Federal regulators and shippers are questioning Union Pacific’s decision to temporarily limit some businesses’ shipments as part of its effort to clear up congestion across the railroad.
A Union Pacific train engine sits in a rail yard on Wednesday, Sept. 14, 2022, in Commerce, Calif. Federal regulators and shippers questioned Union Pacific’s decision to temporarily limit shipments from certain businesses more than 1,000 times this year as part of its effort to clear up congestion across the railroad. The head of the U.S. Surface Transportation Board Martin Oberman said Wednesday, Dec.
For much of this year, Union Pacific and the other major freight railroads have struggled to deliver products on time and handle all the shipments companies want to move because they were short on crews coming out of the pandemic. The railroads have been improving throughout the year as they hired more workers, but regulators say they’re still lagging behind where they should be. Union Pacific is using significantly more embargoes than any other railroad.
Cargill executive Brock Lautenschlager said Union Pacific’s actions make it hard to plan. Last month, the railroad told Cargill it needed to pull 130 railcars it owns from the network within a week or face shipment limits at five of its plants. The agribusiness giant complied because it worried that an embargo could force it to shut down a plant.
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Union Pacific railroad shipping limits generate complaintsFederal regulators and shippers are questioning Union Pacific’s decision to temporarily limit some businesses’ shipments as part of its effort to clear up congestion across the railroad.
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