Grain Car Allocation System - Car Auctions and General Distribution

Announcement Number: AG2013-70
Categories: Domestic Corn Feed Grains and Soybeans,Export Corn Feed Grains and Soybeans,Wheat and Food Grains
Posted Date: December 19, 2013

To All Grain Customers:

Union Pacific will not be holding a grain car auction during the weeks of Christmas or New Year. We will resume our normal auction schedule on Monday January 7th and we will offer cars for February, March and April.

Effective immediately, the Union Pacific's General Distribution status will be changed to "MATRIX" until further notice.

Below is a brief description of General Distribution and each status. See UP 4051 or UP 4052 Item 70 for a complete description of the GCAS rules that govern the ordering of covered hoppers for loading of whole grains.

The General Distribution car order system is used by Union Pacific to supply whole grain covered hoppers in a systematic manner. Car orders may be placed on the Union Pacific web site. Customers without access to the site may place orders with UP Customer Service at (800) 272-8777. General Distribution car orders are for immediate delivery, no future want dates will be accepted. Union Pacific offers no guarantee of delivery dates. If customers require guaranteed delivery dates, Car Supply Vouchers or Guaranteed Freight should be used. General Distribution orders that are placed and later canceled will be subject to a $70 per car penalty. Cancellation penalties will be waived if order is not filled within 30 days. General Distribution car orders cannot be transferred to another location.

The General Distribution status when demand for cars is current or when cars are in storage. Customers can order cars at any time during this status. Each location may have one General Distribution order at a time for up to the number of cars they can spot. When the cars for the first order are applied or placed that shipping location may place another General Distribution order.

The General Distribution status when supply is tight and Union Pacific is not able to fill all demand. Customers are not free to order GD cars under this status; they will be offered cars, as they are available. General Distribution uses a matrix to offer cars on a rotation or "turn" basis. The matrix is a listing of all shipping locations that are registered in the Grain Car Allocation System. New customers that register will be given the next number on the matrix. The matrix is separated into 3 large geographic regions. All shipping locations were assigned a random sequence number when the regions were created. Union Pacific will evaluate car supply and fax an offer of cars to the next shipping location(s) on the matrix. The offer is approximately 7 to 14 day advance notice of car availability. Each location will have two days to order all or a portion of the cars their facility is registered to receive. Customer has no obligation to order cars but will not have another opportunity until the next rotation of the matrix or until General Distribution is in "Open" status.

If you have any questions please contact your Union Pacific representative Darren Wisniski (402) 544-4190 or Dave Muck (402) 544-6264.