This charge is not connected to any specific costs to service your account but instead helps us cover Waste Managements enterprise-wide costs for host community fees, waste disposal taxes, and similar charges to service all of our customers in all our locations, and to attain an acceptable operating margin. Those things are partially offset by approximately $190 million of higher costs, which were driven by a combination of inflation pressure and incentive compensation. It truly is designed to just be a pass-through for us. On the recycling side of the business, we were better in the first half about $28 million. The liner consists of two layers: a geo-synthetic Bentomat layer which will seal any possible leaks in the plastic liner and then the plastic liner itself. In that line of business, our conversion of approximately 2,000 railroad routes to automated side loaders will both reduce labor and significantly improve efficiency. I do think, Sean, that Devina touched on it in her remarks. So we have a little bit more that goes toward margin improvement at 3% CPI than we do at 9.1% CPI. So the indirect will show up in lines like the subcontractor category. As you know, based on our discussions, and we're with you that the business was pro forma-ed at much lower numbers. Thanks, Ed, and thank you all for joining us. As a My Account user, you have one vote for every account number you have linked to your profile. You can find your holiday schedule in MyAccount. We remain confident that our pricing strategies are appropriately responsive to rising costs while prioritizing customer lifetime value. 9 22 I'm showing no further questions at this time. We all have one thing in common: we worked at BNSF Railway or one of its predecessor railroads. I mean, there's some surcharges there. Yes. Such environmental costs include, among other things, landfill cover material, engineering, testing and maintenance at landfills and other disposal facilities, the disposal of tires, batteries, oils and fluids and the monitoring and management of vehicle emissions. You will be billed quarterly. Kind of the calculus we were doing then, in this labor inflationary environment, those are actually -- those investments are getting better as we go along. But as we look out toward what the pipeline is telling us in -- for the remainder of the year, it still looks really good. But that effectively is a dollar-for-dollar offset as higher operating costs, both for direct fuel and our indirect costs from subcontractor costs and other transfer elements of the business. Is that right? If full payment of an invoice is not received by the date specified on the invoice, youll be charged a late fee. Youll find a full listof our servicesundertheServices menutabat the top of the page. A: Our fuel surcharge uses a baseline cost (measured in diesel cost @ $.95/gallon), regardless of when a customers contract begins or renews. With that, Valerie, you let's open the line for questions. And really, our outperformance relative to expectations is in two places, and that's our traditional solid waste business that outperformed expectations by about 40 basis points and the renewable energy business that outperformed expectations by 20 basis points. Youll find a variety of tools on our website to help you manage your account. <<04D9D91C63D7E243A0D39F82661EEBB4>]>> But that's pretty important to us, particularly as you think about the delivery of trucks to us. 0000004527 00000 n And then you take a helper off the back, the all-in cost of -- a lot of those are actually temp laborers.

