You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: During the quarter, the Union Pacific team dealt with multiple network disruptions that required us to rebuild bridges, reroute trains and connect more closely with other links in the supply chain to support and to serve our customers while we still have work ahead, our employees' dedication is a critical success factor in navigating all of those challenges.
Turning to our third quarter results.
This compares to $1.4 billion or $2.01 per share in the third quarter of 2020 despite the network and global supply chain challenges our quarterly operating ratio of 56.3% improved 240 basis points versus last year and represents a third quarter record.
We also set 3rd quarter records in operating income, net income and earnings per share.
The team did an excellent job of managing the business to produce strong results a comparison to 2019 a period with higher volumes further highlights our performance and demonstrates our focus on driving productivity and network efficiency to overcome external factors.
We also continue to make progress on our goal to reduce our carbon footprint.
The team achieved strong productivity to produce an all-time quarterly record low fuel consumption rate.
This represented a 1% improvement versus 2020 and helped our customers eliminate 5.7 million metric tons of greenhouse gas emissions.
In the quarter by using Union Pacific versus truck, momentum is building and before the end of the year, we plan to detail our emissions reduction plan with the release of our initial Climate Action Plan.
Before I talk about our market performance.
Focusing back on our review of the business, our 3rd quarter volume was flat compared to a year ago.
Gains in our bulk and industrial segments were driven by market strength in our business development efforts.
Those gains were offset by declines in our premium business group as our served markets continue to be impacted by semiconductor chip shortages and global supply chain disruption, however, freight revenue was up 12%, driven by higher fuel surcharges, strong pricing gains and a positive mix.
Let's take a closer look at each of these business group, starting out with our bulk commodities.
Revenue for the quarter was up 14% compared to last year, driven by a 4% increase in volume and a 9% increase in average revenue per car, reflecting strong core pricing gains and higher fuel surcharge revenue.
Coal and renewable carloads grew 9% year-over-year and 17% from the second quarter.
Our efforts to switch customers to index-based contracts are supporting domestic coal demand as a result of higher natural gas prices coupled with increased coal exports.
Grain and grain products were down 1% compared to last year and down 9% from the second quarter, due primarily to lower US grain stocks.
However, this was partially offset by our business development efforts and strong demand for biofuels.
Fertilizer carloads were up 10% year-over-year due to strong agricultural demand and increased export potash shipment.
And finally, food and refrigerated volume was flat year-over-year and sequentially from the second quarter.
Moving on to industrial, industrial revenue improved 22% for the quarter, driven by a 14% increase in volume.
Average revenue per car also improved 6% driven by higher fuel surcharge core pricing gains and positive mix.
Energy and specialized shipments were up 16% compared to last year and up 5% versus the second quarter, the gains were due to an increase in petroleum products as demand recovers from this time last year, and new business wins from Mexico energy reform.
Volume from forest products grew 15% year-over-year primarily driven by demand for brown paper used in corrugated boxes along with strong housing starts driving lumber shipments.
However, compared to the second quarter volume was down 2% due to the impact of the lot of fire in Northern California.
Industrial chemicals and plastic shipments were up 6% year-over-year due to strengthening demand and business wins that production rate for plastic improved from 2020.
Metals and minerals volume was up 21% compared to 2020 and up 3% versus the second quarter, primarily driven by our business development effort along with strong steel demand as industrial markets recover coupled with favorable comps for frac sand.
Turning now to premium revenue for the quarter was up 1% as a 9% decrease in volume was more than offset by higher average revenue per car.
ARC increased by 11% from higher fuel surcharges and core pricing gains.
Automotive volume was down 18% compared to last year and down 4% versus the second quarter.
Semiconductor shortages had an adverse impact to both our finished vehicles and auto parts business segment.
Intermodal volume decreased 6% year-over-year and 8% compared to the second quarter.
International volume continue to face challenges from global supply chain disruption with regard to domestic, strong demand and new business wins were also hampered by supply chain disruptions, plus e-commerce business all tough comp versus last year.
Now looking ahead to the 4th quarter of 2021.
Starting out with our bulk commodities, we're optimistic about grain business due to another strong harvest and grain export demand.
Also grain products will continue to benefit from growth of the biofuel market food and refrigerated volume should be positive with increased consumer demand, post pandemic restaurant reopenings and truck penetration growth.
Lastly, we expect coal to remain strong for the remainder of the year based on our current natural gas futures, inventory replenishment, as well as export demand.
