THE Union Pacific Railroad (UP) will increase rates across many lanes in the western US and Mexico, including an increase in surcharges out of California that will raise rates for low-volume shippers to US$3,000 to $5,000 per container on loads that exceed contracted volume.
The record-breaking surcharge for the second year in a row will go into effect August 8.
The western Class I railway will also increase spot rates on more than 130 lanes in Mexico, Texas, and Washington state. The rate increases vary from $525 to $1,100 per container, depending on the lane. It doesn't impact contract intermodal shippers in any way.
'Additionally, street cycle times continue to be elevated by 20 per cent, which has impacted our ability to support all the container demand across our network,' said UP.
'To drive more capacity towards committed baseload volumes, we will be increasing some of the surcharges for customers shipping surge volume on standard and aggregate [contracts] in the Los Angeles and Northern California markets,' said the railway.
The announcements are the fourth time up has adjusted prices in 2021 after doing so in March, April, and June.
The surcharge is expected to have a greater impact this year than in 2020 because UP raised the minimum threshold to avoid the low-volume category this spring.
UP also will levy new surcharge on excess shipments out of Seattle totalling $1,000 per container for aggregate shippers and $500 for BCO-specific contract shippers.
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The record-breaking surcharge for the second year in a row will go into effect August 8.
The western Class I railway will also increase spot rates on more than 130 lanes in Mexico, Texas, and Washington state. The rate increases vary from $525 to $1,100 per container, depending on the lane. It doesn't impact contract intermodal shippers in any way.
'Additionally, street cycle times continue to be elevated by 20 per cent, which has impacted our ability to support all the container demand across our network,' said UP.
'To drive more capacity towards committed baseload volumes, we will be increasing some of the surcharges for customers shipping surge volume on standard and aggregate [contracts] in the Los Angeles and Northern California markets,' said the railway.
The announcements are the fourth time up has adjusted prices in 2021 after doing so in March, April, and June.
The surcharge is expected to have a greater impact this year than in 2020 because UP raised the minimum threshold to avoid the low-volume category this spring.
UP also will levy new surcharge on excess shipments out of Seattle totalling $1,000 per container for aggregate shippers and $500 for BCO-specific contract shippers.
SeaNews Turkey
