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12/30/2008



Rail News: Rail Industry Trends

Three Class Is to further drop fuel surcharges in January


With diesel prices continuing to decline, CSX Intermodal’s monthly fuel surcharge will drop again in January.

On Monday, CSXI will begin to implement a 14.5 percent fuel surcharge vs. December’s 18.5 percent. The company previously applied fuel surcharges of 26.5 percent in November, 34.5 percent in October, 37 percent in September, 43 percent in August, 43.5 percent in July, 44.5 percent in June, 37.5 percent in May and 35 percent in April. The drayage-only fuel surcharge for January will be 19 percent.

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, Dec. 29) 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 Dec. 29, the DOE reported a diesel retail price of $2.33 per gallon.

Meanwhile, Union Pacific Railroad's carload rate-based Highway Diesel Fuel (HDF) surcharge will drop from December’s 23.5 percent to 16.5 percent for January. 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 decrease all the way to 0 percent in January after falling to 3.9 percent in December.


Contact Progressive Railroading editorial staff.

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