Documents Cast Doubt on BNSF Explanation of Shipping Delays

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jebr

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Railroad officials have blamed last winter's shipping delays on bad weather and unexpected demand created by a record grain harvest and surging oil shipments. The delays costs farmers and businesses hundreds of millions of dollars.


But public documents and statements from some Burlington Northern Santa Fe customers cast doubt on the company's version of events.

[...]
On paper, BNSF itself has been inconsistent. This year, a letter from the railway dated the start of problems to the quarter beginning in July, 2013. "We were not able to meet the significantly higher concentrated demand we were experiencing across several key business sectors as we moved into the third quarter of 2013," which began July 1, railway officials said.


But in August, 2013, BNSF officials told regulators railway traffic was under control and that the company was "well-positioned" for heavy shipping demand in the fall.

[...]

The situation has left BNSF customers with few answers, but lots of red ink.

Scott Dalesandro, general manager of Columbia River Logistics, which is owned by Oregon-based West Linn Paper, said the company's business dropped 12 to 15 percent because of BNSF related shipping problems, causing a substantial monetary loss. "You're probably looking at $10 million in that bracket," Dalesandro said.

Shippers that lost far more because of the rail industry shipping problems include Minnesota Power, Amtrak and United Sugars.
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