| Title | Calculation of bunker fuel, currency, and inland freight fuel price adjustment factors for USTRANSCOM commercial shipping contracts |
|---|---|
| Record ID | 52856 |
| Personal Name Creator |
Biernbaum, Lee; Caputo, Mario C.; Gentile, Mark J.; Hyde, David; Lawson, Gustaf; Lee, Douglass B.; Mergel, Joseph; Pace, David |
| Source | 216p. in various pagings |
| Corporate Creator | John A. Volpe National Transportation Systems Center (U.S.) |
| Corporate Contributor |
United States. Transportation Command |
| Publisher | John A. Volpe National Transportation Systems Center (U.S.) |
| Publication Date | 20090700 |
| Language | English |
| Abstract | Military units that move equipment and supplies to and from points around the globe rely on USTRANSCOM to provide sea, land, and air shipping services when needed. USTRANSCOM, for 95% of all tonnage moved, contracts for intermodal shipping services from regularly scheduled commercial carriers. The offered rates—per measurement ton or per TEU—apply to a given origin-destination pair for as much as 17 months from the time the offers are made. During that interval, prices of fuel and foreign currencies may fluctuate. In order to shift some of this volatility risk to shippers, carriers apply price adjustment factors to their published ocean and inland rates to compensate the carriers (or the shipper) for price changes. The specific adjustments apply to bunker and diesel fuel for ships, selected foreign currencies, and surface transportation fuel. This study describes the theoretical and practical considerations in designing these three types of price adjustment factors, and proposes methods for calculating the technical factors and their components. |
| Rosap ID | dot:12116 |
| Rosap URL | https://rosap.ntl.bts.gov/view/dot/12116 |
| TRT Terms | Inland water transportation; Shipping; Intermodal services; Contract rates; Prices; Bunkering; Currency adjustment factor; Pricing; Tonnage; Freight traffic |
| General Subjects | Price adjustment factors; Price fluctuation; Bunker fuel adjustment factor; Currency adjustment factor; Fuel adjustment factor |
| Classification | NTL - ECONOMICS AND FINANCE - ECONOMICS AND FINANCE; NTL - ECONOMICS AND FINANCE - Economic Impacts; NTL - ECONOMICS AND FINANCE - Marine Economics and Finance; NTL - ECONOMICS AND FINANCE - Freight Economics and Finance; NTL - MARINE/WATERWAYS TRANSPORTATION - Ships and Vessels; NTL - MARINE/WATERWAYS TRANSPORTATION - Marine Economics and Finance; AGR - FREIGHT - FREIGHT; AGR - FREIGHT - Inland Waterways; AGR - FREIGHT - Intermodal Freight Transportation; AGR - FREIGHT - Shippers; AGR - FREIGHT - Freight Rates; NTL - FREIGHT - Freight Economics and Finance |
| Geographical Coverage |
United States |
| TRIS Online Accession No |
1543591 |
| Availability | Volpe National Transportation Systems Center, Technical Reference Center |
| Resource type | Tech Report |
| URL | https://ntlrepository.blob.core.windows.net/lib/52000/52800/52856/ShippingCostAdjust072309.pdf |
| Format | |
| Database | NTL Digital Repository |