Thursday, November 30, 2006

Fuel Surcharges Continue to Mystify

Progressive Railroading is reporting that CSX has increased its Fuel Surcharge for December '06 to 17.5%.

However, BNSF not only has a lower Fuel Surcharge of 13% for December '06, but has notified its customers that the same 13% surcharge will apply in January '07!

That 4.5% difference amounts to more than a 34% higher price that CSX customers are paying for fuel versus BNSF customers. OK, argue with the math if you will, but the matter here is the difference. OK, too, argue with the methods that each railroad uses to determine their Fuel Surcharges. Neither case made will diminish the fact that such a difference looks bad to customers, and looks like more ammunition for some zealot bureaucrat who might ultimately tackle this issue.

***
Previous:

Fuel Surcharge: Still an Ugly Situation
Oil Prices, Railroad Profits, and Fuel Surcharges
Fuel Surcharge Tyranny