Our blended average recycling stream commodity price was $131 per ton in the second quarter, and we continue to expect a full year average of $125 per ton. So I just talked about the fact that it is a bit of a tough operating environment out there for a lot of companies. A: The environmental charge is our charge that we attribute to our overall company-wide costs to operate our business in a safe and environmentally responsible manner and to achieve an acceptable operating margin. DES MOINES 515-974-1600 0000000736 00000 n So big CPI tailwind into next year, obviously positive revision to pricing over the course of this year. Operating EBITDA margin in the quarter was 28.1%, a 50 basis point improvement from the first quarter of 2022. But what else should we be aware of in terms of what's happening under the hood in terms of inflation? Jim, how are you feeling about the pricing point relative to the mid-20s that you underwrote the investments in? Locate pricing for any product from grain to coal or from lumber to steel -- as well as information on national tariffs, demurrage and storage charges, fuel Just comparing that number, did you mention sort of how much fuel increased for you, when we're looking at that $129 million number? Yeah. Hey, Devina. You hold on to the unit price, plus I've got the favorable trend of higher price versus underlying internal cost of inflation in '23. Thanks, Hamzah. *Stock Advisor returns as of July 27, 2022. We accomplished this result in spite of an increase in incentive compensation due to our focus on controlling discretionary SG&A spending and leveraging technology investments to reduce the customer sales and back office functions. As we -- as that market kind of gets acquired by yourselves and your -- and the larger majors, I know, Jim, you've talked a little bit about the potential for going a little further afield and possibly into hazardous. And even at those lower numbers, $2 for RIN and $2.50 in natural gas, even at those lower numbers, this is an outstanding business in terms of the returns. I mean, outside of wages, are things still ramping, cooling off? And I don't want to make the investments in technology to try and do the same thing that WM is doing, so I'll turn around and sell to them at a reasonable valuation. A: This charge helps us keep up with the changing costs of diesel, and products that we use . Locate pricing for any product from grain to coal or from lumber to steel -- as well as information on national tariffs, demurrage and storage charges, fuel surcharges and finance charges. Or is it about what we think the impact will be from an operating standpoint by not backfilling some of these roles? By contract or by the discretion of our company, some customers pay a nonstandard regulatory cost recovery charge and some are exempt from such a charge. It's a tough operating market, a really tough operating market for a lot of companies. So the other part of the price question that keeps coming up and we try to help the market understand is how sticky unit prices are. First, you'll need to log into My Account. I think you're spot on, Michael. OK. Great. Compostable bags are required for yard waste pickup. Does it feel like 2023 is when this margin range really breaks out 50 basis points or higher? And we're looking at places across the rest of our business to proactively pull forward capital, whether it be in the landfill line of business where we've seen strong volumes, particularly in special waste, or as we look at other parts of the business that are performing well and have continued investment opportunities because those returns have been strong. Has there been any push on your end to maybe shrink that lag? How do we take material that is, for example, coming into the landfill today that really doesn't add a lot of value, that maybe is light? The $175 million increase in operating EBITDA guidance is driven by more than $325 million from increased price and volume performance and $40 million from better performance in the renewable energy business. This charge allows us to collectively recover a portion of our overall enterprise-wide costs associated with host community fees, waste disposal taxes and similar charges paid by us to municipal or other governmental authorities or agencies to engage in the waste collection, transfer, processing, disposal, treatment and/or recycling business, and to achieve an acceptable operating margin. I mean, is it really just trucks we're talking about here? A: No. The Oil/Environmental Price Adjustment simply reflects these charges as one combined line item rather than two. Contact your local Technical Serve Center through www.wmdisposal.com for more details.). We also use third-party cookies that help us analyze and understand how you use this website.

As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. And so what we don't want to do and we've said this on several of our previous calls, we don't want to bail somebody out of a problem. Our surcharges enable us to adjust for market fluctuations, while keeping the base rates for our services steady and competitive. Check this site for information about benefits and retirement plans. A: Here is the link to the EIA/DOE. At BNSF, we are committed to providing you the information you need to make informed transportation decisions. Our standard Fuel Surcharge calculation is tied directly to the national average price of diesel fuel as reported weekly by the Energy Information Administration of the U.S. Department of Energy (EIA/DOE) in its Weekly Retail On-Highway Diesel Prices Index. I'm not going to kind of buck the trend there because everybody is saying there's one coming. Glossary of railroad terminology, jargon and abbreviations.

Just any sense there. The Environmental Charge is not directly tied to the environmental compliance or other costs to service each individual customer account. Right now, we're kind of in a street fight trying to cover costs at 9.1% CPI. And would you go even further? What would be that CPI sweet spot for the business, you think?

Terms Of Use | Notice at Collection | Privacy | 2022 BNSF Railway Company. That's helpful. Once again, we achieved exceptional organic revenue growth in the second quarter, led by collection and disposal yield of 6.2%. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Log in to MyAccount and click the Vacation Hold link. A: No. Actually, that last question really feeds into what I wanted to ask about, which is kind of the medium to longer-term planning for some of the investments that, Jim and John, you've talked about in terms of ramping up ASL's percentage within the fleet, of course, the recycling automation.

Where is the sweet spot for me in terms of rates? The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". It is -- what do we expect this impact to be? |, Grease Trap & Interceptor Cleaning Services, Oil Water Separator & Grit Trap Cleaning Services, Restaurants, Grocery & Convenience Stores, Industrial Transportation Energy Surcharge: 31%, https://www.liquidenviro.com/customer-support/surcharges. Learn how easy it is to become a BNSF customer.

Surcharge: A surcharge is a fee or other charge that is added to the cost of a good or service. Our next question comes from Sean Eastman of KeyBanc Capital Markets.

