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Rail News: Rail Industry Trends

CSXT to dole out fuel surcharge in smaller doses

On March 20, CSX Transportation announced plans to raise or lower its fuel surcharge in smaller increments to be more in line with crude oil-price fluctuations.

The Class I will adjust its surcharge — designed to recover some fuel costs from shippers — up or down 0.4 percent for every dollar oil prices increase or decrease from $23 per barrel, based on the 30-day average price of West Texas Intermediate crude oil. CSXT won't institute a surcharge if fuel prices drop below $23 per barrel.

Similar to all Class Is, CSXT now increases its surcharge in 2 percent increments for every $5-per-barrel rise in crude oil prices above the $23 mark.

CSXT plans to amend its fuel-surcharge program later this month, with the changes — which won't affect CSX Intermodal's fuel-cost recovery program — taking effect by mid-April.

Contact Progressive Railroading editorial staff.

More News from 3/21/2003