Three Class Is to cut fuel surcharges next month

It’s been eight months since CSX Intermodal’s monthly fuel surcharge has dipped below 30 percent. The November surcharge will break that streak.

On Monday, CSXI will begin to apply a 26.5 percent fuel surcharge for November. The company previously applied fuel surcharges of 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, 35 percent in April, 29.5 percent in March, 26 percent in February and 27 percent in January. The drayage-only fuel surcharge for November will be 33 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, Oct. 27) 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 Oct. 27, the DOE reported a diesel retail price of $3.29 per gallon.

Meanwhile, Union Pacific Railroad's carload rate-based Highway Diesel Fuel (HDF) surcharge will drop from October's 31 percent to 28 percent for November. The rate-based standard HDF surcharge program is based on the DOE's U.S. average on-highway diesel fuel price. UP's HDF surcharge then will fall to 23.5 percent in December.

Norfolk Southern Railway's fuel surcharge for rates referring to "Tariff NS 8003 Series" will decline from October's 15.9 percent to 12 percent for November. The Class I is projecting a 5.4 percent surcharge for December.