Looking at -- looking at our industrial markets.
We continue to be encouraged by the strength of the forecast for industrial production for the rest of 2021, which will positively impact many of our markets like metals and forest.
The year-over-year comps to our energy markets are favorable.
However, we expect narrow spreads will negatively impact crude by rail shipment, but on a positive note, we expect to mitigate the lower cruise shipments with strengthened other petroleum and LPG product.
And lastly for premium, we anticipate continued challenges in automotive related for semiconductor shortages for the 4th quarter.
In regards to intermodal, limited truck capacity, inventory restocking and strength in retail sales will continue to drive intermodal demand in the 4th quarter.
However, we expect international volumes to be constrained as ocean carriers have recently taken additional actions to speed up their container returns as challenges in labor, port capacity, warehouses and drayage persist.
And on the domestic side, opportunities will face continued supply chain challenges with limited Holloway capacity and floor chassis turn time.
Overall, I'm encouraged by the opportunities in front of us for the rest of 2021 but more importantly, I want to recognize the commercial team, as they continue to focus on providing solutions for our customers to win in the marketplace.
As we had in the 2022, our commercial team is driving growth through new business plan.
From wildfires to mudslides and hurricanes, the team demonstrated perseverance to restore our network and deliver strong financial results.
In addition, as Kenny just described, the demand picture has turned out differently than we expected at the beginning of the year.
Working closely with marketing the operating team has adjusted transportation plans and added resources into the network for surging demand in coal, metals, lumber and grain.
These actions demonstrate the agility and strength of our franchise.
Taking a look at our key performance metrics for the quarter on slide 9.
Driven by wildfires and weather events during the quarter our freight car velocity and trip plan compliance metrics deteriorated compared to 2020.
Freight car velocity decreased due to increased terminal dwell and higher operating inventory levels, which led to lower trip plan compliance results.
Our entire team has been fully engaged on restoring network fluidity and the recovery is progressing.
We are seeing improvement in our metrics with reduced up car inventory and improved freight car velocity.
Our reported weekly metrics show the time required to recover the network from these events.
While we made improvement from our freight car velocity weekly low of 184 in August, to 210 miles per day in the last 2 weeks of September, our goal remains to return freight car velocity toward and 220 miles per day.
Our intermodal trip plan compliance results improved and on August the low of 61% to gain 12 points in September to 73%.
Our manifest and auto trip plan compliance results improved from 57% in August to 61% in September.
We recognize improving trip plan compliance is critical to support our customers and our long-term growth strategy.
We have maintained higher crew and locomotive resources in the short term to assist and reducing excess car inventories to drive increased fluidity.
As operating car inventory declines, we will quickly adjust resources to current volume levels.
Our cooperation and work with partners at the West Coast ports have reduced rail container dwell back to more normal levels, and with the Biden administration's efforts to expand operations at the port to ease congestion, we stand ready to move more rail containers provided that point further along the supply chain can handle increased volume.
While there is still work to be done, the team is confident in our ability to restore service to the levels our customers expect and deserve.
Turning to slide 6, we continue to make good progress on our efficiency initiatives, however, disruptions during the quarter impacted these results as well.
Locomotive productivity declined 8% compared to a year ago as we deployed additional resources to handle traffic reroutes.
Our record 3rd quarter workforce productivity was driven by efficiencies in our Engineering, Mechanical and management workforces and offset slightly by increases in train and engine workforce to address our network recovery.
We continued our focus on increasing train length, achieving a 4% improvement from the 3rd quarter 2020 to approximately 9,360 feet.
Now that the bridge has been restored, the team is again driving productivity through increasing train length as evidenced in our September train length growth to over 9,500ft.
Turning to slide 11.
Our ability to grow train length is also enabled by the completion of 9 sidings to date in 2021 with an additional 26 under construction or in the final planning stages.
These investments will enable a more reliable and efficient service product for future growth.
We also produced a record quarterly fuel consumption rate improving 1% compared to last year.
Through productivity initiatives and technology improvements, we were able to offset most of the inefficiencies stemming from the wildfires.
The operating department understands the importance we play in achieving our long-term greenhouse gas emission goals and have more work underway.
Our approach is multi-pronged with the primary emphasis around our locomotive fleet, both looking at alternative energies as well as biofuel.
As we drive productivity and manage the various network challenges in 2021.
The health and safety of our workforce is paramount, although our year-to-date employee safety results have not shown improvement in 2020 recent monthly trends provide positive momentum for the team to build upon.
