rail

Union Pacific Challenges BNSF Reciprocal Switching Rate Increases

Union Pacific filed a complaint with the Surface Transportation Board on May 15, challenging BNSF's reciprocal switching tariff modifications that took effect May 1. UP claims BNSF canceled longstanding reciprocal switching rates for unit train grain shipments, nearly tripling costs for grain shippers on BNSF lines seeking access to UP. The railroad also alleges BNSF refused to perform reciprocal switching for grain unit trains. UP further contends BNSF dramatically increased reciprocal switching rates for other commodities at targeted locations. At Grand Island, Nebraska, rates jumped 472 percent to $1,395 per car from $295. UP requests the STB find the tariff changes unlawful, declare BNSF's refusal to accept unit train traffic unreasonable, and order reciprocal switching at affected terminals. BNSF submitted its formal response to the STB on June 25.