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.
This represented a 1% improvement versus 2020 and helped our customers eliminate 5.7 million metric tons of greenhouse gas emissions.
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.
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.
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.
Fertilizer carloads were up 10% year-over-year due to strong agricultural demand and increased export potash shipment.
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.
Intermodal volume decreased 6% year-over-year and 8% compared to the second quarter.
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.
Locomotive productivity declined 8% compared to a year ago as we deployed additional resources to handle traffic reroutes.
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.
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.
We also produced a record quarterly fuel consumption rate improving 1% compared to last year.
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.
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.
Freight revenue totaled $5.2 billion in the 3rd quarter, up 12% compared to 2020 and 1% compared to second quarter.
On a year-over-year basis, those gains were further supplemented by a positive business mix, driving 650 basis points in total improvement.
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.
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.
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%.
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.
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.
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.
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.
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.
In fact, over the last 30 days, barrel prices have increased around $10 with spot diesel prices up over $0.25 per gallon.
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.
Our service product has shown improvement over the past 60 days.

Summary:
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.
Our reported weekly metrics show the time required to recover the network from these events.
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%.
Rising fuel prices throughout the quarter, negatively impacted operating ratio by 140 basis points.
For 3rd quarter 2021, the operating revenue up 13% and operating expense only up 9%.
Equipment and other rents was flat consistent with volume.