Union Pacific alleges BNSF Railway canceled reciprocal switching rates, raising grain shipment costs to $295 per car from $105.
Union Pacific filed a complaint with federal regulators alleging BNSF Railway canceled longstanding reciprocal switching rates for grain train shipments, increasing costs for UP customers. The complaint states BNSF raised rates to $295 per car from $105, a near-tripling of charges at 90 locations.
UP claims BNSF implemented these changes with little warning, targeting locations where UP recently gained business. The 472% increase at Grand Island, Neb., is among the steepest hikes cited. UP argues BNSF aims to force shippers to use its services instead of reciprocal switching access.
The complaint, spanning 129 pages, was submitted to the Surface Transportation Board on Friday. UP asserts the rate changes disrupt competitive balance in rail shipping markets.