CSX TRANSPORTATION TO ADD FUEL SURCHARGE
CSX Transportation, the rail subsidiary of CSX Corp., said it will implement a fuel surcharge of about 4 percent, effective Oct. 25 to offset rising fuel prices. The surcharge will be adjusted according to the price of petroleum, which is averaging at $37 a barrel.
The surcharge will cover local and interline freight moves. It will be implemented by amending tariffs and will be applied to all traffic moving under tariffs, private price quotes and certain contracts that incorporate those general tariffs, CSXT said.
“Fuel prices have doubled during the past year,” said John W. Snow, chairman, president and chief executive of CSXT. “Recent spikes in prices alone will cost CSXT an additional $30 million for the remainder of the year and increase CSXT's fuel bill for the year to $265 million more than it paid for fuel in 1999. The railroad's 1999 fuel expenditures was $320 million.
CSX Intermodal, another CSX Corp. subsidiary, implemented a fuel surcharge in March. The current charge applied to intermodal shipments is 4 percent.