Price Adjustments UPRR 24 and I5CR 245 - March 1, 2014

Announcement Number: IP2013-28
Categories: Lumber and Panel Products
Posted Date: November 22, 2013

With superior network performance supported by industry-leading trends in average train speed, Union Pacific is uniquely poised to serve our customers’ transportation needs.[1] Union Pacific is committed to continuing to enhance its rail network and support customer growth.
In the past five years, capital investments have totaled $15 billion and the anticipated 2013 investment is approximately $3.6 billion. Union Pacific is purchasing 100 new road locomotives and acquiring about 900 freight cars to serve as replacements for older cars and to meet expected business growth. Further, Union Pacific continues to invest in capacity and commercial facilities to support its diverse, growing business and to improve overall network fluidity. Additionally, the railroad will complete nearly 1,500 track projects across its 32,000 mile network in 2013 to improve train operating efficiency, reduce motorist wait times at crossings and enhance safety.
"We strive to create a strong value proposition with every carload we move. By investing in our network, we're providing our customers with an efficient supply chain. We will continue to provide customers with a level of service they can depend upon," said Kenny Rocker, Assistant Vice President Industrial Products Marketing at Union Pacific. 
Effective March 1, 2014, Union Pacific will be making adjustments to the following rate documents reflective of current market conditions, with all rates subject to Union Pacific's carload mileage fuel surcharge provision. We are providing our customers with advance notice so you can plan for these adjustments.
 
Price Adjustments Effective March 1, 2014
 
Lumber will be taking increases as follows:
 
UPRR 24- Selective increases for some group-to-group lanes will vary from those noted below
·         5% increase to AZ, NV, NM, and southern CA destinations (CA – LA Basin UPG, CA – San Bernardino UPG, CA – El Centro UPG, and CA – Plaster City UPG)
·         4.5% increase to AR, LA, OK, TX destinations
·         4% increase to all other destinations
 
I5CR 245- 4% increase to all destinations with some exceptions
 
Wallboard and Miscellaneous Wood Products will be taking increases as follows:
 
UPRR 24- Selective increases for some group-to-group lanes will vary from those noted below
·         5% increase for Wallboard shipments to CA, ID, MT, WY, UT, CO (items 1300-1319, 9003)
·         4% increase for all other Wallboard destinations, Wood Products shipments, and Bark shipments (items 1300-1319, 9003, 1400 series items, 9004, 1500 series items)
 
I5CR 245- 4% increase to all destinations with some exceptions
 
Panel products will be taking increases as follows:
 
UPRR 24- Selective increases for some group-to-group lanes will vary from those noted below
·         4% increase for Engineered Lumber, STCC 24391
·         4% increase Panel STCCs 24321, 24991, 24993 and  24996
 
I5CR 245- 3.5% increase to all destinations with some exceptions
 
Specific rates by commodity, lane and equipment type will be available in the Prices & Price Document Inquiry by February 2014.
 
The UPRR 24 and I5CR 245 rates are subject to selective increases and Union Pacific's carload mileage fuel surcharge provision. The new I5CR 245 and UPRR 24 rates will be published with an expiration date of August 31, 2014. We are working every day to deliver you a competitive, value-added product. Thank you for shipping with Union Pacific. 


[1]Train speed measures cargo movement between rail terminals and is compiled by the Association of American Railroads.

If you have any questions please contact your Union Pacific representative.