STB Proposing Changes to Ease Supply Chain Issues on Railroads
The Surface Transportation Board recently voted to issue a proposed rule intended to ease the process for shippers to request emergency intervention when facing supply chain delays on rail lines. The proposed rule, adopted April 22, would shorten the process for petitions for STB emergency service orders, under which the STB directs railroads to divert cargo onto other lines or railroads. It also would remove the process that a shipper secure an alternative carrier in advance, instead only requiring a list of potential alternative carriers.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
“The rail service challenges shippers are currently experiencing are amplified by certain recent conditions but are not new,” STB Chairman Martin Oberman said on April 22 following the STB’s adoption of the proposal. “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.”
“On Friday, our administration took emergency action to get goods moving faster and lower shipping costs,” White House Press Secretary Jen Psaki said on April 25. “The Surface Transportation Board, which regulates railroads, acted on a bipartisan basis to help bring relief to American businesses that ship their goods by freight rail,” she said. “This emergency rule would allow it to address situations where a monopoly railroad isn't providing adequate service and show an alternative railroad to step in. So if a business wants to move their goods and the railroad that they are contracted with isn't allowing them to move them quickly, this will allow them to have some flexibility, hopefully allowing the movement of more goods, getting them on shelves, lowering costs.”
Comments on the proposal are due May 23, and reply comments are due June 6. “Considering the consistent and pervasive nature of these service issues, the Board is limiting the comment period to 30 days and the reply period to 15 days,” the STB said.