Japanese shipping company ONE sues Union Pacific for cargo theft

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Japanese container shipping company Ocean Network Express is suing Union Pacific for theft of cargo from UP’s intermodal trains.

According to ONE’s legal filing with the U.S. District Court in Nebraska, UP (NYSE: UNP) had been contracted to deliver solar panels from China to Salt Lake City via the Port of Los Angeles, but when the panels arrived in Salt Lake City, the container door was missing and the panels were stolen.

ONE estimates that the claim for failure to deliver the solar panels is worth just under $15,800. If ONE is held liable for the claim, UP should also be held liable for failing to deliver the shipment, ONE’s lawyers argued.

“ONE is entitled to indemnification against Union Pacific for all amounts that ONE may be required to pay on the underlying claim, whether by judgment or by settlement, including attorneys’ fees and expenses,” said ONE in its June 3 filing.

UP did not return a request for comment. But last fall and through January, UP saw a spike in thefts on railroad property in Los Angeles.

The robberies involved trespassers climbing onto trains and breaking into cargo containers, and UP requested local and state assistance to deal with the outbreak in addition to deploying its own police force. UP was also lobbying local law enforcement for tougher penalties.

Correction: An earlier version of this article stated that the theft took place in Southern California. In fact, we don’t know where it happened.

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