Watch: How UP partners with UPS for e-commerce ground deliveries

Written by

Union Pacific, Corporate Communications

(Photo courtesy of UP)

If you’re like most consumers, you probably don’t visualize that game console or gym equipment you bought last night on your cell phone as traveling on a Union Pacific (UP) train en route to your front porch.

But you should, especially if you chose “ground” shipping.

UP and the nation’s entire rail network play a critical role in moving e-commerce boxes and packages, especially over long distances when customers choose the ground over expedited delivery service, Bonnie said. Michael, vice president of transportation at UPS, the world’s number one. largest delivery company.

UPS transports approximately 6.5% of the country’s gross domestic product (GDP) every day and is one of UP’s largest rail customers.

Each intermodal container carried by UP for UPS carries between 1,800 and 2,000 packages. (Video and caption courtesy of Union Pacific)

“Our partnership with Union Pacific is deep, with a long history and rich culture,” said Michael. “For more than 50 years, we have relied on our rail partners to transport packages that are less urgent than other deliveries on long journeys.”

It’s a partnership that UP deeply values ​​and works tirelessly to improve, as the rise of e-commerce drives increased demand for intermodal services and the related need for greater integration between UP and UPS.

Each intermodal container carried by UP for UPS contains between 1,800 and 2,000 packages. This translates to 4,000 potential customers – the person shipping the product and the person expecting to receive it.

In other words, a train of 100 containers carries packages for more than 400,000 customers, many of whom follow their product and wait at the end of the line for their game console.

“UPS is a great partner and a fantastic customer that enhances our business,” said Todd Lenczowski, General Manager, Premium, Marketing and Sales for UP. “They push us to be faster, more disciplined and more creative in finding and implementing the solutions needed to meet the high performance demands expected of sellers and buyers in the e-commerce marketplace.”

In turn, UP offers many long-haul transportation benefits, including the ability to reduce traffic congestion, GHG emissions, and reliable service in all kinds of adverse weather conditions. Products and goods can also be moved seamlessly from trucks to railroads and back to trucks, once deliveries reach a distribution center, Michael said.

“Rail transportation, especially during our peak season, offers best-in-class service, which means delivery arrives on time, with efficient service measures adhered to,” said Michael, who oversees the UPS partnership. with the nation’s Class I railroads.

For the past six holiday seasons, UP’s service has been rated “perfect” by UPS metrics. This means the railroad delivered every load and fulfilled all of its obligations to UPS during peak season.

“We know that when we give Union Pacific a load, it gets to its destination,” Michael said.

UP also provides service to UPS on some of its most critical transportation lanes, including East Coast ports and Chicago, with the ability to keep these critical lanes open during rain, snow and sleet. Often when highways and highways are closed due to bad weather, trains continue to run.

“Even though Mother Nature says you need to move a little slower, Union Pacific keeps moving, helping to keep the supply chain flowing,” Michael said.

Railways are not only reliable, they are also fuel efficient.

On average, freight railroads can move a ton of freight over 480 miles on a gallon of fuel. In fact, although railroads account for about 40% of long-distance freight volume in the United States, they produce only 1.9% of transportation-related greenhouse gas emissions in the United States.

“One of the greatest benefits Union Pacific offers customers like UPS is our ability to transport large volumes of goods long distances in an environmentally responsible manner that relieves congestion on our highways. country,” Lenczowski said.

The sustainable approach to logistics aligns perfectly with UPS’s concern to minimize its carbon footprint. In 2020, UPS avoided more than 840,000 metric tons of greenhouse gas emissions using rail, and more than 4.7 million metric tons since 2015. The shipping giant even offers shippers an option carbon-neutral expedition, which promises to plant CO2-absorbing trees for a small fee.

The service offered by UP and UPS proved especially critical during the height of the pandemic, when people were working from home, relying on both UPS and Union Pacific to deliver essential goods.

“The pandemic has underscored the critical role we play in our economy and in people’s lives,” Lenczowski said. “For me, the unsung heroes of the pandemic are the men and women who have kept our supply chain moving, keeping people safe at home.”

Michael accepted.

“We’re in a noble business,” Michael said. “The pandemic has proven that. Last year, neighborhoods held block parties to honor UPS drivers because we connect people with the things they need to live their lives and run their businesses.

“We share this nobility with the railways.”

This story originally appeared on the Inside Track section of the UP website.

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