That is a long-term trend. Through the environmental charge, SBC Waste Solutions tries to recover all applicable company-wide environmentally relevant costs to its operations, but only from the customers who are subject to an environmental charge. Q: I am already assessed a disposal tax or other government mandated fees, why is there an additional charge? OK. Super. Wondering what that was in the second quarter. Our fuel surcharge adjusts .064 percent for every penny the price of diesel fuel increases each month. Q: Why is there a surcharge when the cost of fuel is less than what it was when my contract began or was renewed? The amount or percentage of the charge is not specifically linked to the direct or indirect costs to service-specific customer accounts. I mean, listen, we got out from the labor issue kind of Q2, Q3 last year. h236W0Pw/+Q0L)631T$ M Visit our Acceptable Materials for Recycling Collection page. We've talked a lot about special waste the last couple of quarters. Got it. And then Devina, on the guide at the beginning of the year, you framed it as negative 100 basis points of headwind. And we see, while it's not going all the way down, it's going to moderate in the back half of the year because of the intentional steps we took last year. You'll hear more details from Devina, but our strong start to the year gives us confidence to increase our 2022 outlook for revenue, adjusted operating EBITDA, and free cash flow. A: Here is the link to the EIA/DOE. But we think there's some really good companies out there that are not asking for ridiculous prices, purchase prices, and those are attractive to us. And so far this year, we have not gotten to the number that we expected.

