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How long until rail sees the impact of rising fuel costs?

Posted by Todd Tranausky on Jun 3, 2021 1:17:48 PM

Todd Tranausky was asked: "When will rising fuel costs begin to affect rail markets?"

This Q&A response from the FTR experts came from our April Rail Outlook (Carload + Intermodal) webinar. View the video and the key takeaways below. 

Key Takeaways:
  • There is a 60-day lag on fuel surcharges, so any hikes in fuel prices will be noted by railroads and caught up in fuel surcharges two months later. 
  • Not all carriers have 100% coverage of fuel surcharges, exceptions can include legacy contracts and certain segments such as coal.

 

Tags: railcar, coal, intermodal, Rail, fuel, fuel costs

 

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