December 03, 2008

5 Railway firms in US sued on anti trust grounds

According to e Cargonews Asia, the five big railroads of the US are being sued on charges of violating anti trust laws in fixing their fuel surcharge. The railroads named in the suit are Omaha based Union Pacific Railroad, Texas based BNSF Railway, Florida based CSX Transportation, Virginia based Norfolk Southern Railway and Montana based Kansas City Southern Railway.

The lawsuit accuses the five railroads of setting fuel surcharges by working through the Association of American Railroads, which publishes the indices used by railroads to calculate rates.

AAR’s board comprises the CEOs from five railroads, according to lawsuit which does not say the surcharges are illegal but accuses the railroads of illegally acting in concert. The law suit said that “The uniform pricing could not have happened by chance or coincidence.”