Operator
Thank you. The next question is from Keith Schoonmaker with Morningstar.
Clarence Gooden
Good morning Keith.
Keith Schoonmaker
Good morning. I’d like to ask about the 2% decline in chemicals revenue per unit. Is this simply a mix issue where growth in crude, where the shipper provides a tank car, is it having a mix effect on this or is there something else at work?
Clarence Gooden
Absolutely. You are correct.
Keith Schoonmaker
Thus there’s no read through to lower margins on this business that I could track just from that?
Clarence Gooden
Right, that’s correct.
Keith Schoonmaker
And then a follow-up question on modal shift. I think the commentary in the Quarterly Report indicated automotive growth was constrained by customer transportation modal changes. Could you elaborate on that please?
Clarence Gooden
In the early part of last year in the heavy freezes that were occurring, some of the automakers pulled business off of the rail and went to the Holloway carriers. The Holloway carriers would not take the business without contract duration of around six months for obvious reasons and that’s what you’re seeing there.
Keith Schoonmaker
Thank you.
Operator
Thank you. The next question is from Justin Long with Stephens.
Clarence Gooden
Good morning, Justin.
Justin Long, Stephens
Good morning and thanks. First question I have is on service. With the locomotives coming on in the next couple of quarters and the service improvements being correlated to this additional power as you mentioned Oscar, is the expectation that you can get back to normal service levels that we saw in 2013 by the end of the second quarter, absent any major weather event?
David Baggs
Yeah, I think normal service levels, those were record service levels back then. I think we will gradually steam up to that area as the locomotives arrive and it will be gradual over the course of the year. Not quite ready to commit to those higher levels that quickly. Again, we have a spring peak that goes from Week 9 through Week 23, that’s the end of June, so I think there will be some lag effect but again I think you’re going to see the efficiency, the productivity and of course the growth that we’ve seen altogether start to come together certainly by the second half of the year.
Justin Long
Okay, great and second question I had was on pricing. I just want to get a better sense of how the pricing environment has improved and was wondering if you could provide any more color on how recent renewals have been trending. Generally speaking, are you seeing something closer to the mid single-digit on renewals versus the 2.5-3% overall core pricing that you posted recently?
Clarence Gooden
Justin, my friend David Baggs tells me numbers are not my friends so I can’t give you a specific number, but I would tell you that I am very pleased with the pricing that we’re getting. It has been very positive and you will be very pleased when we report our numbers for the first quarter this year.
Justin Long
Fair enough. I appreciate the comment. I know it’s been a long call, thanks.
Operator
Thank you. Our next question is from Donald Broughton with Avondale Partners.
Clarence Gooden
Good morning, Donald.
Donald Broughton, Avondale Partners
Good morning, Clarence. It turns out mom’s aren’t supposed to let their babies grow up to be truck drivers, I always thought it was cowboys but I’m glad to learn that this morning. That said, a year ago, on highway diesel and obviously that’s not the price you all pay but averaged $3.96 a gallon. Looks like we’re on course for it to average $3.10 a gallon or less in the first quarter this year. I know you’re getting base yield and you are doing a great job there but just the fuel surcharge overall, can you kind of give us some parameters? Those absence of the fuel surcharge and a drop from what is essentially $4 a gallon to $3 a gallon or almost, is it 1% yield headwind, 2% yield headwind, 5% yield headwind? What does it represent for your overall book of business?
