Union Pacific tells regulators it’s already moving record West Coast container volume

WASHINGTON — Union Pacific says it’s already successfully handling the surge in container volume at West Coast ports, which began weeks ago as shippers sought to dodge a potential strike at ports on the East Coast.

“As part of our strategy of Safety, Service and Operational Excellence, we expect the unexpected. We keep a buffer of resources to handle the ebbs and flows of our business, which has allowed us to recover quickly from severe weather and natural disasters, maintain fluidity during the recent Canadian rail work stoppage, and continue to improve the service we sold our customers,” UP CEO Jim Vena wrote in a Sept. 30 letter to Surface Transportation Board Chairman Robert E. Primus. “This approach also is enabling us to successfully handle the increased traffic we are seeing in 2024, with international volumes up more than 20% year to date.”

Last week Primus requested information from BNSF and Union Pacific about how they would be able to handle an anticipated rise in container volume as importers divert shipments to the West Coast in order to avoid gridlock at East Coast and Gulf Coast ports. As expected, dockworkers went on strike today at ports from Maine to Texas.

In September, UP’s year-over-year West Coast port volumes rose 40%. “We expect some of these shifts to continue, and we are well-positioned to support it,” Vena wrote.

UP has activated contingency plans to help accommodate shifts in volume. Efforts include increasing well car supply to the ports of Los Angeles and Long Beach by 27% since the beginning of September; adding crews at inland intermodal terminals, including Global 4 in Joliet, Ill., and in Marion, Ark., which serves the Memphis area; and positioning additional lift equipment at Global 4.

Thanks to capacity investments, the railroad was able to handle record intermodal volume at Los Angeles and Long Beach in August. UP has increased the number of train starts and continues to hire crews in the area.

The railroad also is working closely with ports and its international intermodal customers.

“We also are holding daily calls with the port terminals and ocean carriers, working together to establish plans for maximum throughput capability while being realistic about the incremental volume we can handle and still provide a reliable service product. Partnership at this critical hand-off point is key to reducing dwell – Union Pacific relies on the ports to efficiently unload and reload well cars while we actively balance our fleet so we are prepared to receive and move the container to its next destination,” Vena wrote.