CSXI's monthly fuel surcharge climbs to 20 percent

Diesel prices are surging upward and so is CSX Intermodal’s monthly fuel surcharge. On Oct. 3, CSXI will begin implementing a 20 percent surcharge for October.

The company’s fuel surcharge previously rose 3 percentage points to 17.5 percent in September after holding steady at 14.5 percent in August and July. CSXI’s surcharge rose 2.5, 0.5, 2 and 1.5 percentage points in June, May, April and March, respectively.

CSXI adjusts its monthly 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, Sept. 26) 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 Sept. 26, the DOE reported a diesel retail price of $2.79 per gallon.

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

The 20 percent surcharge applies to CSXI's ramp-to-ramp, ramp-to-door, door-to-ramp and door-to-door rates. The drayage-only fuel surcharge for October will be 26 percent.