FILE - A BNSF railroad train hauling carloads of coal from the Powder River Basin of Montana and Wyoming is seen east of Hardin, Mont., on July 15, 2020. The major freight railroads are hiring aggressively and asking customers to cut the number of carloads they are shipping to reduce congestion along the rail network in response to concerns from agricultural and ethanol groups that prompted regulators to schedule a hearing on the problems. OMAHA, Neb.
Union Pacific, BNSF and other major railroads say they are addressing the problems by hiring aggressively and asking customers to cut the number of carloads they are shipping to reduce congestion along the rail network. In addition to the issues for farmers and grain processors, some ethanol plants have had to cut production while waiting for empty railcars to arrive. A spokesman for the American Chemistry Council said Tuesday that more than half the companies it represents have reported railroad service problems this year.Secretary of Agriculture Tom Vilsack recently joined the NGFA and Growth Energy trade groups in making formal complaints to the Surface Transportation Board that oversees rail service.
The shipper groups say they hope the board will order the railroads to deliver better service and consider requiring them to open up their networks to allow competing railroads to bid on hauling shipments from companies that are currently served by only one railroad. Freight railroads oppose that proposal because they say it would complicate shipments and slow deliveries.
Norfolk Southern said it has adjusted staffing to meet demand wherever possible but “a tight labor market continues to contribute to service challenges, while demand on our national supply chain remains unprecedently high.” Railroads have been hiring steadily since the economy rebounded sharply from the depths of the pandemic, and they have stepped up those efforts this year to help resolve the service problems and prepare for more volume.
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