Shippers Say Transportation Off Track

Recent heavy demand for wood products has not only inflated prices, but also exacerbated transportation woes, particularly in the West.

A primary source of concern has been the rail lines. Citing a shortage of experienced rail crews, Union Pacific Corp., Portland, Or., has taken the unusual step of requesting its customers temporarily scale back their shipments.

Union Pacific blames the congested railroad system on the improving economy and several early retirements due to changes in federal retirement regulations for railroad employees.

Since crews are only allowed to work 12-hour shifts, the system stretching from Oregon to Washington has either stopped in its tracks or fell short of its destination.

Union Pacific has hired more than 1,600 new train workers since the start of the year. Customers have reported recent improvement in Oregon, but the railroad in California, the Northwest and the Southwest is still running slowly. Wait times for freight cars have increased near Pendleton. Or., while train speeds have decreased.

Problems are still apparent in Los Angeles, Ca., which are leading to slowdowns in Oregon.

"The crew shortages in the Pacific Northwest appear to have gotten better," said Ron Vincent, v.p.-customer service for Portland & Western Railroad. "The problems now have shifted to the L.A. area and, of course, there are residual effects from that."

Because of the backup in service, Oregon timber operations have had to reduce operations and inventories. Union Pacific has also suggested that companies make more shipments by truck rather than rail to help relieve congestion.

"If they have certain timing demands, and we don't feel we can meet them right now, we're suggesting that they look at trucks," said Kathryn Blackwell, a Union Pacific spokeswoman. "We hope that's a temporary situation we have."

In the meantime, the clogged railways have translated into extra business for trucking companies. ocean barges, and reloads.

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