Covered Hopper Distribution Programs for Grain and Food Products - Updated Tariff Effective October 1, 2020

Announcement Number: AG2020-43
Categories: All Agricultural Products
Posted Date: September 1, 2020

To Our Customers,

As announced in April, Union Pacific will release enhancements to our Covered Hopper Distribution Programs for grain and food product shipments. The improvements will create more inclusion and transparency for customers, while preserving program objectives of maximizing carloads and efficiencies for our customers and Union Pacific. This notification is the final 30-day notice before these enhancements become effective October 1, 2020.

The updated programs provide three options to secure equipment:

  • Shuttles (for high-volume committed business)
  • Guaranteed Freight (for long-term committed business)
  • Vouchers (for single use shipments)

With the implementation of this program, General Distribution for commodities included in the program will be discontinued. Customers will no longer be able to place General Distribution orders after October 1, 2020.

Additional resources are available on our website to assist you in the transition to these new programs, including a Secondary Freight Overview and Car Oder/Billing Instructions. 

If you have questions, please contact your Union Pacific sales representative or our Equipment Distribution Team. You may also visit the Covered Hopper Distribution Programs web page.

We are excited to begin offering these distribution program enhancements to improve your experience as a Union Pacific customer and to grow with you as we continue to move forward. 

As always, thank you for your business!