By Kristen Hays
HOUSTON - Union Pacific Corp will impose a $1,200 per-car surcharge on oil shippers that move crude in older railcars, the company told customers this week, becoming at least the second U.S. railroad to charge extra amid widespread safety concerns.
In a revised tariff taking effect Aug. 1, a copy of which was seen by Reuters, the No. 1 U.S. railroad posted rates that will charge shippers more if they use so-called DOT-111 railcars, which are not as strong as cars built to a higher standard the industry adopted in October 2011.
For DOT-111s carrying an average of 700 barrels of crude per car, a $1,200 surcharge would add an additional cost of $1.71 per barrel shipped.
Union Pacific said it changed its tariff in response to stronger U.S. rules for handling flammable liquids that were recently announced after a string of fiery crashes.