Union Pacific 2012 Annual Report Download - page 28

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28
Intermodal – Higher fuel surcharges, including
improved fuel recovery provisions, core pricing
gains and volume growth increased freight
revenue from intermodal shipments in 2012.
Volume levels from international traffic remained
flat year-over-year as the loss of a customer
contract in the first half of the year offset modest
West Coast import growth. Domestic traffic
increased 3% versus 2011 due to better market
conditions and continued conversion of traffic
from truck to rail.
Fuel surcharge gains, including better contract
provisions for fuel cost recovery, and pricing
improvements, partially offset by lower volume,
increased freight revenue from intermodal shipments in 2011 compared to 2010. Volume from
international traffic decreased 5% in 2011 versus 2010, driven by softer economic conditions, reflected in
a muted international peak shipping season, which usually starts in the third quarter, and the loss of a
customer contract. Conversely, conversions from truck to rail and recovering consumer demand offset
competition for domestic shipments, resulting in a 2% volume increase in domestic shipments during
2011.
Mexico Business – Each of our commodity groups includes revenue from shipments to and from Mexico.
Revenue from Mexico business increased 8% to $1.9 billion in 2012 versus 2011. Volume levels for four
of the six commodity groups (industrial products and agricultural products declined), were up 5% in
aggregate versus 2011, with particularly strong growth in automotive and intermodal shipments.
Revenue from Mexico business increased 16% to $1.8 billion in 2011 versus 2010. Volume levels
increased 9% in aggregate versus 2010, with particularly strong growth in automotive and industrial
products. Coal was the one commodity group that declined as one of our customers conducted a
supplier contract renewal during the year, shifting transportation modes from rail to truck during the
process.
2012 Intermodal Carloads