CSX to Re-Baseline Fuel Surcharge Rates

CSX’s fuel surcharge in August is 48 cents per mile. CSX indexes their fuel surcharge to the average U.S. On-Highway Diesel Fuel Price and their surcharge is currently 1 cent per mile for every 4 cents per gallon by which the HDF Average Price exceeds a baseline of $1.999 (tariff 8661-B). This applies to public pricing documents.

CSX has announced that a new fuel surcharge (tariff 8662) will be effective January 1, 2015. The new surcharge will be 1 cent per mile for every 4 cents per gallon by which the HDF Average Price exceeds $3.749 per gallon. The HDF monthly average has
remained above $3.75 since March 2011 and the average over the past six months has been $3.95. CSX will increase the freight portion of their rates to absorb the new fuel baseline and they have stated that public pricing documents will be reissued effective the same date.

For rates expiring between now and the end of the year, the rates will renew (usually with increases), and then they will be revised in January when the new FSC begins. Although we have been told that there are currently no plans to change the FSC for contracts and
private publications, history suggests otherwise. It is likely that in time they will try to convert private rates to the higher
baseline, resulting in percentage increases on top of a higher base rate. Therefore, you should factor in the FSC change as you
evaluate your long term rate strategy. Below is an example of a situation in which we compared a forecasted re-baselined rate to a proportional rate and determined that the private through rate CSX has proposed shouldn’t be accepted.


Consider RSI’s rate management services if you don’t have the time to thoroughly analyze your rates.