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Rail News: Rail Industry Trends

Escalating crude-oil prices fuel potential Class I surcharge change

Shippers soon might be paying a higher fuel surcharge to Class Is. If the price of West Texas Intermediate (WTI) crude oil remains above $33 per barrel through March 18, Class Is plan to increase the surcharge from 2 percent (implemented Jan. 29) to 4 percent, effective March 20.

The surcharge would remain at 4 percent until WTI oil prices rise or fall below $33 for 30 consecutive days as published in the Wall Street Journal, according to a CSX Corp. statement.

Class Is use the following fuel-price recovery charge formula:

• $23 to $27.99 per barrel — no surcharge;

• $28 to $32.99 per barrel — 2 percent surcharge;

• $33 to $37.99 per barrel — 4 percent surcharge; and

• $38 to $42.99 per barrel — 6 percent surcharge.

Contact Progressive Railroading editorial staff.

More News from 3/12/2003