rail

Union Pacific Files Complaint Against BNSF Over Switching Rate Increases

Union Pacific filed a complaint with the Surface Transportation Board on May 15, challenging BNSF's reciprocal switching tariff modifications. The changes took effect May 1. UP contends they constitute unlawful and unreasonable practices that eliminate longstanding switching rates for unit train grain shipments originating on BNSF lines. The tariff revisions nearly tripled switching costs for grain traffic routing to UP and forced shippers to pay merchandise rates instead. BNSF also declined to perform reciprocal switching for unit trains in grain service. Additionally, UP cited dramatic rate increases at targeted locations, noting the Grand Island, Nebraska rate surged 472 percent from $295 to $1,395 for most commodities. UP argues the modifications coincide with locations where it recently captured business from BNSF-served customers with reciprocal access. The carrier requests the board find the tariff changes unlawful and impose remedies including switching orders.