From May 1, Union Pacific (UP) will allow private chassis into their terminals for container retrieval.

Previously the railroad only allowed pool chassis into its terminals, leaving importers to pay storage costs on the inaccessible stacked containers.

Union Pacific believes its wheeled operational model is efficient, limiting rail dwell time and facilitating cargo flow. However, it will adjust its storage policy to allow for access to stacked containers. The railroad said this is possible after it invested in more equipment.

“We will remain a wheeled operation at our ramps, outside select hybrid locations; however, we have made capital investments in equipment and adjusted our processes to make all containers accessible at all UP ramps excluding Council Bluffs, Salt Lake City and Santa Teresa (El Paso). In addition, investments are currently underway to make the excluded locations accessible as well,” said UP in an advisory.

“Should stacking occur, customers can access their stacked shipments by bringing a marine pool chassis or a marine private chassis. As the market changes, we are changing with it to remain the international intermodal rail supplier of choice,” it added.

According to the Journal of Commerce (JOC), all other North American railroads allow private chassis, although they may charge a fee to move a container from a pool to a private chassis. 

“UP’s announcement comes weeks after it began converting its yard in Joliet, Illinois, to a partially grounded terminal. Most containers moving from ports in Long Beach, Los Angeles, and Oakland to Joliet will be placed into stacks — meaning they are “grounded” — and lifted onto trucks similar to in a marine terminal. Containers through Seattle and Tacoma will still be pre-loaded onto chassis and placed in parking spots, a so-called “wheeled operation,” said the JOC.