Out of Nowhere, UP Cancels 20% of Shipments Farmers Need During Biden’s Flop Presidency

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CF Industries Holdings, Inc. (NYSE: CF), is a leading global manufacturer of hydrogen and nitrogen products. Today, they informed customers it serves by Union Pacific rail lines that railroad-MANDATED shipping reductions would result in nitrogen fertilizer shipment delays during the spring planting season. They might not reach farmers in time at all. It will also delay DEF, affecting diesel trucks.

Now, CF can’t accept new rail sales involving Union Pacific for the foreseeable future. The Company understands that it is one of only 30 companies to face these restrictions.

CF Industries said the limits will affect fertilizer deliveries to Iowa, Illinois, Kansas, Nebraska, Texas, and California from its plants in Louisiana and Iowa.

The railroad ordered it to cut its shipments by nearly 20%.

HOW’S THIS FOR TIMING?

UP has a lot of problems and lots of delays. However, they are delaying products that Russia and Ukraine normally export and likely won’t.

“The timing of this action by Union Pacific could not come at a worse time for farmers,” said CF Industries CEO Tony Will. “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.

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.

IT’S A PLAN

Union Pacific has said it is limiting rail traffic and hiring aggressively as part of a plan to improve service after grain and ethanol shippers complained about shortcomings.

Federal regulators have announced plans to hold a hearing later this month about the service problems along Union Pacific and other major U.S. railroads that have forced some grain mills and ethanol plants to curtail production while waiting on trains and left farmers without a place to sell their crops because grain elevators are having trouble shipping grain.

NO WARNING

This basically came from nowhere. 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%.

They didn’t know sooner?

CF thinks they can meet the current order.

CF plans to ask the federal government to intervene and prioritize fertilizer and urea shipments. Lots of luck with asking the federal government to do anything right. They’re too busy wasting money and putting out pronoun manuals. On the other hand, they could nationalize private companies with this as an excuse – a black swan event? Of course, thinking that is a tinfoil hat to the Left, but the administration is nuts so, who knows. This could cause more inflation. Delays mean time and money.


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