Union Pacific is pausing use of embargoes on the freight rail network, a method of easing congestion which has attracted regulatory and labor union scrutiny.
Union Pacific is pausing its use of embargoes, a method to control freight rail traffic which has been scrutinized by federal regulators and rail labor unions.
In a letter addressed to STB chairman Martin Oberman and sent to the STB on Friday by Fritz, the Union Pacific CEO stated, "We are taking a hard look at our use of congestion-related embargoes. To facilitate that hard look, we are immediately pausing any additional embargoes under the pipeline inventory management program we began in November."
The railroad has contended that due to its geographic span, number of yards, customer facilities, and commodity mix that embargoes are one of the few tools it has to manage and meter customer-controlled railcar inventory levels and alleviate network congestion. It has also referred to embargoes as a tool of "last resort."
"Instead, they are lengthening trains to sizes that exceed infrastructure capacity which is adding to the congestion, instead of adding workers to improve the service," said Richard Edelman, one of the attorneys representing the rail unions.
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