BNSF Railway has canceled longstanding reciprocal switching charges for some unit grain prepare shipments, which has pressured Union Pacific clients to pay a better per-car merchandise prepare charge, UP mentioned in a criticism filed with federal regulators on Friday.
“This motion nearly tripled the switching charge for unit prepare grain shipments certain for Union Pacific,” UP’s criticism states. “Certainly, BNSF (NYSE: BRK-B) knowledgeable a number of clients and Union Pacific (NYSE: UNP) that it might refuse to carry out reciprocal switching for unit trains of grain delivery to or from buyer amenities through Union Pacific.”
BNSF additionally has elevated reciprocal switching charges for different commodities at just a few places, UP mentioned, together with a 472% improve for many shipments at Grand Island, Neb.
“These dramatic adjustments have a standard component – they’re occurring at places the place Union Pacific has lately gained or grown enterprise from clients positioned on BNSF’s traces to which Union Pacific has reciprocal switching entry,” UP advised the Floor Transportation Board in a 129-page criticism. “BNSF’s adjustments to longstanding charges and practices had been made with little advance warning or clarification.”
UP mentioned it believes BNSF goals to make UP service noncompetitive “and thus to drive shippers to make use of BNSF service slightly than their reciprocal switching entry to Union Pacific.”
UP mentioned the BNSF reciprocal switching charge for unit grain prepare shipments at 90 places was $105 per automobile, nicely under the $295 per automobile charge relevant to different vehicles switched at these places. BNSF has eradicated the unit grain prepare switching charge at Hastings, Havelock, and Lincoln, Neb., Island Park, Iowa, and Saginaw, Texas.
“The impact of this alteration could be to extend the switching charge for unit grain shipments delivery through Union Pacific at these places by 281% (from $105 to $295),” UP mentioned.
BNSF rejected unit prepare shipments certain for Island Park and Saginaw this month. In each situations, the trains needed to be delivered in smaller blocks for interchange with BNSF.
UP has requested the STB to find out that BNSF’s adjustments are “unreasonable and illegal.” UP additionally requested the board to prescribe reciprocal switching agreements at terminal places.
BNSF spokesman Zak Andersen mentioned UP’s criticism was with out advantage and referred to as it “a clear effort to distract consideration from years of UP competition-defeating conduct that their tried merger has put a highlight on.”
BNSF, Andersen mentioned, adjusted change guidelines that had been greater than a decade previous “and now not mirrored how operations at these amenities work in the true world.”
