KANSAS CITY — Nestle SA has joined a bevy of food manufacturers such as Campbell Soup Co. and Conagra Brands Inc. and numerous other companies claiming four Class 1 railroads conspired to set fuel surcharges to the detriment of shippers, according to a recent court filing.

Nestle Purina Petcare Co. filed the complaint June 2 in the US District Court for the District of Columbia, alleging the railroads “engaged in an extraordinary series of meetings, phone calls and email communications through which they embarked on a conspiracy,” according to a Bloomberg Law report. The surcharges were passed on “under the guise of a fuel cost recovery program” for industrial companies that bought the railroads’ transportation services, the complaint said. Prior to the alleged conspiracy, the railroads competed on rates tied to fuel recovery costs, with the competition benefiting customers, according to Nestle.

In addition to food,…

Read more…

Share.

Comments are closed.