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Universal Service Contract — 9 Economic Price Adjustment Factor Update: Bunker, Currency, and Fuel Adjustment Factor Refresh
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2019-08-01
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[PDF-3.66 MB]
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Edition:Final Report
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Abstract:This report describes the refresh of the USTRANSCOM Economic Price Adjustment (EPA) factors for use in the Universal Service Contract 09 (USC-09). The three EPA factors, the Bunker Fuel Adjustment Factor (BAF), the Currency Adjustment Factor (CAF), and the Inland Intermodal Fuel Adjustment Factor (FAF), developed by Volpe in the 2009 study and updated in 2013, are the starting point for this update. Using updated shipment data from USTRANSCOM along with improved data methods, the technical factors for each EPA were updated. The methodology to determine the buffer zone for the BAF and CAF was updated to reflect actual, observed volatility.
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