Has Union Pacific RR created an industry-wide Force Majeure; ?

[Overmod]

Let me get this straight: UP takes no interest in shippers with too low, or too irregular, a shipping pattern.  Now it intends to threaten embargo against shippers with too high, or too regular a shipping pattern.  Remind me if UP was one of the carriers trying to impose 'punitive' excess demurrage or detention, including slow intermodal transfer in congested facilities.

[Euclid]

Regarding Force majeure (superior force), who would claim it in this situation?  Would it be the U.P. or CF Industries?  It seems that both are in the same circumstance.  CF Industries cannot ship product because of restrictions on shipping imposed by U.P., so CF would conclude that they are restricted by a superior force. 

 

Then U.P. also claims they are restricted by a superior force.  But what exactly does U.P. say the superior force confronting them is? 

 

When U.P. imposed the shipping restrictions, did they nullify service already contracted for?  If so, what reason did they cite?

 

Generally, the root cause seems to always land on the “supply chain” as though it were some kind of higher force.  But the supply chain was working when we parked it, so why isn’t it working now?

[samfp1943]

a definiution: "...Force majeure refers to unforeseeable circumstances that prevent a person or company from fulfilling a contract. The term means ‘superior force.."

The following is aC&P, from a letter from CF industries to Union Pacific RR  in regards to their rail shipments out of ther plants in Louisiana and Iowa.  

letter linked @ https://www.cfindustries.com/newsroom/2022/union-pacific-shipping-restrictions

FTA:"...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 areas such as Iowa, Illinois, Kansas, Nebraska, Texas and California. Products that will be affected include nitrogen fertilizers such as urea and urea ammonium nitrate (UAN) as well as diesel exhaust fluid (DEF), an emissions control product required for diesel trucks. CF Industries is the largest producer of urea, UAN and DEF in North America, and its Donaldsonville Complex is the largest single production facility for the products in North America.

“The timing of this action by Union Pacific could not come at a worse time for farmers,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “Not only will fertilizer be delayed by these shipping restrictions, but additional fertilizer needed to complete spring applications may be unable to reach farmers at all. By placing this arbitrary restriction on just a handful of shippers, Union Pacific is jeopardizing farmers’ harvests and increasing the cost of food for consumers.”

On Friday, April 8, 2022, Union Pacific informed CF Industries without advance notice that it was mandating certain shippers to reduce the volume of private cars on its railroad effective immediately. The Company was told to reduce its shipments by nearly 20%. CF Industries believes it will still be able to fulfill delivery of product already contracted for rail shipment to Union Pacific destinations, albeit with likely delays. However, because Union Pacific has told the Company that noncompliance will result in the embargo of its facilities by the railroad, CF Industries may not have available shipping capacity to take new rail orders involving Union Pacific rail lines to meet late season demand for fertilizer..."

Things should start geting really interesting and possibly the American Public (and politicans) will get a healthy dose of "Tne Law of Unitended Consequences"???