Tensions Between Freight Railroads, Customers Remain High
The latest issue for rail service is a dispute between Union Pacific and poultry giant Foster Farms. The Wall Street Journal reports the conflict has reached federal regulators, with the Surface Transportation Board ordering the railroad to deliver five trains to avert significant loss of birds in California. Freight rail service has largely improved over the past year, after pandemic disruptions to supply chains, staffing shortages and demand spikes disrupted the flow of goods. Shippers are still on edge over service issues, however, and have complained to regulators that efficiency efforts including staffing cuts and an operating plan known as precision railroading have undermined service. Union Pacific says severe weather triggered its latest woes, but Foster Farms says things have deteriorated because of “systemic problems.”
Meanwhile, a federal judge blocked CSX from pursuing antitrust claims alleging Norfolk Southern cost it hundreds of millions of dollars in lost customer contracts.
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