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Rail News: Rail Industry Trends

CSXI's, UP's fuel surcharges nudge up in November

CSX Intermodal has bumped up its fuel surcharge for the
second-straight month. Yesterday, the company implemented a November
surcharge of 24.5 percent.

CSXI previously applied a 23 percent surcharge in October, 21 percent
surcharge in September and 21.5 percent surcharge in August. The
drayage-only fuel surcharge for November is 31 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. 29) 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. 29, the DOE reported a diesel retail price
of $3.16 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 fuel surcharge
has risen from 16.5 percent in October to 17.5 percent in November.
The Class I will implement an 18.5 percent surcharge in December.
UP's rate-based standard Highway Diesel Fuel surcharge program is
based on the DOE's U.S. average on-highway diesel fuel price.

Contact Progressive Railroading editorial staff.

More News from 11/6/2007