Not Prepared for Service Tariff Adjustments from Kenny Rocker, EVP, Marketing & Sales
Announcement Number: CN2019-30
Categories: General Announcements
Posted Date: May 8, 2019
To Our Customers,
Union Pacific has been focused on implementing Unified Plan 2020 in order to provide more reliable service to our customers. Our customers play a critical role by being prepared for service so that our crews can deliver and pick-up rail cars within customer facilities in a timely manner. Union Pacific took steps to encourage this behavior by sharing the Be Prepared for Service reference material with our customers on November 5, 2018. We also notified customers of our new "Not Prepared for Service" tariff (UP 6004 Item 9055) that became effective on January 1, 2019. This tariff initially stated that a charge of $400 per car, per occurrence, would apply if the railroad is unable to deliver or pick-up rail cars due to a customer's actions.
Since the inception of the tariff January 1, Union Pacific has been charging on a per occurrence, rather than a per car fee. The application of the per occurrence billing is generating a positive trend toward aligning behaviors that produce a more reliable service product, with a greater percentage of cars being accessible and ready to pick-up from (and deliver into) industry. Therefore, we are formally modifying the tariff language as follows:
- A charge of $400 per occurrence (not per car) will apply if the railroad is unable to deliver or pick-up rail cars due to a customer's actions.
- Union Pacific will not bill for charges accrued under this tariff if the customer has fewer than three occurrences during a calendar month.
If you have any questions regarding the upcoming tariff changes, please contact your sales representative.
Sincerely,
Kenny Rocker
Executive Vice President, Marketing & Sales