Covered Hopper Distribution Programs for Grain & Food Product Shipments

Summary of Programs

 For complete rules, please refer to UP 1000 Attachment B.

Covered Hopper Distribution Program High Volume

High-Volume Committed

Shuttles

  • Secure dedicated unit trains and earn incentives for performance in return for a commitment to provide ongoing unit train volume to/from approved locations
  • Offered at weekly auctions generally for 12 month terms
 Covered Hopper Distribution Program Long Term

Long-Term Committed

Guaranteed Freight

  • Secure committed, guaranteed equipment in return for a monthly volume commitment
  • Offered once per year for 1 year term
 Covered Hopper Distribution Program Single Use

Single Use

Vouchers

  • Secure equipment for individual, one-time moves without the requirement of an ongoing commitment
  • Offered at weekly auctions from 6 months to 3 weeks before indicated delivery period
  • Market-based allocation to highest bidder(s)
Target User

High-volume grain shipper with year-round unit-train quantities.
Target User

Shippers willing to commit to consistent volume throughout the year.
Target User

Shippers with spot, inconsistent or other moves that aren’t covered through other programs.
Service Type(s)

Unit trains
Service Type(s)

Primarily manifest (able to ship unit train for $100/car charge)
Service Type(s)

Manifest and unit
Term

Primarily one-year commitment (occasional six-month options)
Term

One-year commitment
Term

Single use
How to Secure

Through renewals of existing shuttles, or through auctions that occur every week.
How to Secure

Offered once during the year; term begins October 1.
How to Secure

Through auctions that occur every week. Must place bid (minimum bid = $10) and cars are offered starting six months before delivery period and continue until either all cars are awarded or three weeks before delivery period, whichever comes first.
Description

Union Pacific provides a dedicated train set that the customer is responsible to consistently direct between load/unload locations, continuously utilizing the train allocated to them.
Description

Customer commits to ship specific volume each month during the year, Union Pacific guarantees to provide equipment to support shipments.
Description

Customer able to secure a single-use guaranteed car delivery without a long-term commitment.
Delivery Period

Mostly 2.5+ trips per month
Delivery Period

Delivery period = half of month*

Monthly committed volume should be split roughly evenly between the halves
Delivery Period

Delivery period = half of month*

Cars are offered for delivery within those half periods
Customer Commitments
  • Regularly load and turn equipment
  • Ship only to/from shuttle-approved locations
Customer Commitments
  • Stable volume commitment each month for one year
  • Ship roughly equal volumes in the first and last half of each month
  • Place car order around 10 days before delivery half using guaranteed freight ID #
  • Pay $250 if volume commitment is not met
Customer Commitments
  • Provide single load per voucher acquired in the delivery period secured
  • Place car order around 10 days before delivery period using voucher ID # secured
  • Pay bid price + $250 deposit when bid is won. Deposit is used to offset freight bill when shipment is billed.
  • Forfeit deposit if car order is not made for the voucher secured
UP Commitments
  • Dedicated equipment
  • Pay incentives for performance (e.g. load/unload within 15 hours)
  • Transit time that allows customer at least 2.5 turns/month of the equipment
  • Unit train desk that helps manage/coordinate transit
UP Commitments
  • Guaranteed equipment supply
  • Provide equipment in the half of month customer requests
  • Pay $250 if do not supply equipment in half of month requested AND customer cancels car request
UP Commitments
  • Provide car in the half designated
  • Manage voucher offer system
  • Pay $250 if do not supply equipment in half of month requested AND customer cancels car request

* Delivery Periods for Guaranteed Freight & Vouchers

  • 1st half = 1st - 15th of each month
  • 2nd half = 16th - 31st of each month