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Rail News: Mechanical

CSXI, UP raise fuel surcharges in April


CSX Intermodal's fuel surcharge for April is heading up — way up. On April 7, the company will implement a monthly fuel surcharge of 35 percent compared with March's 29.5 percent.

CSXI previously applied fuel surcharges of 26 percent in February, 27 percent in January and 28.5 percent in December. The drayage-only fuel surcharge for April is 43 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, March 31) 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 March 31, the DOE reported a diesel retail price of $3.96 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 Highway Diesel Fuel (HDF) surcharge will rise slightly in April to 21.5 percent vs. March's 21 percent. The Class I's fuel surcharges previously stood at 21 percent in February and 21.5 percent in January. The rate-based standard HDF surcharge program is based on the DOE's U.S. average on-highway diesel fuel price.

Contact Progressive Railroading editorial staff.

More News from 4/1/2008