Dive Brief:
- Union Pacific in April launched a new direct service connecting Southern California to metro Chicago in a continued bid to capture more over-the-road shipments and relieve roadway congestion, according to a press release.
- The service connects the railroad’s Lance Fritz Inland Empire Intermodal Terminal in Fontana, California, to its yard in Northlake, Illinois. It also compliments an existing service between the same California terminal and its yard in Joliet, Illinois.
- Service transit times for eastbound and westbound shipments will be about four to six days, depending on the contracted services, according to the press release.
Dive Insight:
Railroad executives view the weak freight market and the trucking industry’s struggles as an opportunity to win more business from shippers.
Union Pacific said its new direct line provides another option for shippers seeking lower drayage costs in both the Chicago area and in Southern California by providing an intermodal option closer to the first and final mile.
It also aligns with the company’s efforts to boost network efficiencies and push shippers to shift freight to intermodal, which Union Pacific President Beth Whited has noted as a priority.
Part of Union Pacific’s strategy to secure more freight includes adding on-dock service at Port Houston, which allows intermodal containers to be offloaded from ships directly to railcars. Union Pacific has also partnered with Canadian National and Ferromex owner Grupo México Transportes to create Falcon Premium, which leverages portions of the railroads’ networks to provide shippers cross-border options to and from Canada and Mexico with a connection in Chicago.
“Connecting Chicago to the Inland Empire is another example of Union Pacific expanding its services to more markets to meet our customers’ needs and to help capture over-the-road shipments, easing congestion on our nation’s highways,” Kari Kirchhoefer, senior vice president-Premium, said in the press release.
