(Reuters) — Union Pacific Corp (UNP.N) said today congestion on tracks is hurting its ability to meet shipping demand even as price hikes helped the U.S. railroad operator top market expectations for quarterly results.
Operational snags have added to the labor shortage and other problems of the company that functions in 23 U.S. states and connects East Coast ports to key terminals such as Chicago.
"Operationally, we did not meet expectations, which is having an impact on our customers," Chief Executive Officer Lance Fritz said.
The railroad's customer CF Industries Holdings Inc (CF.N) last week warned of delays in shipment of its nitrogen fertilizers after Union Pacific asked certain shippers to reduce the volume of private cars on its railroad.
Freight shipment demand, however, has allowed companies including Union Pacific to raise prices and mitigate the impact of congestion, labor shortage and rising costs.
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