US ethanol maker to go FOB due to fuel costs

03 June 2008 22:52  [Source: ICIS news]

HOUSTON (ICIS news)--US industrial ethanol maker Grain Processing Corporation (GPC) said on Tuesday it plans to start charging its customers on a FOB (free-on-board) basis in 2009 due to the impact of surging crude oil prices on transportation costs.

Iowa-based GPC said in a letter to customers that freight would be covered as a separate line item on its accounts, starting in January 2009.

The company said it decided to make an early announcement to give its buyers time to adjust for the change.

The proposed change on the pricing scheme is the first of its kind in the US industrial ethanol sector, a company official said.

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By: William Lemos
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