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Agri-Pulse reports:

CF Industries is warning that shipments of nitrogen fertilizer will be delayed because of "railroad-mandated shipping reductions" imposed by Union Pacific.

Union Pacific told the fertilizer manufacturer April 8 it would have to reduce its shipments by nearly 20%, and that "noncompliance will result in the embargo of its facilities by the railroad," CF said in a news release Thursday. As a result, the company said it "may not have available shipping capacity to take new rail orders involving Union Pacific rail lines to meet late season demand for fertilizer."

The railroad said it was taking a series of actions to address congestion, including "partnering with customers to begin a metered approach in the coming days," spokesperson Kristen South told Agri-Pulse.

"The approach allows us to continue serving all customers while simultaneously working through a backlog of cars, restoring our ability to process volume - an approach we successfully applied last year with West Coast intermodal traffic," South said.

The Surface Transportation Board has scheduled a hearing for April 26-27 on rail service issues that have prompted complaints from the National Green and Feed Association and Ag Secretary Tom Vilsack.

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