Union Pacific Challenges BNSF Switching Tariff Changes

To Our Bulk and Industrial Customers,

Today, Union Pacific filed a Complaint with the Surface Transportation Board (STB) challenging BNSF's changes to its reciprocal switching tariff (Switching Book 8005-E), which took effect May 1. With no advance warning or explanation, BNSF made significant changes to rates and services that have been working for decades. 

What BNSF did:

• Eliminated the longstanding $105 per-car unit-train grain rate at specific locations served via Union Pacific reciprocal switching; a 281% increase to the $295 merchandise rate.
• Refused to switch unit trains of grain to/or from these facilities for movement on Union Pacific, despite no such exclusion in BNSF's own published tariff, while continuing to accept the same unit trains on BNSF.
• Increased the switching rate at Grand Island, NE by 472% (from $295 to $1,395 per car).

BNSF has offered no cost, network, or operations-based justification for these changes. The targeted locations are where customers have recently moved business to Union Pacific or increased their volumes with Union Pacific.   

What we are asking the STB to do:

1. Strike down the rate increases.
2. Find BNSF's refusal to switch unit trains unlawful.
3. Prescribe reciprocal switching at the affected terminal locations.
4. Award damages and reparations to Union Pacific and affected shippers and receivers.

BNSF’s approach is in stark contrast and direct conflict of Union Pacific’s goals to enhance competition, expand access, increase service speed and reliability, and improve the overall customer experience. A level playing field is essential for customers to compete and win.   

We welcome competition with BNSF on rates and service. What we cannot accept is a targeted effort to foreclose the competitive options customers have built their supply chains and facilities around. Customers have supported our filing, we referenced a few, but others are concerned about further retaliation. Restoring the pre‑April tariff is the right outcome, for customers, for competition, and for the industry. 

Thank you for your partnership. We remain committed to supporting customers as this process moves forward and to preserving the competitive options they rely on. If you have questions or would like to discuss your specific situation, your Union Pacific sales representative is available to help. 

Sincerely,

Kenny Rocker  
Executive Vice President, Marketing & Sales