American Chemistry Council

Reciprocal switching proposal gets mixed reactions from rail shippers

Rail shippers are still digesting the Surface Transportation Board’s proposed rule for reciprocal switching, but initial reactions are mixed. Shippers back efforts to make the collection of first- and last-mile data permanent and standardize metrics for sufficient rail service, but some also wish the rule would do more to incentivize rail competition.

“All five board members said yes. That’s huge, right? There were no dissenting votes. So, we as the shipper community and the railroad community...

https://www.freightwaves.com/news/reciprocal-switching-proposal-gets-mixed-reactions-from-rail-shippers

Rail service metrics still lacking

Rail service has gotten better since the service meltdowns seen in the first half of 2022, but more needs to be done to get service metrics back to pre-pandemic levels, according to two reports on rail service.

ACC: Most say rail service in H2 2022 didn’t improve from H1

Seventy-eight percent of the members of the American Chemistry Council (ACC) say rail service was the same or worse in the second half of 2022 compared with the first half of that year, according to a report released Thursday.

Fort...

https://www.freightwaves.com/news/rail-service-metrics-still-lacking

Rail shippers watching to see whether any benefits come from CP-KCS merger

Rail shippers are waiting to see whether the merger of Canadian Pacific and Kansas City Southern will actually enhance competition and provide them with more choices.

The Surface Transportation Board issued a decision Wednesday approving the deal, saying CP (NYSE: CP) and KCS would be able to promote competition better as a merged railroad company than as separate entities. The merged company, Canadian Pacific Kansas City or CPKC, is expected to start operating around April 14.

However, STB also...

https://www.freightwaves.com/news/rail-shippers-watching-to-see-whether-any-benefits-come-from-cp-kcs-merger

Chemical shippers warn rail strike could hasten recession

A potential rail strike could be the catalyst that brings the U.S. economy into a full-on recession, the American Chemistry Council warned in publishing Wednesday an economic analysis of the impacts on its industry and others.

“[If a strike lasts one month, it] would likely put a major chill on several leading economic indicators through the first half of 2023,” ACC said in a release about the report. 

The group, which represents chemical shippers, determined a strike could result in 700,000 lost...

https://www.freightwaves.com/news/chemical-shippers-warn-rail-strike-could-hasten-recession

Los transportadores de productos químicos advierten que la huelga ferroviaria podría acelerar la recesión 

Una posible huelga ferroviaria podría ser el catalizador que llevara a la economía estadounidense a una recesión total, advirtió el Consejo Americano de Química al publicar el miércoles un análisis económico de los impactos en su industria y en otras. 

“[Si una huelga dura un mes,] probablemente pondría un importante freno a varios indicadores económicos principales hasta la primera mitad de 2023”, dijo el ACC en un comunicado sobre el informe.  

El grupo, que representa a los transportadores de...

https://www.freightwaves.com/news/los-transportadores-de-productos-quimicos-advierten-que-la-huelga-ferroviaria-podria-acelerar-la-recesion

Chemical shippers say freight rail service still lacking

A train of tank cars passes by a railroad crossing

A number of chemical shippers still face significant rail service disruptions despite freight railroads’ efforts to improve, according to recent statements from the American Chemistry Council (ACC).

An update to a survey that the trade group conducted in December, March and July documents what members see as ongoing rail service challenges: 46% viewed rail service and delays as getting worse, up from 39% in March; 48% viewed service as about the same, down from 53% in March; and 7% viewed...

https://www.freightwaves.com/news/chemical-shippers-say-freight-rail-service-still-lacking

Stakeholders spar over scope of Surface Transportation Board’s authority

As Congress considers funding the Surface Transportation Board over the next several years, freight rail stakeholders are divided on whether the agency should maintain its current ability to address freight rail service and rate issues or if it is time to expand that authority.

That dispute was on display at a recent hearing on STB’s reauthorization in front of the House Transportation and Infrastructure Committee.

The Association of American Railroads (AAR) largely seeks to maintain the status...

https://www.freightwaves.com/news/stakeholders-spar-over-scope-of-surface-transportation-boards-authority

Shippers: CP-KCS merger could reduce competition at interchanges

Contrary to assertions by Canadian Pacific and Kansas City Southern, shipper groups’ filings with the Surface Transportation Board say that the railroads’ proposed merger could harm competition in a number of ways, according to filings submitted to the Surface Transportation Board.

CP is seeking approval from federal regulators of its $31 billion merger with KCS. As the process plays out, shippers, other Class I railroads, local communities and other stakeholders are asking that CP meet certain...

https://www.freightwaves.com/news/shippers-cp-kcs-merger-could-reduce-competition-at-interchanges

Chemical trade group: Washington must prioritize supply chain issues

As a result of the supply chain disruptions of 2021, one-third of member companies of the American Chemistry Council (ACC) experienced or declared force majeure, which is when a company breaks a contract due to extraordinary circumstances.

That is among findings that the survey, conducted in November and December, discovered as it sought to determine just how last year’s supply chain chain challenges impacted the industry. The trade group also found that 98% of member companies reported...

https://www.freightwaves.com/news/chemical-trade-group-washington-must-prioritize-supply-chain-issues

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