BNSF decides to discontinue differential pricing to Pacific Northwest (7/17/2002)


Today, Burlington Northern Santa Fe announced plans to discontinue its North Dakota-Montana differential agricultural pricing structure when current rates expire July 31.

The railroad lowered transportation rates to the Pacific Northwest (PNW) for wheat that otherwise would go to the domestic market to offset weak Montana wheat harvests, help maintain export markets for U.S. grain, and boost usage of its locomotives and grain cars.

"To ensure that we maintain our wheat export-market share in the Pacific Northwest, BNSF will be benchmarking its carloads against a recent four-year average to make certain that this change in pricing practice is not harming BNSF's volume to the PNW," said Matthew Rose, BNSF chairman, president and chief executive officer, in a prepared statement.

BNSF also plans Aug. 1 to reduce its demurrage charge for grain-service covered hoppers to $50 per chargeable day from a recently announced $75, and leave Saturdays as free time for 26-car and 52-car unit grain trains spotted for loading on Thursdays or Fridays, which would be in line with the railroad's April 1 single-car change.

Source: Progressive Railroading Daily News