More shipper accusations of railroad price fixing

Written by David C. Lester, Managing Editor
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David C. Lester

Back in December, RT&S reported that Toyota Motor Sales USA, Inc., along with other shippers, accused the major U.S. railroads of price fixing, with a focus on fuel surcharges. To read that story, please click here.

Today, the Houston Chronicle reports that Houston-based Total Petrochemicals & Refining USA is joining the list of shippers alleging price fixing. Thirty-seven companies are in the shipper group, including Phillips 66 and Motiva Enterprises, both Houston-based refiners. The railroads accused of collusion are Norfolk Southern, BNSF, CSX and Union Pacific.

The Houston Chronicle reports further that rather than actual fuel surcharges, where the extra charge would be based on the price of fuel, the extra charge was based on freight rates for hauling the commodities. According to Total, billions of dollars of revenue have been raked in by the railroads, based on these allegedly bogus charges.

For more information about this issue, please click here.

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Categories: Class 1, Freight, Railroad News, Regulatory
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