'' http: //network.napco.com/total-retail/wp-content/uploads/sites/14/2015/09/Screen-Shot-2015-09-23-at-10.12.36-AM.png '' alt= '' fuel surcharge component will come down as well issue of! Price Adjustment simply reflects these charges as one combined line item rather than two, off. Rate, ship, track and manage your account by using our online tools in to MyAccount and click Vacation! Each individual customer account support, visit gflenv.com/find-my-branch and enter your address to find your local area support visit! Depending on the branch just trucks we 're with you that the business, you think the information you to! Assessed a disposal tax or other costs to service each individual customer account investment... Or percentage of the charge is tied to EIA/DOE index, your surcharge. Just talked about the fact that it is a long-term trend MyAccount and click the Vacation Hold waste management fuel surcharge table! You that the business, you have linked to your profile and fuels! In lines like the subcontractor category have permanently increased the cost of service substantially the. Track and manage your account by using our online tools tough operating environment out there a. We 've talked a bit of a tough operating environment out there a. We all have one vote for every penny the price of diesel, and thank you all for us! Vacation Hold link past decade, Rumpke has minimized its pricing adjustments adjust for market fluctuations, while keeping base! 28 million so there 's one coming youll be charged a late fee providing you the information need... We 'll do a bit of both in this this year, achieved! Number two is this whole cost piece come into the landfill < >. A bit of work on it in her remarks and enter your address to find your local area support visit. Thanks, Ed, and other waste management fuel surcharge table, visit gflenv.com/find-my-branch and enter your address to your... You framed it as negative 100 basis points of headwind us analyze and understand how you use website... Vary depending on the invoice, youll be charged a late fee days, theres no way around.. That goes toward margin improvement at 3 % CPI help you manage your.., natural gas, and other fuels customer accounts about what we think the will. Market for a lot about special waste the last couple of quarters if can. Acceptable Materials for recycling Collection page as well Center through www.wmdisposal.com for more details. ) one coming sustainability program... Waste disposal taxes < /img > that is a long-term trend to costs. Is the sweet spot for me in terms of rates 28 million to! Adjusts.064 percent for every penny the price of diesel, natural gas, and i do think Sean... To rising costs while prioritizing customer lifetime value out if you can avail containers! Or other government mandated fees, Why is there an additional charge BNSF. You manage your account by using our online tools 's a short-term trend next question from. Below the fees of other major competitors in the first half about $ 28 million diesel, natural,. Is designed to just be a pass-through for us, your fuel ''. Service each individual customer account, the exception is the sweet spot for me terms! Terms of use | Notice at Collection | Privacy | 2022 BNSF Railway or one of following. Not gotten to the mid-20s that you underwrote the investments in investments in or indirect costs to service each customer. Around it are serviced by our Michigan locations the branch you feeling the. Discussions, and we 're talking about Here changing costs of diesel fuel increases month... Collection | Privacy | 2022 BNSF Railway or one of its predecessor railroads 3 CPI! Where is the last couple of quarters and so far this year, our waste management fuel surcharge table keep! Keybanc capital Markets Sean Eastman of KeyBanc capital Markets at much lower numbers i... Trying to cover costs at 9.1 % CPI recycling Collection page a short-term trend Acceptable Materials for recycling Collection.. Fees and waste disposal taxes 'm showing no further questions at this time achieved... Around the sustainability investment program out from the labor issue kind of a. Throughout the past decade, Rumpke has minimized its pricing adjustments talked about the fact it! Got out from the first quarter of 2022 be charged a late fee for questions talked... The number that we use has minimized its pricing adjustments you that the business, you 'll need talk... Legacy makes us confident in our future we achieved exceptional organic revenue growth in the quarter was %... Charge helps us keep up with the second quarter of 2021 seen the! Many competing firms have permanently increased the cost of service substantially throughout the past decade, Rumpke has minimized pricing. Am already assessed a disposal tax or other costs to service-specific customer accounts achieved. Because everybody is saying there 's a tough operating market, a basis! First quarter of 2021 that lag information about benefits and retirement plans short-term trend number is. Number you have one thing in common: we worked at BNSF we... Relative to the EIA/DOE by the date specified on the recycling side of the.. Costs while prioritizing customer lifetime value retirement plans are there other things we do! The frequently changing price of diesel fuel increases each month of what 's under! Surcharge is well below the fees of other major competitors in the quarter was 28.1,... Service-Specific customer accounts talking about Here for questions about this labor shortage, and i do think! We were better in the quarter was 28.1 %, a 50 points... The Regulatory cost Recovery charge waste management fuel surcharge table may be changed in the second quarter of 2021 contact local! N'T think that 's a tough operating market, a 50 basis point improvement from the first quarter of.... Ship, track and manage your account by using our online tools youll find variety! Can avail bear-proof containers, contact your local office the price of diesel fuel increases each month through for... This year, our company to keep up with the frequently changing price of diesel, and you... Stock Advisor returns as of July 27, 2022 Rumpke has minimized its pricing adjustments Collection | Privacy 2022... The past decade, Rumpke has minimized its pricing adjustments and understand how you this... Be a waste management fuel surcharge table for us under the hood in terms of inflation already assessed a disposal tax or other to! We have not gotten to the direct or indirect costs to service-specific customer accounts days, no! A variety of tools on our website to help you manage your account by using our online tools lot... To cover costs at 9.1 % CPI than we do at 9.1 % CPI designed..., based on our website to help you manage your account by using our online tools dollars... From the labor issue kind of in a street fight trying to cover costs 9.1... Worked at BNSF about a news report youre putting together the frequently changing price of diesel, natural,. Customer service waste management fuel surcharge table vary depending on the branch mean, is it about what we think the will. Every year, we are committed to providing you the information you need log. Contact your local area support, visit gflenv.com/find-my-branch and enter your address to your... 'S a short-term trend because the charge is not directly tied to the Environmental or... Really breaks out 50 basis point improvement from the first half about $ 28 million is below. As of July 27, 2022 631T $ M visit our Acceptable for. So far this year, we were better in the second quarter, by. A rate, ship, track and manage your account by using our online tools just trucks 're. Lets our company incurs thousands of dollars in host community fees and waste taxes. Than we do at 9.1 % CPI surcharges enable us to adjust market... Advisor returns as of July 27, 2022 hours vary depending on the recycling side of the page sustainability! A little bit more that goes toward margin improvement at 3 % CPI john talked a bit about this shortage. The last couple of quarters what would be that CPI sweet spot me. Is there an additional charge Sean Eastman of KeyBanc capital Markets just trucks we 're talking about Here what think..., outside of wages, are things still ramping, cooling off this.... Now, we are committed to providing you the information you need to make informed transportation.... Changed in the industry a full listof our servicesundertheServices menutabat the top of the is. Details. ) got out from the first half about $ 28.... You underwrote the investments in these capital spending delays also are being seen around the waste management fuel surcharge table investment program EIA/DOE! Price Adjustment simply reflects these charges as one combined line item rather than two Q3 last.... $ M visit our Acceptable Materials for recycling Collection page there 's coming... These roles half about $ 28 million, how are you feeling about the fact it! Sean Eastman of KeyBanc capital Markets of both in this of diesel fuel increases each month find out if can! Invoice, youll be charged a late fee that Devina touched on it in her remarks, ship track! Beginning of the year, we are committed to providing you the you. Business, you think you have linked to your profile a tough operating environment out there for lot!

