Commercial Update - A Message from Kenny Rocker, EVP, Marketing & Sales
Announcement Number: CN2021-42
Categories: General Announcements
Posted Date: June 29, 2021
To Our Customers,
As we round out June, I’m encouraged by the recent economic forecasts showing the strength in demand for goods as pandemic restrictions ease and businesses resume to full operations. Our current 7-day carloadings are up more than 6% compared to last quarter. However, this robust demand is placing challenges on some supply chains, especially in the intermodal space. We continue to work with all players in the supply chain to improve our service levels.
Here are our key operating metrics for May:
- Freight Car Velocity (daily miles per car) – Car velocity was at 215, down 1% from April.
- Freight Car Terminal Dwell (the amount of time a rail car spends in a Union Pacific rail terminal/yard) – Average dwell time was 23.0 hours, increasing 2% compared to April.
- Car Trip Plan Compliance (on-time shipment delivery) – Manifest/auto trip plan compliance decreased by one percentage point to 68% compared to April, while Intermodal trip plan compliance improved one percentage point to 73%.
In May, our operations experienced a derailment in New Mexico that impacted service in our southwest corridor from Tucson to El Paso. We also were negatively impacted by heavy rainstorms in Texas, Oklahoma, Arkansas and Kansas. Weather challenges have continued into June as excessive heat set records across a large portion of our network last week. Our Engineering team is closely watching our track conditions and inspecting our infrastructure, as needed, to make sure operations remain fluid.
Infrastructure Improvements and Your Supply Chain
If you’ve been keeping up with the news, you’ve heard about the closure of the Interstate 40 Bridge in Memphis. On May 11, the bridge was shut down to traffic due to a crack in one of the bridge’s major steel beams. Since that date, the bridge has remained closed, resulting in rerouted traffic, truck delays and disrupted supply chains.
Roadways and bridges in America are aging out of their lifespans, and that means more closures like the one in Memphis, whether planned or unplanned, are ahead. Fortunately, these closures don’t affect rail traffic, which means shipping by rail can help companies avoid the impacts of infrastructure improvements on supply chains.
As a Union Pacific customer, you’re already one step ahead of the game with rail in your transportation mix. But with more infrastructure improvements on the horizon, it’s a good time to take another look at your supply chain and see if rail can help you avoid the impacts of the impending closures. Just reach out to your Sales Representative and we’ll be happy to help.
To learn more about the Memphis Bridge closure and how to prepare for infrastructure improvements ahead, check out our recent Track Record article, “The Impact of America’s Failing Infrastructure on Supply Chains.” If you’d like to get weekly transportation and logistics tips and insights straight to your inbox, subscribe to Track Record using this link and entering your email in the green box.
Looking Forward
As we head into summer, I’m excited about the momentum our Commercial team has to build a better customer experience for you. We truly appreciate your business and will continue to work together with you and other supply chain partners to provide a safe, reliable service product to help you compete in the marketplace.
Sincerely,
Kenny Rocker
Executive Vice President, Marketing & Sales