The controversial charges were part of the July rollout of UP’s Intermodal Terminal Reservations System.
Cancellations of intermodal reservations later than 24 hours before gate cutoff brought a $25 fee; no-shows resulted in a $50 fee.
Intermodal marketing companies swiftly reacted against the fees, resulting in UP’s reversal, according to the Journal of Commerce.
“After further consideration, Union Pacific is indefinitely suspending the implementation of the ITR accessorial charges,” says UP Executive Vice President of Marketing and Sales Kenny Rocker in a web-based message to shippers. “Instead, Union Pacific will proactively monitor and provide visibility into each customer’s reservation utilization and will work with them to ensure reservations match actual demand.”
Replacing UP’s Gate Reservation System in use since the mid-2000s, terminal reservations system features upgraded information technology and “will more closely tie customer reservations to train capacity and terminal fluidity,” UP officials say.
The reservations system was introduced at six UP West coast intermodal terminals including two in Los Angeles, and those in City of Industry and Lathrop, Calif., and in Portland, Ore., and Tacoma, Wash.
Heavy traffic at the current reservation terminals usually prevents truckers from merely showing up without a reservation expecting to be on a train, a policy that was in place under gate reservation, according to the railroad.
Such “drive-up” practices will be more common as terminal reservation spreads to terminals at Denver, Kansas City, and Mesquite, Texas.
UP anticipates eventually accommodating drive-ups at all intermodal terminals.
