Due to today’s rising fuel costs, it’s no surprise that everything from household items to industrial equipment have seen significant increases in prices. In an industry so reliant on shipping products from point A to point B, fuel can have a massive impact on the Frac Sand market. This jump in transportation prices for NWS is relevant to PHOENIX Process Equipment since we continue to provide Bucketwheels, HiFlo High Rate Thickeners, AltaFlo High Rate Thickeners, Belt Presses, Attrition Cells, and thickening and dewatering chemicals into Texas based frac sand plants.
In an article from Infill Thinking, it’s stated that railroad companies like UP and BNSF pass through a fuel surcharge that adjusts monthly off an index of US on-highway diesel prices (infillthinking.com). The chart below shows the Union Pacific Fuel Surcharge Rate. Due to the oil price spike partially related to the Ukrainian crisis, this rate has been surging to a multi-year high.
In an article from Infill Thinking, it’s stated that railroad companies like UP and BNSF pass through a fuel surcharge that adjusts monthly off an index of US on-highway diesel prices (infillthinking.com). The chart below shows the Union Pacific Fuel Surcharge Rate. Due to the oil price spike partially related to the Ukrainian crisis, this rate has been surging to a multi-year high.