Effective May 15, 2023, the amount TSPs can bill for fuel surcharge (FSC) on international shipments will be significantly less and the item code used to bill the charge has changed. Additionally, the fuel surcharge mileage may not match the mileage for the related transportation charge due to changes in the locations used to calculate fuel. These changes impact international shipments on transportation that occurs in CONUS, Hawaii, and Alaska.

Most significant, is a change to using the linehaul rate table to calculate the FSC on shipments delivered from destination storage-in-transit (SIT). This change results in a reduction of the FSC amount that can be billed by an average of 55-75% of the previous amount that could be billed.

The fuel surcharge is billed using items 513A or 513B. In the IT-23, there has been a change to when each item is used.

  • Item 513A is used to bill the fuel surcharge that applies to transportation charges for shipments moved directly from the origin residence to the port, or from the port to the destination residence, rather than being used for the FSC for all linehaul-related charges.
  • Item 513B is the item code used to bill the fuel on shipments that have moved from residence to origin SIT, from origin SIT to port, from port to destination SIT, or from destination SIT to residence, rather than all delivery FSC charges.

Additionally, for shipments delivering from destination SIT, the mileage for fuel surcharge is now calculated using the final delivery location, rather than block 18 which is used to calculate the actual delivery from SIT charge. When calculating the FSC for shipments going into origin SIT, the mileage is now calculated from the pick-up address to the actual warehouse location, rather than from block 19 to block 19, as the delivery into storage charge is figured. Depending on the circumstance, the change in the locations being used may result in more or fewer miles calculated for the fuel surcharge, but will overall be a wash.

There is nothing different that our customers need to do at the time of billing. Daycos will bill the applicable fuel surcharge for our full-service billing customers based on the locations and circumstances supported by the GBL, DD619/DD619-1, or OBL’s provided in the billing packet.

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