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Rail News: Intermodal

Three Class Is' fuel surcharges to fall in December

This month, CSX Intermodal’s fuel surcharge dipped below 30 percent because of declining crude oil prices. Next month, the company’s surcharge will fall below 20 percent.

On Monday, CSXI will begin to apply an 18.5 percent fuel surcharge for December. 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, 35 percent in April, 29.5 percent in March, 26 percent in February and 27 percent in January. The drayage-only fuel surcharge for December will be 24 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, Nov. 24) 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 Nov. 24, the DOE reported a diesel retail price of $2.66 per gallon.

Meanwhile, Union Pacific Railroad's carload rate-based Highway Diesel Fuel (HDF) surcharge will drop from November’s 28 percent to 23.5 percent for December. 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 16.5 percent in January.

Norfolk Southern Railway's fuel surcharge for rates referring to "Tariff NS 8003 Series" will decline from November's 12 percent to 3.9 percent for December. The Class I still is calculating a fuel surcharge for January.

Contact Progressive Railroading editorial staff.

More News from 11/26/2008