ADM sues five major railroads over price fixing

By | May 09, 2008
Archer Daniels Midland Co. has filed a federal antitrust lawsuit in Minneapolis, alleging that five major railroads conspired to fix fuel surcharges starting in 2003. The suit alleges that chief executive officers of Union Pacific Railroad Co., BNSF Railway Co., CSX Transportation, Kansas City Southern Railway Co. and Norfolk Southern Railway Co. conspired through their board members of the Association of American Railroads to select identical factors that moved in lockstep to trigger the fuel surcharges. Surcharges are levied to help railroads recover unanticipated costs when fuel prices rise, but ADM alleges the railroads used the surcharges to boost their profits. The association, which isn't a party to the suit, and the five rail carriers deny that their actions were improper or illegal.