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Posted by DLM
on 11/5/2009, 7:44 am, in reply to "Already Posted Below"
75.5.236.76
Well sort of.
Pacer had a very old contract with the UP that gave them cheap rates and fuel surcharges capped at 6%. Pacer was making millions on it and the UP was losing money. The contract expired 10/2011 and the UP has been telling them to take a hike. This contract is the only reason Pacer makes any money. Without it, they are nothing. Pacer along the way refused to make any changes to the contract regarding fuel surcharges.
So, the UP is paying $30M to Pacer to end their old contract. The UP basicly takes pocession of all Pacer containers. All lawsuits are canceled. The Pacer containers will be blended into the EMP fleet on the UP. All pricing on Pacer Stacktrain containers routed on the UP is being cancel and new UP diriect pricing is being put in Pacer.
Pacer containers will stay on the CN and CSX for now. All BNSF routings are canceled now.
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