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<< Rail News Home: Mechanical

9/30/2004    Freight News

Rail News: Mechanical

CSXI's October fuel surcharge skyrockets to 10 percent

Because the price of diesel continues to climb, CSX Intermodal's monthly fuel surcharge is about to hit double digits. On Oct. 4, the company will begin applying a 10 percent surcharge to shippers' bills compared with September's 7 percent surcharge.

CSXI previously applied fuel surcharges of 5.9 percent, 5.5 percent, 5.9 percent, 5.6 percent, 4.9 percent, 4.5 percent, 4.5 percent and 3.7 percent in August, July, June, May, April, March, February and January, 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, Oct. 4) 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. 27, the DOE reported a diesel retail price of $2.01 per gallon.

The 10 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 14 percent.

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