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8/26/2008



Rail News: Rail Industry Trends

Three Class Is' monthly fuel surcharges reflect diesel price drop


Because diesel prices have dropped this month, CSX Intermodal's fuel surcharge is heading down in September. On Monday, the company will implement a 37 percent fuel surcharge for September vs. August's 43 percent surcharge. The drayage-only fuel surcharge for September will be 46 percent.

CSXI previously applied fuel surcharges of 43.5 percent in July, 44.5 percent in June, 37.5 percent in May, 35 percent in April, 29.5 percent in March, 26 percent in February and 27 percent in January.

CSXI adjusts its surcharge the first Monday of each month based on the difference between the U.S. Department of Energy's (DOE) price index the previous Monday (in this case, Aug. 25) and $1.10. CSXI calculates the percent difference between the DOE's "Retail Diesel Fuel Price Index" and $1.10, multiplies the figure by 10 percent and then again by 100. On Aug. 25, the DOE reported a diesel retail price of $4.14 per gallon.

Meanwhile, Union Pacific Railroad's carload rate-based Highway Diesel Fuel (HDF) surcharge will rise slightly to 35 percent in September vs. August's 34.5 percent, then fall to 31 percent in October. The rate-based standard HDF surcharge program is based on the DOE's U.S. average on-highway diesel fuel price.

Norfolk Southern Railway's fuel surcharge for rates referring to "Tariff NS 8003 Series" will hold steady at 21 percent in September compared with August's level, then tumble to 15.9 percent in October.


Contact Progressive Railroading editorial staff.

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