DEERFIELD – CF Industries Holdings Inc. said Thursday that shipping reductions imposed by the Union Pacific Railroad will cause nitrogen fertilizer shipment delays during the spring application season.
CF Industries ships to customers via Union Pacific rail lines primarily from its Donaldsonville complex in Louisiana and its Port Neal complex in Iowa. The rail lines serve key agricultural regions such as Iowa, Illinois, Kansas, Nebraska, Texas and California, the company said.
CF Industries said it would not be able to accept new sales from customers requiring rail delivery involving Union Pacific for the foreseeable future.
“The timing of this action by Union Pacific couldn’t come at a worse time for farmers,” said Tony Will, President and CEO, CF Industries Holdings, Inc. “Not only will fertilizer be delayed by these restrictions shipping, but other fertilizer needed to supplement spring applications may not reach farmers at all. By imposing this arbitrary restriction on just a handful of shippers, Union Pacific is jeopardizing farmers’ crops and increasing the cost of food to consumers.
On Friday, April 8, Union Pacific notified CF Industries that it was requiring certain shippers to reduce the volume of private cars on its railroad effective immediately. He was told to cut his shipments by nearly 20%, CF Industries said.
Federal regulators are holding hearings later this month to examine the causes of the rail capacity shortage, which the railroads largely attribute to factors beyond their control, such as more supply chain issues. wide and widespread labor shortages, according to the Associated Press.