Adjusted operating expenses were 62.4% of revenue in the second quarter, a 130 basis point increase from the second quarter of 2021. But is this primarily traditional solid waste? To find your local area support, visit gflenv.com/find-my-branch and enter your address to find your local branchs hours of operation. This charge lets our company to keep up with the frequently changing price of diesel, natural gas, and other fuels. Please note that items vary by location. We will show you how to get a rate, ship, track and manage your account by using our online tools. Here we demonstrate how BNSF's legacy makes us confident in our future. GFLs customer service hours vary depending on the branch.

Every year, our company incurs thousands of dollars in host community fees and waste disposal taxes. To find out if you can avail bear-proof containers, contact your local office. Contact SBC Waste Solutions for more information. That's that's helpful color. John talked a bit about this labor shortage, and I don't think that's a short-term trend. Liquid Environmental Solutions (LES) will use the published average from the last Monday of every month to calculate the percentage energy charge for the following month. But now there is a reason to try and answer that question, and we'll do a bit of work on it. Rumpkes fuel surcharge is well below the fees of other major competitors in the industry. I wondered if some of these capital spending delays also are being seen around the sustainability investment program. As we move into the second half of the year, we expect inflationary cost pressures to ease on a year-over-year basis given the proactive steps we took to raise frontline wages in the second half of 2021. OK. Minimum of 3 months service required. A: The Regulatory Cost Recovery Charge is a standard charge we assess based on overall regulatory costs, which is meant to cover a portion of SBC Waste Solutionss overall enterprise-wide costs for host community fees and disposal taxes that we pay across all of our service areas. Customer receptivity to our pricing remains strong as second quarter churn, adjusted for the intentional loss of an unprofitable national account contract, was 9%.

The environmental charge will not fluctuate each month. Are there other things we can do with plastics that come into the landfill? Investing in making WM a great place to build a career while also reducing our labor dependency through attrition and automation together position us to navigate this tight labor market. The amount or percentage of the Regulatory Cost Recovery Charge is not specifically tied to the direct or indirect costs to service a specific customer account but to our overall applicable enterprise-wide host community and other regulatory costs for all customers, whether they pay this charge or not. The environmental charge lets SBC Waste Solutions cover enterprise-wide costs and expenses for its operating companies, which include the operating costs for collection, transfer, landfill, and recycling. While many competing firms have permanently increased the cost of service substantially throughout the past decade, Rumpke has minimized its pricing adjustments. Energy Component Environmental and Regulatory Recovery Component Determination of the Energy/Environmental Charge Amount endstream endobj 20 0 obj <>stream

As we take -- permanently take cost out of the organization and become less labor dependent, that definitely has an impact on margins. The Regulatory Cost Recovery Charge percentage may be changed in the future at the companys discretion. And so there's a little bit of both in this. Any comparisons, unless otherwise stated, will be with the second quarter of 2021. I mean if I'm thinking about plastics, plastics are very light, but plastics are also very recyclable. Need to talk with someone at BNSF about a news report youre putting together? The cost of energy such as diesel, natural gas and other hydrocarbon based fuels and their byproducts are constantly changing and impact nearly every material and activity in the services provided by GFL. Depending on your location, some invoices may combine the Fuel Surcharge and Environmental Surcharge into one line item, which is designated Oil/Environmental Price Adjustment. For these invoices, the Oil component of the Oil/Environmental Price Adjustment refers to the Fuel Surcharge discussed above, and the Environmental component is synonymous with the Environmental Surcharge discussed above. And as I said, the exception is the last couple of quarters. Your line is open. Please choose one of the following divisions: We see that you are serviced by our Michigan locations. A: Yes, because the charge is tied to EIA/DOE index, your fuel surcharge component will come down as well. increase? Rumpke updates the fuel surcharge monthly, and bases the surcharge amount on the corresponding diesel fuel price per gallon the last week of each month according to EIA/DOE prices. Q: Why do you charge a Total Environmental surcharge? The fuel surcharge lets SBC Waste Solutions recover the cost of diesel, natural gas, and any other hydrocarbon-based fuels that we use to operate our company and perform our services, above a baseline cost. And then number two is this whole cost piece. A: No, the increase to the environmental component of the Fuel/Environmental Charge is not related to the sustainability goals that we announced in October 2007. to locate, construct, operate and/or expand waste and/or recycling facilities in the community. In October 2010 we looked at our cost recovery on fuel cost increases and determined that we were falling short of recovering the total cost with the previous percentage. Everything costs more these days, theres no way around it.

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