International Paper adds to class-action lawsuit against US railroads over fuel surcharges

Read so far

International Paper adds to class-action lawsuit against US railroads over fuel surcharges

January 17, 2020 - 17:51
Posted in:

SAN FRANCISCO, Jan. 17, 2020 (Fastmarkets RISI) -International Paper (IP) is among numerous companies bringing a class-action anti-trust lawsuit against the four biggest US railroads over fuel surcharges, according to media reports.

The case includes Class 1 rail carriers BNSF, Union Pacific, CSX and Norfolk Southern. The companies are seeking to move the litigation to one of two locations, according to a Dec. 19 court filing,Freightwavesreported. That will be heard Jan. 30.

The surcharges generated billions of dollars in additional revenue for the railroads, according to Total Petrochemicals & Refining USA, which filed its lawsuit in late December in Houston,Transport Topicsreported. Over two dozen companies had joined the suit in October, the Associated Press reported.

IP filed its lawsuit Jan. 6.

“International Paper filed an individual lawsuit against Union Pacific, BNSF, CSXT and Norfolk Southern alleging that International Paper was harmed by certain anti-competitive activities of the defendants,” an IP spokesman told Fastmarkets RISI in an email. “We expect our regular, day-to-day business relationships with the railroads, and our ability to service our customers, to continue without impact.”

“We are not able to offer any additional information while this litigation is pending,” he added.

Attorneys of one complainant said the surcharge scheme began 16 years earlier amid declining rail freight rates, AP said.