Union Pacific Tries to Relieve Pressure From Supply Chain Crunch

Union Pacific CEO Lance Fritz discusses the company's strong quarterly performance despite challenges like supply chain disruptions and labor shortages. He highlights the critical role of ports in the supply chain and the impact of labor shortages on distribution. Fritz emphasizes the need for increased labor in trucking and warehousing and suggests that government intervention could help. He also addresses inflation concerns and the company's efforts to manage costs. Looking forward, Fritz sees the current issues as timing-related but identifies opportunities for structural improvements in supply chain transparency.

What were some of the challenges Union Pacific faced in the third quarter?

• Increased fuel prices

• Supply chain disruptions and weather issues

• Decreased consumer demand

• New government regulations

What is the main issue causing bottlenecks at the ports of Long Beach and Los Angeles?

• Increased tariffs

• Poor weather conditions

• Lack of shipping containers

• Labor shortages in trucking and warehousing

How can customers help alleviate supply chain issues according to Union Pacific?

• By reducing the time chassis and boxes stay at intermodal ramps

• By increasing the number of shipments

• By switching to air freight

• By using smaller containers

What role does the White House play in addressing supply chain issues?

• Providing subsidies to shipping companies

• Building new ports

• Increasing tariffs on imports

• Encouraging labor force growth in trucking and warehousing

How has inflation affected Union Pacific?

• It has resulted in a reduction of services

• It has caused a decrease in employee wages

• It has led to a significant increase in profits

• It has been manageable but real, with increased costs from suppliers

What is the primary concern for Union Pacific regarding labor?

• Reducing employee benefits

• Increasing the number of train routes

• Balancing supply with demand and potential disruptions from COVID-19

• Finding new markets for expansion

What does Lance Fritz identify as a structural opportunity in the supply chain?

• Implementing stricter regulations

• Reducing the number of shipping companies

• Increasing transparency and visibility across the supply chain

• Building more warehouses