CF Industries warns of rail shipment delays

DEERFIELD - CF Industries Holdings Inc. Thursday said Union Pacific railroad-mandated shipping reductions would result in nitrogen fertilizer shipment delays during the spring application season.

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, the company said.

CF Industries said it will be unable to accept new sales from customers needing rail delivery involving Union Pacific for the foreseeable future.

"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, Union Pacific informed CF Industries that it was mandating certain shippers to reduce the volume of private cars on its railroad effective immediately. It was told to reduce its shipments by nearly 20%, CF Industries said.

Federal regulators are holding hearings later this month to look into the causes of the dearth of rail capacity, which the railroads largely attribute to factors outside their control, such as broader supply-chain issues and widespread labor shortages, according to The Associated Press.