UP 2028 Item 1500 Biodiesel/Methyl Esters - Rate Changes Effective April 1, 2016

Announcement Number: AG2016-7
Categories: Ethanol and Biodiesel
Posted Date: February 25, 2016

Dear Union Pacific Customer,

Effective April 1, 2016, UP 2028 Item 1500 (Methyl Esters, Biodiesel, Fatty Acids) will take an average increase of 4.0%. The average adjustments for all origin points on mid-sized tank car (24.5K to 27.5L gallon) are as follows:

To East Destination States (IL) - $150 average increase
To Midwest Destination States (IA, KS, MN, MO, NE, WI) - $150 average increase
To South Destination States (AR, OK, LA, TN, TX) - $100 average increase
To Mountain Destination States (AZ, CO, ID, NV, UT) - $260 average increase
To Pacific Coast Destination States (CA, OR, WA) - $400 average increase

In order to create consistent origin and destination spreads, specific adjustments will vary. Please utilize Union Pacific’s Price and Document Inquiry System to find specific lane adjustments.

Adjustments are made on mid-sized tank car (24.5K to 27.5L gallon) rates with the following tank car size spreads remaining:

Large-sized tank Car (27.5K to 31.5K gallon) will be priced 8% above the mid-sized tank rate.
Small-sized tank cars (21.5K to 24.5K gallon) will be priced 6% below the mid-sized tank rate.

In conjunction with the increases above, rates that have not moved traffic in a year will be removed. If you require a rate to be published for a lane not currently in UP 2028 1500, please utilize Union Pacific’s Price Quote System to request a quote.
 

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