Covered Hopper Distribution Programs for Grain and Food Products - Updated Tariff and Preparing to Ship

Announcement Number: AG2020-36
Categories: All Agricultural Products
Posted Date: July 22, 2020

To Our Customers,
 
As announced in April, Union Pacific will be releasing 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.
 
As our October 1 launch date draws near, we want to keep you informed of our progress and provide you with the steps you need to prepare. Please refer to the following information for more details:
 
Updated Tariff Now Available
The tariff for the updated programs is now available on the Union Pacific website. 
 
Preparing to Ship with Our Updated Programs
Long-Term Committed Program, Guaranteed Freight (GF)
This program offers secure, committed and guaranteed equipment in return for a monthly volume commitment. It is offered once per year for a one-year term. 
 
If you plan to take advantage of this program, here’s what you need to know regarding next steps and important dates coming up: 
  • By August 7: If you are an existing or past user of GCAS GF and PCAS, or if you are a rough rice or barley shipper, a communication will be sent directly to you with sign-up information. If you do not fall into this category but are interested in learning more, please contact your Union Pacific sales representative.
  • By August 31: Subsequent to this early-August communication, please follow the instructions that will be provided to submit your monthly commitments for October 2020 to September 2021 to Union Pacific.
  • By September 15: All individual Guaranteed Freight contracts will be executed via e-sign.
  • September 21: Orders for the first half of October are due.
  • October 1: The agreement term begins.

Single-Use Program, Vouchers
This program provides secure equipment for individual, one-time moves through weekly auctions from six months to three weeks before the indicated delivery period, with cars going to the highest bidder(s).

If you plan to take advantage of this program, here are the next steps:

Additional Information
Additional resources available on our website to assist in your transition to these new programs include a Secondary Freight Overview and car order/billing instructions. 

If you have questions, please contact your Union Pacific sales representative or Union Pacific Equipment Distribution, or visit the Ag Covered Hopper Distribution Programs web page.
 
We are excited to begin offering offer 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!