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Rail News: Intermodal

CSXI's fuel surcharge to rise, UP's carload rate-based surcharge to hold steady in March

CSX Intermodal's fuel surcharge is heading up in March — way up. On Monday, the company will implement a 29.5 percent surcharge for the month compared with February's 26 percent fuel surcharge.

CSXI previously applied a 27 percent surcharge in January, 28.5 percent surcharge in December, 24.5 percent fuel surcharge in November and 23 percent surcharge in October. The drayage-only fuel surcharge for March is 37 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, Feb. 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 Feb. 25, the DOE reported a diesel retail price of $3.55 per gallon.

If the U.S. National Average Fuel Index equals or exceeds $2.79 per gallon, CSXI increases its fuel surcharge 0.5 percent for every four-cent increase in fuel price.

Meanwhile, Union Pacific Railroad's carload rate-based fuel surcharge in March will match February's 21 percent. The Class I will implement a 21.5 percent surcharge in April.

The railroad's fuel surcharges previously stood at 21.5 percent in January, 18.5 percent in December and 17.5 percent in November. UP's rate-based standard Highway Diesel Fuel surcharge program is based on the DOE's U.S. average on-highway diesel fuel price.

Contact Progressive Railroading editorial staff.

More News from 2/26/2008