth Team
03/14/08 07:55
I have learned that the SWAT team from Ft.Worth will
be out testing on the Phoenix Subdivision on or about
April 11, 2008. Please be extra viligent in obeying ALL the rules to the best of your ability, if a official says
your taking too long to do a job just remind them that you are working according to the rules and working
SAFELY if they give you a hard time over it please call me, I would just love to take them to task over something like that, please watch yourselves and stay out of trouble.
K.C. (Ken)Kyer
Local Chairman
BLET Division 647
Phoenix,Az.
623-205-8098 Cell
623-547-7515 Home
April 11, 2008. Please be extra viligent in obeying ALL the rules to the best of your ability, if a official says
your taking too long to do a job just remind them that you are working according to the rules and working
SAFELY if they give you a hard time over it please call me, I would just love to take them to task over something like that, please watch yourselves and stay out of trouble.
K.C. (Ken)Kyer
Local Chairman
BLET Division 647
Phoenix,Az.
623-205-8098 Cell
623-547-7515 Home
Trains and Trains
03/14/08 07:53
Whole Body Vibration Injury (FELA)
03/14/08 07:49
Everyone, attached is a sheet on Whole Body Vibration
information that
will explain effect of whole body vibration and that the railroads have
known about the damages it was causing to railroad employees. Railroads
have known about this for over 30 years and have chosen to do nothing
to protect the workforce. If you are having severe pain in neck, spine,
hips and legs, please contact RCVB & F Designated Legal Counsel.
They take many of these cases to trial and do not whole sale them
for pennies on the dollar.
RCVB&F has spent the money and done the research on WBV Injury
Scott Gibson
Field Representative
Rossi, Cox, Vucinovich,
Bremseth & Flaskamp PC
(575) 749-5144
1-866-900-3352
WBV info sheet (1)
will explain effect of whole body vibration and that the railroads have
known about the damages it was causing to railroad employees. Railroads
have known about this for over 30 years and have chosen to do nothing
to protect the workforce. If you are having severe pain in neck, spine,
hips and legs, please contact RCVB & F Designated Legal Counsel.
They take many of these cases to trial and do not whole sale them
for pennies on the dollar.
RCVB&F has spent the money and done the research on WBV Injury
Scott Gibson
Field Representative
Rossi, Cox, Vucinovich,
Bremseth & Flaskamp PC
(575) 749-5144
1-866-900-3352
WBV info sheet (1)