UP, BNSF deny Oxbow “price-fixing” charges

Oxbow Carbon & Minerals and Oxbow Mining, which ship coal and petroleum coke, have announced that they have filed a suit in U.S. District Court in the District of Columbia accusing Union Pacific and Burlington Northern Santa Fe of “monopolizing and price-fixing illegally to gouge customers with high rates.” Both railroads strongly denied he charges.

“This lawsuit will finally force Union Pacific and BNSF to account, in federal court, for their long history of breaking American antitrust laws,” said Barry Brett of Troutman Sanders LLP, co-counsel for the Oxbow companies in the lawsuit. “The complaint filed describes how the railroads have used monopolization and price-fixing illegally to drive up the price of shipping coal and many other products, and those higher prices affect every business and consumer in the country. Only the power of the federal court can compel the freight railroad industry to fundamentally reform its business practices and stop abusing customers, consumers, and the national economy.”

“Union Pacific and BNSF have systematically gouged their customers, and the result is higher prices for everybody — from companies that rely on them to ship their goods to the consumers who buy products shipped on those lines,” said Bill Koch, chairman of the board and CEO of Oxbow.

The suit also says UP and BNSF have conspired with CSX Transportation and Norfolk Southern since 2003 to use “deceptive” fuel surcharges to raise prices.

“These companies have a long history of using aggressive tactics to prevent competition and intimidate customers. We stand with our fellow Americanfarmers, miners, and shippers in fighting the railroads’ efforts to deny us competitive prices and services,” said Koch.

In a statement, UP called the complaint a “grab bag of accusations,” and said Oxbow had long warned of litigation unless the railroad came through with “exceptional commercial concessions.”

“Union Pacific values its business relationship with Oxbow and all customers,” the statement said. “However, Oxbow’s complaint contains egregious misstatements of facts, erroneous accusations, and obvious misunderstandings of federal regulation, rail networks, and markets.”

BNSF issued a statement saying it “has not colluded or conspired in violation of any law” and would address the issue further in court.