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Universal Service Contract — 10 Economic Price Adjustment Factor Update Bunker, Currency, and Fuel Adjustment Factor Refresh
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2023-10-31
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[PDF-2.64 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 10 (USC-10). 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 and 2019, 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. Several other methodological updates were made including an empirical estimation of the input substitution factor based on existing operational practices and International Maritime Organization (IMO) 2023 regulations.
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