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

Viewpoint: The market, not regulators, should set freight rail prices

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.

By Roslyn Layton, PhD

A recent party-line vote at the Surface Transportation Board following a complaint from a coal shipper against a freight railroad is headed to court. A request to stay the decision at the STB was rejected. The conflict is shaping up to be a referendum on STB Chair Martin Oberman’s interpretation of common carriage.

The case features a Western...

https://www.freightwaves.com/news/viewpoint-the-market-not-regulators-should-set-freight-rail-prices

STB decides against BNSF’s request to stay coal order

The Surface Transportation Board has denied a request from BNSF to halt part of an order that compels the railway to ship coal from Navajo Transitional Energy Company’s (NTEC) mine in Montana to the Pacific Northwest for export.

The board’s June order had two parts: It called for BNSF to transport a minimum of 4.2 million tons of coal on an annual basis in 2023 from the Spring Creek mine to Westshore Terminal and it called for BNSF to transport an additional 1 million annual tons in 2023 should...

https://www.freightwaves.com/news/stb-decides-against-bnsfs-request-to-stay-coal-order

Surface Transportation Board poised to enact shipper-friendly regulations

A train heads into the sunset.

The Surface Transportation Board could be poised to mandate shipper-friendly regulations aimed at incentivizing Class I railroads to improve rail service, which has deteriorated in recent months.

Mandating some form of reciprocal switching, in which shippers are granted access to a nearby competing rail network, could be something the board will act upon later this year. Reciprocal switching is one of the more contentious issues facing the board, with shippers largely in favor of the measure and...

https://www.freightwaves.com/news/surface-transportation-board-poised-to-enact-shipper-friendly-regulations

Should the freight rail industry be overhauled?

Rows of tanker cars parked at a rail yard.

Service disruptions at the Class I railroads have come to a head in recent weeks, and shippers and the unions representing rail workers are clamoring for changes to the freight rail industry of a magnitude to match the disruptions.

Some examples of subpar rail service: Excessive dwell times at the origin, resulting in the doubling of transit times between the Midwest and West Coast for grain shippers and tardy arrivals that pressure flour and feed mills and ethanol plants to temporarily cease...

https://www.freightwaves.com/news/should-the-freight-rail-industry-be-overhauled

Rail regulators want to speed emergency service responses

A photograph of railcars traveling along a field.

The Surface Transportation Board has issued a notice of proposed rulemaking that would modify existing emergency service rules so the board could “act on its own initiative” to respond to service emergencies.

The proposed rule would also set up an accelerated process to tackle acute service emergencies.

Comments on the proposed rulemaking will be due by May 23. Replies to comments are due by June 6. 

The notice, issued Friday, comes as the STB said it has heard from stakeholders over the past year...

https://www.freightwaves.com/news/rail-regulators-want-to-speed-emergency-service-responses

Rail Roundup: Sweeteners shippers bemoan rail service

Service delays sour the sweeteners

The Sweeteners Users Association (SUA), a trade group representing companies that purchase sugar for use in foods and beverages, is the latest group asking the Surface Transportation Board to address rail service issues.

SUA’s letter comes as a number of stakeholders, such as the National Feed and Grain Association, have pressed STB to act on recent service delays and other disruptions. The board will hold a hearing on April 26 and 27 to ask the U.S.-based Class...

https://www.freightwaves.com/news/rail-roundup-sweeteners-shippers-bemoan-rail-service

Home Depot offers freight rail a shipper wish list

Rail competition, connectivity, network speed and reliability are some of the big freight rail issues on the minds of shippers like Home Depot Inc. (NYSE: HD), according to the company’s director for logistics.

Because Home Depot sells products from all across North America, from forest products in western Canada to more localized building materials like drywall and concrete, good rail network connectivity “is really important,” said Robin Baggs, director of logistics for Home Depot. Baggs was a...

https://www.freightwaves.com/news/home-depot-offers-shipper-wish-list-for-rail-infrastructure