CSX Demurrage Rates to Increase effective July 1, 2006

Released: Apr 18, 2006

Dear CSX Customer and Tariff CSXT 8100 Subscriber:

We at CSX are continuously striving to improve service to our customers. During this time of sharply heightened demand for rail transportation and services, we realize how important it is to increase the available supply of empty cars.

With the high capital costs of rolling stock, efficient utilization of the existing car fleet is the most effective way of increasing available cars for our customers. At CSX, we recognize that challenge begins with us. Our operations have focused on executing our One Plan for service improvements -- and it's working. Our service improvements have resulted in significantly improved velocity and dwell in recent weeks. This means cars are moving more quickly from place to place, and more car days are available. Our service improvements are increasing equipment availability across our railroad, but other measures will also help increase car fleet capacity.

Unfortunately, we continue to see significant idle time in customer accounts at origins and destinations. Many customers are holding cars under demurrage, depriving other CSX customers of much-needed car days. We have concluded that CSX's low demurrage charge, which has not materially changed since prior to 2001, must be adjusted to address the new demand reality.

On July 1, 2006 CSX will increase some of our tariff demurrage rates to encourage the prompt loading and unloading of railcars.

• The daily demurrage rate for railroad owned cars will be increased to $90.00 effective July 1, 2006, to promote the timely handling of cars. Visit our supplemental services page to find tips and information on significantly reducing demurrage.
• The daily demurrage rate for refrigerated cars will be increased to $150.00 effective July 1, 2006. In addition to improving the availability of this equipment for shippers everywhere, the increase also helps to compensate CSX for high car hire costs incurred when unloading delays occur on our line. Every effort is being made to provide customers with a seamless method of transporting perishable goods.

Many of the supplemental charges assessed by CSX, including demurrage, may be avoidable with careful planning. CSX has prepared a Supplemental Services Guide that contains a brief explanation of the most commonly used supplemental services, and helpful strategies to plan for or even eliminate the need for those services and related expenses. View the Supplemental Services Guide. Further details and all legally applicable terms and conditions are provided in the CSXT 8100 Tariff.

CSX intends that these changes will result in improved car availability and, lower total demurrage expense for our customers. If you have questions about these changes, please contact your sales representative, visit the supplemental services pages on CSX.com or e-mail us at Rail_Logistics_Svcs@CSX.com. If you would like to arrange for ShipCSX training, call our E-business Help Desk at 1-877-744-7279, option 2, option 1.