STREAMLINE Announcement of Constrained Markets in California

Announcement Number: IM2012-528
Categories: Domestic Price,Streamline Door to Door,Domestic Miscellaneous
Posted Date: September 20, 2012

  

 

STREAMLINE Announcement of Constrained Markets in California for Mutual Commitment Program Customers

Dear Streamline Customer,

Streamline is experiencing a significant increase in demand for domestic container capacity in both Northern and Southern California. It is anticipated that demand will increase further in the next two weeks. Action is being taken to reposition additional containers and increase train capacity to meet the needs of committed shippers. Therefore, in accordance with terms of the Mutual Commitment Program (MCP), UP is declaring the Northern California and Southern California markets as constrained.

Beginning the week of Sunday, September 23

Within the next day or two customers will receive an updated report showing the weekly Base Load Volume for each MCP Agreement in the Northern and Southern California markets. The Base Load Volume calculation will be based on the terms of each MCP Agreement, with the final week ending Saturday September 15, 2012.

Streamline will be reducing Volume Surcharges by $100 from previously-communicated levels for the duration of peak season. Specific Volume Surcharge amounts will be communicated to customers individually beginning tomorrow.

Customers are reminded to provide current weekly volume forecasts for shippers that are expecting volumes surges in the upcoming weeks.

If you have any questions, please don’t hesitate to contact your Streamline Sales Representative. We thank you for your business and look forward to a successful peak shipping season.

Sincerely,

Streamline

rd, Streamline will assess surcharges for weekly shipment volume above the Surge Volume Allowance calculated for each shipper. Collection of these charges is necessary to offset part of the additional cost of repositioning extra equipment into California. Streamline anticipates that demand will moderate early in October, causing California markets to no longer be constrained.

 

 

Attachment

September 19, 2012

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