A federal oversight board appears poised to make significant railroad freight rules changes to combat supply chain inefficiencies.
“The rail service challenges shippers are currently experiencing are amplified by certain recent conditions but are not new,” Surface Transportation Board (STB) Chairman Martin J. Oberman reportedly stated. “For several years the Board has gathered information showing that the existing emergency service rules are too cumbersome to be of use to shippers in need of immediate relief. This proposed rule would make it possible for a shipper to receive relief in a short but reasonable amount of time during an emergency.”
The STB unanimously approved proposed emergency service regulations that would effectively compel railroad officials to ensure goods and materials were transported in a timely fashion. Along with expediting requests for services from shippers in the agricultural sector, the STB would require railroad organizations to share tracks when practical.
“The industry continues to work 24/7 and take measures to bring service across the network back to a level customers deserve and expect,” the Association of American Railroads reportedly stated. “This includes hiring new employees, bringing on additional power where appropriate, and closely coordinating with its customers.”
Although the Association of American Railroads indicated it was reviewing the measure, the STB reportedly moved forward with hearings in late April. Calling the gathering “Urgent Issues in Freight Rail Service,” insiders anticipate substantial changes to an industry some say is in decline. Members of the Agricultural Transportation Working Group (ATWG), associated with the American Farm Bureau Federation, appear to be leading the charge on behalf of growers and ranchers to upgrade rail transportation on a need basis.
“While several factors contribute to these carriers’ rail service challenges, we consistently hear that significant reductions in train crew numbers and other personnel have severely hamstrung the rail carriers’ ability to maintain their prior levels of service, to overcome the typical day-to-day issues that affect railroad service plans, and to respond to changes in rail freight demand,” ATWG reportedly stated.
Part of the STB’s proposed rules changes would include truncating the current timeline shippers follow to get rail transport relief. The late-April hearings reportedly considered a policy initiative that creates “acute service emergencies, such as those involving public health or safety issues and imminent and extended potential plant shutdowns.” Under this guideline, an STB official could make a judgment call on emergency petitions within 48 hours.
“This rule is aimed at removing some of the roadblocks that have apparently kept shippers from being able to use the rules,” Oberman reportedly stated. “Given the persistent and serious problems presently affecting freight rail service, it is important for the Board to consider new approaches for providing much-needed relief to rail customers, not only for the customers’ benefit, but for the well-being of the nation’s economy and all consumers.”
Sources: wsj.com, logisticsmgmt.com
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