Regulators pleased Union Pacific is using fewer temporary shipping limits
Union Pacific dramatically reduced its use of temporary limits on some businesses’ shipments over the past year after its customers complained
OMAHA, Neb. — Union Pacific dramatically reduced its use of temporary limits on some businesses' shipments over the past year after its customers complained, but regulators said Wednesday the railroad must go further to be in line with the other major freight railroads that rarely use such embargoes.
Even though Union Pacific went from imposing 1,081 embargoes in 2022 to just 181 last year, the Surface Transportation Board said that was still more than all the other major freight railroads combined. The board did note, however, that the drop “is a positive and welcome step.”
The limits have been traditionally used only in extreme circumstances when something outside a railroad's control, like a flood or bridge fire, makes it hard for them to keep up. But over the past few years, Union Pacific had gotten in the habit of imposing embargoes whenever their railroad got congested to force businesses to temporarily limit their shipments and pull some of their railcars off of UP’s network.
An embargo can force a business to consider cutting production or resorting to more expensive shipping options, like trucking, if that’s even an option. And they can make it harder for other businesses to get the key products, such as shipments of chlorine used to treat water, or grain for feeding animals.
Many businesses are served by only one railroad. 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.
Regulators had to twice order the railroad to deliver emergency shipments to livestock producer Foster Farms to
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