[woodbutcher1963]

What is funny in my industry is that the railroads constantly add FUEL SURCHARGES based on the current price of diesel. When they contract out about two years in advance with futures contracts on diesel.

What I mean is it is not like the BNSF railroad stops the locomotive at the station to fill up based on todays pricing.

The current changes in the price of diesel will not really effect the railroads cost until 2028. Yet, they will raise their fuel surcharge on October first and again on November, December, etc. Typically 2-4% each month. Then they will announce new rates for 2027 sometime in November.

[Alberta's Child]

1. Does a Class I railroad like BNSF buy all of their diesel fuel under the terms of a single contract at a time (i.e., is the price they pay today for every gallon of fuel set under one contract)?

2. Are prices with capped quantities built into these contracts?

3. Would a Class I railroad be legitimately applying a fuel surcharge to a customer’s invoice for higher fuel costs incurred by other carriers in a delivery chain (drayage truckers, shortline or switching railroads, etc.)?