Again, our approach is across a number of fronts, including employee engagement, broader deployment of technology as well as looking externally for best practices.
Additionally, we reduced cost of rail equipment incidents during the quarter.
We are encouraged by the improvement but know that we must maintain focus on promoting a safe working environment to reduce employee injuries.
So everyone goes home safe each day.
Safe operations also have a direct impact on our service product.
So this work will benefit all stakeholders.
Wrapping up on slide 12, as we look to close out 2021, I have the utmost confidence that we will continue to improve safety, increased network fluidity, improve our service product and drive productivity as we support business growth with our customers.
As you heard from Lance union Pacific achieved strong 3rd quarter financial results with earnings per share of $2.57 on an operating ratio of 56.3%.
As noted in an 8-K last month, we incurred additional expense this quarter related to wildfires, and weather the full impact of those events including loss revenue negatively impacted our operating ratio of 50 basis points and earnings per share by $0.05.
Rising fuel prices throughout the quarter, negatively impacted operating ratio by 140 basis points.
However, the year-over-year impact of our fuel surcharge programs added $0.05 to EPS.
Setting aside these exogenous issues, UP's core operational performance drove operating ratio improvement of 430 basis points and added $0.56 to EPS.
Our performance demonstrates the resiliency and efficiency built into our franchise through PSR even when operating in less than ideal conditions.
Looking now at our 3rd quarter income statement on Slide 15 where we're showing a comparison to both 3rd quarter 2020 as well as 3rd quarter 2019.
The comparison of 2021 to 2019 most clearly illustrates the efficiency we've achieved over the past 2 years, as we generated 9% higher operating income on 4% less volume.
For 3rd quarter 2021, the operating revenue up 13% and operating expense only up 9%.
We generated 3rd quarter record operating income of $2.4 billion, net income of $1.7 billion and earnings per share also with 3rd quarter records.
Looking more closely at 3rd quarter revenue.
Slide 16 provides a breakdown of our freight revenue both year-over-year and sequentially versus the second quarter.
Freight revenue totaled $5.2 billion in the 3rd quarter, up 12% compared to 2020 and 1% compared to second quarter.
Looking first at the year-over-year analysis, although volume was flat, the overall demand environment remains strong and supports pricing actions that yield dollars exceeding inflation.
On a year-over-year basis, those gains were further supplemented by a positive business mix, driving 650 basis points in total improvement.
Lower intermodal shipments, combined with higher industrial shipments drove that positive mix.
Fuel surcharges increased freight revenue 600 basis points compared to last year as our fuel surcharge programs continue to chase rising fuel prices.
Looking at freight revenue sequentially, lower volume versus the second quarter decreased rate revenue 250 basis points, highlighted by the factors that Kenny highlighted.
Continued core pricing gains and a more positive business mix.
Increased freight revenue 75 basis points on a sequential basis, driven by that same combination of higher industrial carloads and lower intermodal shipments.
Finally, rise in fuel prices and the resulting uptick in sequential fuel surcharges increased freight revenue 125 basis points.
Now let's move on to Slide 17 which provides a summary of our 3rd quarter operating expenses, which increased 9% in total versus 2020.
The primary driver of the increase was fuel expense, up 81% as a result of a 74% increase in fuel prices, a small offset to the higher prices was a 1% improvement in our fuel consumption rate.
Better efficiency was a product of both our business mix and productivity initiatives, which offset inefficiencies associated with wildfires in the quarter.
Looking further at the other expense line.
Compensation and benefits expense was up 3% versus 2020.
Third quarter workforce levels were down 1% compared to last year despite our train and engine workforce growing 3%.
This increase reflects the additional crews needed to navigate the network impact from bridge outages and whether.
Management, engineering and mechanical workforces together decreased 3%.
Wage inflation along with higher recrew and overtime costs associated with our network issues increased cost per employee 4% while still a tad elevated this level of per employee compensation increase is more in line with future expectations.
Purchased services and materials expense was flat, as higher locomotive and freight car maintenance associated with the larger active fleet was offset by reduced contractor expense.
And with automotive shipments forecasted to remain soft for at least the balance of the year, we now expect purchased services and material expense to only be up low-single digits for full year versus 2020.
Equipment and other rents was flat consistent with volume.
Other expense decreased 10% or $29 million this quarter, driven primarily by lower write-offs of in progress capital projects in 2021.
As we look ahead to the 4th quarter.
