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Tuesday, March 30, 2004 |
March 31, 2004
Freight-Car Congestion Is Worrying Union Pacific
By DON PHILLIPS
Freight congestion has spread across the Union Pacific railroad system,
especially in Southern California and the Southwest, raising concerns
about delays in agricultural shipments and international trade if a
solution is not found before the rail freight rush begins in late summer
and fall.
In Southern California, some railroad people are calling the situation a
small-scale meltdown - similar to, though not yet as bad, as the one
that spread from Houston across the Union Pacific system in 1996. Dozens
of trains daily are parked on sidings because they cannot get into or
out of the Los Angeles Basin.
So far, the slowdown has not affected international trade through the
ports of Los Angeles and Long Beach, according to railroad officials and
analysts, but the analysts are keeping a wary eye on the situation.
Asian traffic has taken an unexpected upturn in the last few months,
with a spike in shipping containers from Asia and a new flow of export
grain to China.
"At current delay levels, it's not having an effect on trade," said
James J. Valentine, railroad analyst for Morgan Stanley. "But keep in
mind this is a slow time of year,'' he said, adding that if Union
Pacific "doesn't get its problems straightened out before the rush, then
it will have an effect on freight flow."
The severity of the problem can be traced partly to Union Pacific's
effort to provide premium service to one of the largest American
carriers by rail, United Parcel Service.
U.P.S. has begun a new coast-to-coast premium service that requires
high-speed train shipment to Dallas, Atlanta and New York. The New York
train dispatched from Los Angeles on Tuesday is particularly
time-sensitive because it is scheduled to arrive in time for package
delivery on Friday rather than the following Monday.
To keep the train on time on the busy, largely single-track segment
between Los Angeles and El Paso, called the Sunset Route, railroad
dispatchers clear other trains onto sidings far ahead of the U.P.S.
train, sometimes hours ahead. At times, trains are stalled because their
crews have reached the maximum tour of duty under federal law of 12
hours, and no rested crews are available. It can take a week to sort out
such situations.
"The hot trains are a challenge, particularly on the Sunset," said
Robert W. Turner, Union Pacific's senior vice president for corporate
relations. Executives at other railroad companies said Union Pacific and
U.P.S. were discussing possible solutions, but neither company would
comment.
Union Pacific and Burlington Northern Santa Fe, the country's two
largest railroad companies, handle all the long-distance rail freight
traffic to and from the Western states. Burlington officials said their
line, which shares port traffic with Union Pacific, continues to operate
largely on time but has been forced to make changes including the
operation of more heavily loaded container trains on its main line from
Los Angeles to Chicago. Almost all Asia trade now moves by rail to and
from the Midwest, Southwest and East, and there would not be enough
trucks and drivers to handle even a small part of it.
Citing the seasonal rush of Asia commerce as retailers gear up for the
Christmas season, Mr. Turner said 965 new train crew members are
graduating this quarter from the railroad's training center, 1,400 are
beginning training and a further 1,600 are scheduled for training in the
third quarter.
"We're pretty sure our crew base will be adequate by the fall rush," Mr.
Turner said.
Last week, Morgan Stanley downgraded its rating of Union Pacific stock
to underweight from equal weight, partly because of the operations
problems. Its latest freight-customer survey ranked Union Pacific near
the bottom in service among seven major North American railroads,
exhibiting "the sharpest drop of any railroad" since a survey last June.
Only CSX, one of the two big Eastern railroads, ranked lower.
"The low scores, significant negative feedback from customers, and no
signs of improvement in the weekly operating metrics were key catalysts"
for the downgrade, Morgan Stanley said.
This operating data, reported by rail companies to the Association of
American Railroads, gives evidence of Union Pacific's problems. Freight
cars on line, which can be used as a measure of congestion, were at a
high of 325,634 in the week ended March 19. The average time for a
freight car in yards has also spiked upward. At West Colton, the major
yard for Southern California, the average time was up to 49.0 hours in
the latest week from 30.8 hours in the first quarter of 2003. Average
train speed, which was 24.8 m.p.h. in the first quarter of 2003 and 22.1
m.p.h. in February, was down to 21.5 m.p.h. in the week ended March 19.
This is more important than the slight differences might indicate. Mr.
Turner said Union Pacific estimated that each decrease of one mile an
hour required 250 extra locomotives, 5,000 extra freight cars and 180
extra employees to make up for the decrease in efficiency.
Although the reasons for the Union Pacific's problems can be traced in
part to surprising growth in rail traffic, a bigger reason is a serious
miscalculation of how many engineers and conductors would stop working
when a relaxation of rules of the Railroad Retirement Board took effect
early last year.
"We admit we got caught short of people," Mr. Turner said. "We're not
contesting that. What we're doing is fixing it."
He said Union Pacific had tried to predict the number of retirements -
convening focus groups, taking surveys and even hiring the Gallup
Organization to poll employees. At first, he said, the predictions
seemed to be correct. "Then, when June rolled around and everyone was
vested for vacation in 2003, the attrition rate took off," Mr. Turner
said.
The shortages led to overworked crews and poor labor relations that
further worsened the problem, according to union officials.
James M. Brunkenhoefer, national legislative director of the United
Transportation Union, said Union Pacific had been "operating on the very
edge" for two years, ignoring union warnings of coming shortages. When
the traffic increase began last fall, the railroad pushed its employees
to work harder and punished those who tried to take time off, he said.
"The railroad took a punitive attitude toward people who had already
worked to exhaustion," Mr. Brunkenhoefer said. "You're threatening
people to go to work who have already worked too much."
Mr. Turner replied, "If people are not working or following the labor
agreements, we'll deal with them."
Copyright 2004
11:44:11 PM 
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Don’t Be Deceived
For Railroad Workers, There Is Nothing “Fair” About
The “Fairness In Asbestos Injury Resolution Act”
n n n n n
RAILROAD COMPANIES WANT CONGRESS TO TAKE AWAY YOUR RIGHTS TO SUE FOR ASBESTOS INJURIES
IF the big railroads get their way, Congress will pass S. 1125 – the so-called “Fairness in Asbestos Injury Resolution Act” – that will do away with some of your injury compensation rights under a federal law known as FELA.
FELA is the only way you can be fairly compensated for a work-related injury or disease. But the railroads want to make it even easier for them to run away from their responsibilities. All because they want to make more money on the backs of their workers, many of whom have suffered greatly from asbestos exposure.
DON’T believe their lies – there is no asbestos lawsuit crisis in the railroad industry. No railroad has ever gone under because of it. Their large profits are in no danger, even though railroad workers are.
RAILROADS already get a substantial legal break under FELA by not having to pay “punitive damage” awards that other companies might have to pay. Railroads don’t need another sweetheart deal at your expense.
IF S.1125 PASSES, ALL WORKERS LOSE!
Contact your U.S. Senators today.
Tell them S. 1125 is UNFAIR TO WORKERS and ask them
TO VOTE AGAINST S. 1125 !!
Click here to Contact Your Senators
Or Call The U.S. Senate Switchboard At 877/331-2000 |
12:31:52 PM
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