(The Associated Press distributed the following article on May 6.)
LOS ANGELES — Canceling an express train contract with United Parcel Service and increasing some shipping prices are among actions Union Pacific Railroad is taking to handle growing demand in the midst of a train crew shortage.
The contract for trains that ran once a week each way from Los Angeles to New York has been canceled because it took up resources needed in other areas of the railroad, Union Pacific spokeswoman Kathryn Blackwell said.
The service began in July as a partnership with CSX railroad. Union Pacific suspended the service for April as it dealt with congestion on its 23-state system. Two other contracts with United Parcel Service for expedited service from Los Angeles to Dallas and Memphis also were suspended.
During the suspension, Union Pacific paid UPS for the added costs of drivers, gasoline and other expenses of putting those items on trucks, Black said.
Late last week, the railroad told UPS the contract for service between Los Angeles and New York would be canceled, UPS spokesman Norman Black said. However, contracts for service between Los Angeles, Dallas and Memphis were expected to resume sometime this month, Black said.
The railroad’s suspension and now cancellation of service has not affected UPS’ ability to serve its customers, although the company has noted some delays in the railroad’s service, Black said.
Union Pacific officials said they hoped at some point to resume express service between Los Angeles and New York, but the company did not say when, Black said.
Some shipping prices also will be increased by Union Pacific, senior vice president Bob Turner said.
“It’s being looked at on a customer-by-customer basis,” Turner said. “If demand for our product is outstripping our supply, then a tool to bring supply and demand into balance is a price increase.”
Union Pacific has said it was surprised by the economy’s strong comeback and burgeoning demand this year. It has begun hiring more train crews and buying more locomotives to help deal with the problem.