Key facts
- Union Pacific collected $91.1 million more in fuel surcharges than it paid for fuel in Q2.
- The excess fuel surcharge revenue boosted Union Pacific's profit.
- Shippers have criticized Union Pacific's fuel surcharge practices.
- The information was disclosed in a company filing.
Union Pacific generated $91.1 million more from fuel surcharges than it spent on fuel during the second quarter of the year. This information was disclosed in a recent company filing. The excess revenue from these surcharges positively impacted the railroad's profit margins for the period. The practice, however, has become a point of contention, attracting criticism from shippers who are subject to these fuel surcharges. These shippers argue that the current system allows Union Pacific to profit from fuel surcharges beyond the actual cost of fuel, thereby increasing their own operational expenses.