Fuel surcharge so high, it could buy a suit and a coffee
Railroads cash in on diesel prices, but the real cost is in the markup.
The story
Three major railroads reported record revenue due to high diesel prices, which shifted freight from trucks to rail. Fuel surcharges drove much of the increase, but railroads expect rate hikes in 2027.
Source: wwd.com
Our reading
Railroads are getting a fuel surcharge so high it could pay for a new suit. The kind of suit that makes you feel like you’re in a meeting with a CEO, even if you’re just trying to move a few pallets. The surcharge is so big, it’s almost like the railroads are charging for the air you breathe—except the air is just diesel fumes and the breathing is done by the truckers who are now out of work. The railroads say they’re not profiting from the crisis, just passing along the cost. But if you’ve ever tried to buy a suit that doesn’t make you look like a corporate drone, you know that the real cost is in the markup, not the material.
