ADM sues five railroads over fuel surcharge
March 27, 2008
by FoodBusinessNews.net Staff
MINNEAPOLIS — Archer Daniels Midland Co. filed a lawsuit March 25 in federal court in Minneapolis against five U.S. railroads for their alleged role in violating antitrust laws in fixing fuel surcharges.
While the lawsuit does not claim the surcharges are illegal, it does accuse the railroads of illegally acting in concert to set them. ADM said it has paid more than $250 million in fuel surcharges since 2003.
The five railroads named in the lawsuit are: Union Pacific Railroad Co., Omaha; BNSF Railway Co., Fort Worth, Texas; CSX Transportation Inc., Jacksonville, Fla.; Norfolk Southern Railway Co., Norfolk, Va.; and Kansas City Southern Railway Co., Kansas City.
The lawsuit claims BNSF Railway and Union Pacific locked their surcharges together in their main territory in the Western United States, while CSX, Norfolk Southern and Kansas City Southern did the same thing in the East.