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Backseat Driver

(4,635 posts)
Mon Apr 18, 2022, 03:17 PM Apr 2022

What does one make of this?


https://www.cfindustries.com/newsroom/2022/union-pacific-shipping-restrictions

CF Industries Holdings, Inc. (NYSE: CF), a leading global manufacturer of hydrogen and nitrogen products, today informed customers it serves by Union Pacific rail lines that railroad-mandated shipping reductions would result in nitrogen fertilizer shipment delays during the spring application season and that it would be unable to accept new rail sales involving Union Pacific for the foreseeable future. The Company understands that it is one of only 30 companies to face these restrictions.

CF Industries ships to customers via Union Pacific rail lines primarily from its Donaldsonville Complex in Louisiana and its Port Neal Complex in Iowa. The rail lines serve key agricultural areas such as Iowa, Illinois, Kansas, Nebraska, Texas and California. Products that will be affected include nitrogen fertilizers such as urea and urea ammonium nitrate (UAN) as well as diesel exhaust fluid (DEF), an emissions control product required for diesel trucks. CF Industries is the largest producer of urea, UAN and DEF in North America, and its Donaldsonville Complex is the largest single production facility for the products in North America.

“The timing of this action by Union Pacific could not come at a worse time for farmers,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “Not only will fertilizer be delayed by these shipping restrictions, but additional fertilizer needed to complete spring applications may be unable to reach farmers at all. By placing this arbitrary restriction on just a handful of shippers, Union Pacific is jeopardizing farmers’ harvests and increasing the cost of food for consumers.”

On Friday, April 8, 2022, Union Pacific informed CF Industries without advance notice that it was mandating certain shippers to reduce the volume of private cars on its railroad effective immediately. The Company was told to reduce its shipments by nearly 20%. CF Industries believes it will still be able to fulfill delivery of product already contracted for rail shipment to Union Pacific destinations, albeit with likely delays. However, because Union Pacific has told the Company that noncompliance will result in the embargo of its facilities by the railroad, CF Industries may not have available shipping capacity to take new rail orders involving Union Pacific rail lines to meet late season demand for fertilizer. [snip]
(My emphatic bolding).

Too few containers; too many carloads? Who are the other companies so notified??? Is it only a UP problem because THEY are not able to rapidly adjust, i.e. hiring and/or #of locomotives? I read that rails cut employees too deeply during the pandemic, but.....I also note that UP has signed on to a climate-change initiative to reduce emissions by 2030. Turn off your cars at crossings of long trains, folks! Seems only regular non-corporate consumers are supposed to be able to "turn on a dime" financially when prices in grocery and at the pumps cause "Mayhem."

Love Pete and Chasten's baby pics, but we're (this administration) is on this apparently new supply-chain problem, ASAP. It's been noted on Tucker's Fux Noise and RW Mike Adams and by a very nice lady "celebrity" turned family farmer - A huge discussion ensued at my house this AM about this article. What does DU say? Does our Admin need to have a little talk with some of these "deep pocket" corporations to assure we can meet trade and farmers' needs now and/or in the future. We have a response, right?
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What does one make of this? (Original Post) Backseat Driver Apr 2022 OP
From... PoliticAverse Apr 2022 #1
It means prepare for higher food prices and possible shortages DetroitLegalBeagle Apr 2022 #2

PoliticAverse

(26,366 posts)
1. From...
Mon Apr 18, 2022, 03:26 PM
Apr 2022
https://www.trains.com/trn/news-reviews/news-wire/shippers-complain-about-union-pacifics-plans-to-meter-traffic/

UP sent an email to customers on Saturday morning outlining the railroad’s goal of removing 15,000 private cars from current inventory. UP is pulling nearly 3% of railroad-owned cars from the system.

The number of cars on the railroad has grown over the past 60 days and in the week ending April 8 topped 300,000 for the first time since 2018, when UP was in the midst of an operational funk that lasted more than a year. The railroad is short of crew and power, and says it’s hiring aggressively while pulling locomotives out of storage.

When a railroad’s average train speed drops and terminal dwell rises, transit times increase and service becomes more erratic. Shippers typically add cars to their fleets as rail service slows, which tends to exacerbate congestion and delays.

...

The big four U.S. railroads – BNSF Railway, CSX Transportation, Norfolk Southern, and UP – are experiencing service problems to various degrees, most of which are the result of shortages of crews and locomotives.

DetroitLegalBeagle

(2,177 posts)
2. It means prepare for higher food prices and possible shortages
Mon Apr 18, 2022, 04:29 PM
Apr 2022

Fertilizer represents one of the larger expenses for farmers. Higher cost will get passed on to consumers. And less fertilizer means lower yields, which can also affect prices if there is a big enough shortage.

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