(The Associated Press distributed the following article on January 10.)
BILLINGS, Mont. — Burlington Northern Santa Fe Railway will exempt certain contracts from the shipping rate increases it announced recently, the railroad’s president said.
In a letter Thursday to Gov. Judy Martz, BNSF’s Matthew K. Rose said “covered hopper” shipments ordered with a want date before Dec. 16 but that still have not been handled by the railroad are exempt from the increase as long as shipments occur this year.
Gus Melonas, a spokesman for BNSF, said Friday that he did not know how many shipments would be affected.
Martz said the move would help those elevator operators who have had to wait for cars because of an extended backlog.
BNSF has had shipment delays because of the huge 2003 grain harvest, said Rose, who is also chairman and chief executive officer.
He said officials believe that they “will essentially be caught up” by the end of March.
Last month, the state’s primary rail shipper announced a rate reduction that it had in place would expire Dec. 31, in part because of increased grain traffic demand.
Melonas said at the time that the rates did not reflect market conditions.
State agriculture officials have said the move would raise shipping costs an average 6 cents a bushel in Montana.
Martz said officials are continuing to ask the railroad to reconsider the increase.
Ralph Peck, director of the state Department of Agriculture, on Friday also said producers continue to pay a 2.5 percent fuel surcharge for grain shipments.
“The change BNSF announced this week will help those elevator operators who quoted prices based on expected shipping costs,” he said.
“All of these added costs eventually filter down and are paid by producers, however.”