Covered Hopper Distribution Programs for Grain & Food Product Shipments

Announcement Number: AG2020-15
Categories: All Agricultural Products
Posted Date: April 22, 2020

To Our Customers,

Union Pacific will release enhancements to the systems through which we distribute Union Pacific standard covered hoppers for agricultural-related shipments. The systems included are the Grain Car Allocation System (GCAS), which encompasses the Guaranteed Freight and Voucher programs and the Processor Car Allocation System (PCAS). The updates will be effective October 1, 2020 and will create more inclusion and transparency for customers, while preserving program objectives of maximizing carloads and efficiencies for our customers and Union Pacific.

Summary of Changes

  • No changes are planned for the shuttle program at this time.

Main items changing include the following:

  • Current Grain Car Allocation (GCAS), Guaranteed Freight and Voucher programs will be made available to all Grain and Food product commodities utilizing standard covered hoppers. The primary expanded commodities are soybean meal, rough rice and barley. This is in addition to the commodities already using these programs of corn, soybeans, wheat and milo.
  • The PCAS program will be rolled into the GCAS program.
  • Guaranteed Freight will be reduced from three years to one year to allow for greater flexibility and encourage participation.
  • The opening of the Voucher program to shippers of all the commodities listed above creates an additional option outside of the committed program.
  • Liquidated damages for guaranteed equipment will be streamlined for consistency.
  • Voucher regions will be eliminated.

Next Steps & Additional Resources
To aid in this transition and encourage usage of the new programs, Union Pacific will be providing resources in the upcoming months, including:

  • Website information that encompasses details of the new programs, learn more now.
  • Updated, clear tariff language (available by July 31, 2020)
  • Instructions for Guaranteed Freight sign-ups (to be completed by August 31, 2020)
  • Overview of how the Voucher auction works and how to register (available by August 31, 2020)

Union Pacific appreciates your business and is excited to utilize the updated Covered Hopper Distribution Programs to grow with you going forward.

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