rail

Union Pacific Alleges BNSF Hiked Grain Switching Rates Up to 472% to Curb Competition

Union Pacific filed a complaint with federal regulators Friday accusing BNSF Railway of eliminating reciprocal switching discounts and sharply raising rates for grain shipments at multiple locations. The complaint states BNSF canceled longstanding unit grain train switching rates of $105 per car at 90 locations, forcing UP customers to pay the standard merchandise rate of $295 per car—a 281% increase. At Grand Island, Nebraska, BNSF raised reciprocal switching rates by 472% for most shipments. BNSF also rejected unit train shipments bound for Island Park and Saginaw this month, requiring smaller block deliveries for interchange. UP contends the rate changes target locations where it recently won business from BNSF customers and aims to make UP service noncompetitive. The carrier asked the Surface Transportation Board to declare BNSF's actions unreasonable and unlawful and to prescribe reciprocal switching agreements at terminal locations.