BNSF responds to tank car safety surcharge lawsuit

The American Fuel and Petrochemical Manufacturers have alleged the railways surcharge on older tank cars used to move crude oil is an unfair way to raise prices.    Burlington Northern Santa Fe Railway responded to a federal lawsuit by the American Fuel and Petrochemical Manufacturers in a recent statement. The company said it is reviewing the complaint from AFPM, but that its rate structure “appropriately supports customers who are working to move to a safer car, which is in the interest of rail shippers, BNSF employees and the communities we serve.”
   AFPM, a trade group that represents over 400 U.S. refining and petrochemical companies, is suing BNSF in objection to the $1,000 per unit surcharge the railway charges when moving crude oil in its older DOT-111 tank cars.
   In contrast, BNSF in its statement characterized the surcharges as “rate discounts for crude shippers that load their product in rail cars with improved safety characteristics.”
   “This rate structure is also consistent with BNSF’s ongoing efforts to ensure the safe transport of crude on our network, including voluntary adoption of enhanced operating practices around crude oil shipments and requesting the federal government to make newer, safer tank cars the new standard for crude-by-rail shipments, replacing the older DOT-111 and non-modified CPC-1232 cars,” the railway added.