Recall that last year we incurred a one-time $278 million non-cash impairment charge in this expense category.
Looking now at our efficiency results on Slide 18 operating challenges during the quarter, again impacted our productivity, which totaled $45 million.
In total for 2021 productivity is at 280 million dollars led by our train length improvement and locomotive productivity offset by roughly $55 million of weather and incident related headwinds.
Our incremental margins in the quarter were a very strong 94% driven by solid pricing gains, positive business mix as well as continued efficiency.
PSR clearly gives us the platform to add volumes to our network in an extremely efficient manner.
Turning to Slide 19, year-to-date cash from operations increased to $6.5 billion from $6 billion in 2020, a 9% increase.
Our cash flow conversion rate was a strong 95% and year-to-date free cash flow increased $728 million or 38% driven by higher net income and lighter year-to-date, capital spend compared to last year.
Supported by our strong cash generation and cash balances, we've returned $7.9 billion to shareholders year-to-date through dividends and share repurchases.
Actions taken during the year include increasing our industry-leading dividend by 10% in May and repurchasing $27.5 million shares, totaling $5.9 billion.
We finished the 3rd quarter with a comparable adjusted debt-to-EBITDA ratio of 2.8 times, which is on par with second quarter.
We remain committed to returning great value to our owners and are demonstrating that again this year.
Wrapping things up on Slide 20, as you heard from Kenny, the overall economic environment remains positive.
It provides confidence for the future growth of our company.
Bulk is driven by strong grain volumes and coal continues to exceed expectations.
Industrial volumes remain consistent and strong across many sectors like forest products, metals and plastics.
So we are bullish on several fronts, but as you also well aware headwinds and autos and Intermodal persist, global supply chain disruptions, semiconductor shortages and the additional pressure with international intermodal volumes that Kenny just described continue to constrain our premium volume.
So, balancing these variables and with just over 2 months left in the year, we now expect volume to be up closer to 5% for full year 2021.
We are also adjusting our productivity guidance for the year, down to $350 million as the weather impact and related network challenges impede the progress we expect to make with our efficiency in 2021.
To put that in context, however, at the end of this year we will have generated almost $1.8 billion of productivity since our implementation of PSR in late 2018.
So great work overall by the team.
And more importantly, this lower cost structure and improved service product provide Union Pacific the foundation for future growth and strong incremental margins.
Lower expectations for volume and productivity are headwinds to our 2021 operating goal.
In addition, we've seen fuel prices continue to rise and pressure margins.
In fact, over the last 30 days, barrel prices have increased around $10 with spot diesel prices up over $0.25 per gallon.
Offsetting some of this margin pressure is a positive business mix and strong pricing environment.
So, all in, we now expect our full year operating ratio improvement to be in the neighborhood of 175 basis point or not quite to the high end of the guidance range we established back in January, we view that level of improvement as another great milestone on our journey to 55.
x operating ratio in 2022, especially in light of the unexpected headwinds we've had to overcome to get here.
Wrapping it up, it was a tough quarter operationally.
We made great strides to strengthen our franchise and achieved solid results.
In fact, we stand poised to finish 2021 as Union Pacific's most profitable year ever.
That achievement would not be possible without our tremendous employees.
So we're on the front lines every day serving our customers safely and efficiently while producing these record results.
While our safety metrics lag 2020 there are some positive signs, including strong September results that indicate we're taking the right actions to produce desired long-term results.
The entire team understands that safety is foundational to everything we do at Union Pacific.
Our service product has shown improvement over the past 60 days.
But there is still work to be done with increasing volumes related to the grain harvest and intermodal peak season approaching.
We understand the importance of delivering for our customers.
The opportunity to provide freight solutions to our customers is strong and gives us confidence that our long-term goals for growth remain intact.
And as you heard from Kenny even with macroeconomic headwinds, we're winning with our customers, while supply chain disruptions will likely persist in the next year, we see our 3rd quarter and year-to-date results as proof of our team's ability to perform in the face of significant challenges as headwinds turned to tailwinds, we're well positioned to build off our success and deliver even more value to our stakeholders.

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q3 revenue rose 13 percent to $5.6 billion.
q3 earnings per share $2.57.
set a quarterly record for fuel consumption rate.
qtrly union pacific's 56.3% operating ratio improved 240 basis points.
higher fuel prices negatively impacted operating ratio by 140 basis points in quarter.
qtrly business volumes, as measured by total revenue carloads, were flat.

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