Union Pacific has announced that it will cease putting temporary restrictions on the shipments of specific companies ...
...while it examines the policy that was criticized by shippers and federal regulators at an hearing last week.
As part of its effort to reduce congestion along the railroad, Union Pacific has implemented more than 1,000 of these embargoes this year, which is significantly more than all the other major freight railroads combined.
The fact that these orders, which compel companies to temporarily restrict their shipments and remove some of their ...
...railcars from UP's network, have increased significantly over the previous few years caught regulators' attention.
The STB claims that UP used 140 of them in 2018.
Members of the STB and businesses that depend on railroads to deliver their raw materials and finished goods testified during the two-day hearing last week that ...
...the embargoes disrupt business operations and raise shipping costs because businesses may be forced to use more costly shipping options, like trucking.
Many companies only use one railroad, so when Union Pacific imposes restrictions, they don't have many options because their bulk products might not be suitable for delivery by trucks.
Railroads typically only employ embargoes in dire situations, such as when a flood or bridge fire threatens their ability to transport freight.
Business organizations, on the other hand, assert that they think UP's drastic workforce reductions are a major factor in the railroad's struggles to meet customer expectations. UP is based in Omaha, Nebraska.
Executives from Union Pacific argued during the hearing that these temporary restrictions are necessary to aid in improving the railroad's performance, but STB Chairman ...
...Martin Oberman claimed they haven't appeared to help Union Pacific significantly because its performance statistics are still below where they should be.