Shippers Note ‘Notoriously Difficult’ Railroads During Latest Hearing

“Excess freight-car inventory disrupts the alignment of our network resources,” says Lance Fritz, the chief executive officer of Union Pacific.
“Excess freight-car inventory disrupts the alignment of our network resources,” says Lance Fritz, the chief executive officer of Union Pacific.
(Lindsey Pound)

Shippers urged the U.S. railroad regulator to create more competition in the industry during hearings in which Union Pacific was called to explain a spike in service restrictions.

Shippers used the public forum to air grievances about an industry structure that they say gives railroads the power to boost prices and pad their profit even as service suffers.

Companies, including Cargill Inc. and Ag Processing Inc., pointed to reduced workforces as one of the main culprits for railcar curtailments.

Lance Fritz, the chief executive officer of Union Pacific, said service has suffered because the railroad didn’t have enough train crews at the beginning of the year and has hired 1,400 train and yard workers to address the problem. As service deteriorated, customers added railcars to the network to move goods. That exacerbated the congestion and forced the railroad to use embargoes to clear out railcars from switching yards and tracks, Fritz said.

“Excess freight-car inventory disrupts the alignment of our network resources,” he said. “It requires us to use more crews and more locomotives to handle the same amount of business, and it produces congestion on our lines of road and in our terminals.”

More on rail:

Rail Strike Derailed as Biden Signs Labor Bill
Rail Strike Averted Until Dec. 4, Saving U.S. $2 Billion Per Day

 

Latest News

Shofner Uses Artificial Intelligence to Ensure Boar Semen Quality
Shofner Uses Artificial Intelligence to Ensure Boar Semen Quality

How can next-generation boar sperm analysis address the current shortcomings in sperm quality assessment? Iowa State University grad student Ian Shofner is exploring how artificial intelligence can help.

State Pork News: Don't Miss These Headlines
State Pork News: Don't Miss These Headlines

Here's a round-up of news from state pork producer organizations.

Hogs and Pigs Report: How Will Increase in Pigs Saved Per Litter Impact the Pork Outlook?
Hogs and Pigs Report: How Will Increase in Pigs Saved Per Litter Impact the Pork Outlook?

Of all the numbers in the latest USDA Hogs and Pigs Report, the number that caught economists’ eye was pigs saved per litter. Here's why Steve Meyer, Ever. Ag senior economists, says this is a number to watch.

Why You Need to Understand How USDA Purchase Programs Work
Why You Need to Understand How USDA Purchase Programs Work

With pork producers facing prolonged economic headwinds, recent USDA commodity purchases of pork offer relief at pivotal times. It’s important to understand how these programs work, says NPPC president Lori Stevermer.

Get the Facts Straight on Highly Pathogenic Avian Influenza
Get the Facts Straight on Highly Pathogenic Avian Influenza

Now that the mystery illness impacting some dairy herds has been revealed as the same strain of Highly Pathogenic Avian Influenza that has been impacting the U.S. poultry flock, pork producers are asking questions.

Merck Introduces Sequivity with Microsol Diluvac Forte Adjuvant Prescription Vaccine
Merck Introduces Sequivity with Microsol Diluvac Forte Adjuvant Prescription Vaccine

Merck Animal Health announced it has received license approval from the USDA for Sequivity with Microsol Diluvac Forte adjuvant prescription vaccine for use in gilts and sows.