Owens Corning sets up new fuel plan
Aug 23, 2005 7:55 AM
Owens Corning will be converting its carrier fuel surcharge program from the industry standard DOE/EIA weekly retail survey base to a Petroleum Administration for Defense Districts (PADD) adjusted New York Mercantile Exchange (NYMEX) base, according to company information.
Carriers will transition to the new program in 2006.
The change will allow the company to better forecast transportation costs while positioning it to recover a portion of the fuel supplement paid to carriers by hedging the Owens Corning position.
The program will ensure that the company's carriers are paid the identical amount of money as they would have received under the former program.
The new program based on the NYMEX futures prices will give carriers the ability to understand how their fuel reimbursement is developing during the month.
Additionally, Owens Corning will be using its Web-based portal to provide a side-by-side comparison of the two fuel programs as an informational resource for carriers.
The portal will be modified to create pre-approved balance due transactions that will automatically credit or debit carriers when extraordinary events move the market disproportionately higher or lower than the market average.
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