More Volatility Expected for the Shuttle Train Secondary Market

BNSF Railway and Union Pacific Railroad have announced that charges will double for the cancellation of a shuttle train contract. For BNSF, the charge goes from $200 per car/per period to $400. In this case, a period is one-third of a month. Union Pacific has a monthly cancellation charge that will double from $65,000 to $130,000. The USDA Grain Transportation Report said the increase in fees will likely make the secondary market for shuttle trains more volatile.