Union Pacific furloughs 900 because of lower shipping volumes

[Omaha Steve]

Source: OMAHA WORLD HERALD

By Steve Jordon

Union Pacific Corp. has furloughed 900 employees and mothballed 800 locomotives because of lower shipping volumes, CEO Lance Fritz told the Wall Street Journal Thursday.

The slump includes a 25 percent reduction in coal shipments from last year as more power plants switch to natural gas, a trend that could continue, he said. "The remainder of the year, we don’t know what to expect."

The Omaha-based railroad had furloughed 500 people and idled 47 locomotives in April.

Last year Union Pacific expanded its transportation workforce and added 822 locomotives as cargo volume increased 7 percent, improving service levels dramatically, Fritz said.

FULL story at link.




Read more: http://www.omaha.com/money/railroads/union-pacific-furloughs-because-of-lower-shipping-volumes/article_0272c28a-057a-11e5-b19d-bb2a8c50fe7a.html

[elleng]

1. I understand the coal part;

expected it.

[AZ Progressive]

2. Maybe they should ship water to California

Texas will be more than willing to share its water.

[sulphurdunn]

3. Maybe last year was pump and now it's dump time?

[neverforget]

4. I work for another railroad and I've been furloughed.

Business was hot and heavy up through March and then in April it died quickly. The old heads said they have never seen business die so quickly before. Hopefully it doesn't last too long.

[Ikonoklast]

5. Wait until the Panama Canal widening project is finished next year.

West Coast port facilities and rail for container traffic will be bypassed as shipping from the Far East will be able to deliver freight loaded on post-Panamax ships directly to East Coast ports.


Freight moved by ship way cheaper than rail, the farther it can go by ship shortening the distance to final user/customer without using rail the cheaper for the shipper.