Regulators pleased Union Pacific is using fewer temporary shipping limits

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Union Pacific dramatically reduced its use of temporary limits on some businesses’ shipments over the past year after its customers complained.

FILE - A maintenance worker walks past the company logo on the side of a locomotive in the Union Pacific Railroad fueling yard in north Denver, Oct. 18, 2006. 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, April 17, 2024, that the railroad must go further to be in line with the other major freight railroads that rarely use such embargoes.

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.

“We definitely support strong board oversight of railroads’ use of embargoes to make sure they’re not being misused,” Sloan said. At the time the STB held a hearing on Union Pacific's embargoes in December 2022 the railroad's executives argued the limits were necessary to help improve the performance of the railroad.became CEO last summer because the railroad didn't address that in its response to Wednesday's decision., the Surface Transportation Board scolded Union Pacific for taking months to produce documents and answer questions throughout the proceeding.

 

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