AMERICA's union Pacific Railroad (UP) says it will stop imposing limits on shipments while it reviews the policy that federal regulators and shippers criticised at a recent hearing, reports the Associated Press.
The Class I railway has put more than 1,000 of these embargoes in place this year - significantly more than all the other major freight railways combined - as part of its effort to clear up congestion, said CEO Lance Fritz in a letter to the US Surface Transportation (STB) board.
These orders that force businesses to temporarily limit their shipments and pull some of their railcars off of UP's network caught regulators eye because they are up significantly over the past few years. In 2018, UP used 140 of them, according to the STB.
Members of the STB and companies that rely on railroads to deliver their raw materials and finished products said at last week's two-day hearing that the embargoes disrupt business operations and drive up shipping costs because companies may have to resort to more expensive shipping options, like trucking.
Many businesses are served by only one railway. Their bulk products may not be well suited to being delivered by trucks, so they don't have many options when Union Pacific imposes limits.
Railways use embargoes in extreme conditions when something outside their control, like a flood or bridge fire, hurts their ability to haul freight. Business groups, however, say they believe deep cuts in UP's workforce are a major reason the Omaha-based railway is having so much trouble meeting customer expectations.
Union Pacific executives argued at the hearing that these temporary limits are needed to help improve the performance of the railway, but STB chairman Martin Oberman said they don't seem to help the Union Pacific as its performance statistics still lag behind where they should be.
SeaNews Turkey
The Class I railway has put more than 1,000 of these embargoes in place this year - significantly more than all the other major freight railways combined - as part of its effort to clear up congestion, said CEO Lance Fritz in a letter to the US Surface Transportation (STB) board.
These orders that force businesses to temporarily limit their shipments and pull some of their railcars off of UP's network caught regulators eye because they are up significantly over the past few years. In 2018, UP used 140 of them, according to the STB.
Members of the STB and companies that rely on railroads to deliver their raw materials and finished products said at last week's two-day hearing that the embargoes disrupt business operations and drive up shipping costs because companies may have to resort to more expensive shipping options, like trucking.
Many businesses are served by only one railway. Their bulk products may not be well suited to being delivered by trucks, so they don't have many options when Union Pacific imposes limits.
Railways use embargoes in extreme conditions when something outside their control, like a flood or bridge fire, hurts their ability to haul freight. Business groups, however, say they believe deep cuts in UP's workforce are a major reason the Omaha-based railway is having so much trouble meeting customer expectations.
Union Pacific executives argued at the hearing that these temporary limits are needed to help improve the performance of the railway, but STB chairman Martin Oberman said they don't seem to help the Union Pacific as its performance statistics still lag behind where they should be.
SeaNews Turkey