This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
Railroads are well-positioned to deliver a strong intermodal service product when trade uncertainty fades and volume returns to normal seasonal flows. Customers can expect more reliable service after several railroads pursued operating efficiencies and streamlined service last year.
Improving service for customers required working through major changes, including lane consolidations, terminal simplifications, and improved railroad interchanges. Today, customers are reaping the benefits of more consistent rail service, helping ensure containers arrive on time. Union Pacific’s service performance improved 10 points in the third quarter last year, compared to the same time in 2018. We expect to continue delivering improved results, which is vital in today’s competitive trucking environment.
Last year’s record-setting floods in the US Midwest reminded us how quickly things can change. The severe weather challenges illustrated how disruptions in one area can affect rail shipments in other areas. In addition to improving reliability, operating a safe and efficient railroad helped us return to normal service levels after repairs were made.
Providing reliable, trucklike rail service must be coupled with ease of doing business. Union Pacific continuously engages customers to improve their experience, and we learned they needed faster pricing response times. We immediately improved processes, reducing our response time by nearly 40 percent. This year, Union Pacific will introduce application programming interfaces (APIs) that give customers more information about shipment locations and equipment details, to serve as the building blocks for supply chain data integrations.
While tariffs hinder America’s global market reach, working to provide a seamless user experience and on-time container shipment arrivals will help railroads grow. We hope trade negotiations with China continue to progress and jumpstart economic growth, benefitting railroads and the customers we serve.