(The Associated Press circulated the following article on April 14.)
HELENA, Mont. — BNSF Railway will temporarily lower its shipping rates in four states, including Montana, for wheat shipped to West Coast markets, the railroad announced.
In a written statement late Wednesday, BNSF Railway, formerly known as Burlington Northern-Santa Fe Railway, said its decision to lower rates was intended to reflect the “disproportional difference” between the current revenue-based fuel surcharge and the mileage-based fuel surcharge the company intends to switch to on Jan. 1.
The reduction, which goes into effect immediately, affects wheat shipments from Montana, North Dakota, South Dakota and Minneapolis, the railroad said.
“The purpose of this temporary rate reduction is to make total transportation costs for the affected wheat shippers roughly the same as when the mileage-based fuel surcharge implementation begins,” the company said.
BNSF said wheat transportation rates should decline by $115 to $150 per car in the affected states.