Upcoming Accessorial Changes

UP: November 5, 2018

Announcement Number: CN2018-42
Categories: General Announcements
Posted Date: November 5, 2018

To Our Customers,
We are modifying accessorial tariff, UP 6004, effective January 1, 2019. The changes are consistent with our Unified Plan 2020 methodology focusing on reliability and efficiency — for both Union Pacific and our customers. The following sections illustrate the new accessorial rates.
Unit Train Tariff – Union Pacific is standardizing and simplifying our Unit Train Tariff.
Customer…

forecasting allows Union Pacific to efficiently plan and allocate resources for unit train operations. We are making the changes below to our Unit Train Tariff:

Unit Train Forecasting

  • Customers to provide 30-day rolling forecast
  • Customers to provide 72-hour pre-release notification
  • If customer changes destination or release date under 48 hours of original release date, then customer will be assessed $2,000
  • If customer cancels a unit train under 48 hours of original release date, then customer will be assessed $10,000
Locomotives assets, crews, and network capacity are all critical operational resources. Efficient use of these resources allows safe, reliable, and efficient movement of freight for our customers. 

Locomotive Asset Utilization

  • Union Pacific provides 24 hours of free time for customer loading or unloading. If customer exceeds free time, customer will be assessed $200 fee per locomotive, per hour after free time
  • Free time determined by train AP (Actual Placed) to next train release
Deadhead Delivery and Pick-up
  • “Deadhead” is defined as locomotive movement to/from a facility not attached to an existing train
  • If customer requests locomotive(s) to be moved inbound/outbound, customer will be assessed $3,200 per move
  • The number of locomotives does not impact total fee 
Lay down 
  • “Lay down” is defined as a train movement being stopped en route
  • If customer causes a train to lay down – customer will be assessed $2,000 for the first hour and $500 fee for each additional hour
Additional tariff changes:
Private Empty Car Storage (PECS)
Assets stored in rail yards consume capacity and congest terminals, impacting our ability to provide timely first and last mile service to customers. As we focus on reliable transit, we will be making the changes below to our PECS tariff item:
  • Net chargeable storage day change from $100 to $140
Demurrage (Chargeable Events)
To encourage the efficient use and release of rail cars promptly for use by all customers, we will be making the changes below to our Chargeable Events tariff item:
  • One “arrival credit” will be issued for each loaded rail car arriving in the serving area within the past 24 hours
Union Pacific is committed to providing excellent service to customers. We have identified the following circumstances that impact our ability to provide reliable train service. By working mutually together, we can provide consistent first mile/last mile service.
Prepared for Service
  • If a car is unable to be pulled or spotted from industry due to customer’s actions, customer will be assessed $400 per car, per occurrence
  • This includes, but not limited to:
  1. Cars not completely loaded or unloaded, but released for movement
  2. Cars released, but not placed at the agreed upon location for access by Union Pacific
  3. Cars released and placed at a location that is inaccessible by Union Pacific
  4. Cars unable to be spotted to track due to debris, safety flags, locked gates, or other blockage
  5. Customer refuses delivery of cars at industry

We encourage all of our customers to review our “Be Prepared for Service” reference material that outlines the importance of making cars available.

These changes are designed to improve utilization of rail car assets and increase efficiency in your supply chain. If you have any questions regarding the upcoming tariff changes, please contact your sales representative.