Transportation

By Randy Gordon, President and CEO The NGFA joined with 23 other national producer, commodity and agribusiness organizations today in commending the federal Surface Transportation Board (STB) for its actions to examine whether demurrage and accessorial charges being imposed by Class I carriers on rail customers are commercially fair and reciprocal. In a statement filed with the STB, the groups particularly commended the agency for scheduling a May 22 public hearing on the issue. “In the interest of obtaining a factual record, we encourage the (STB) to structure the format of its public ... Read More

By Randy Gordon, President and CEO The NGFA on April 4 submitted a statement to the federal Surface Transportation Board (STB) urging that it reject a petition filed by the Association of American Railroads that would require the agency to conduct cost-benefit analyses on virtually all rulemaking proceedings, which would further undermine the agency’s effectiveness in providing regulatory oversight of the freight rail industry. The NGFA pointed out that the AAR petition would impose restrictions on the STB that exceed those imposed on any other federal agency. The NGFA said it did not ... Read More

By Randy Gordon, President and Chief Executive Officer The Surface Transportation Board (STB) announced this week that it will conduct a significant public hearing on May 22 in Washington to examine demurrage and accessorial charges and related practices imposed by Class I railroads. Railroads, shippers, third-party logistics providers, and other interested parties will be invited to speak at the hearing and report their experience with demurrage and accessorial charges, the STB said, including matters such as reciprocity, commercial fairness, operational and capacity issues, and ... Read More

By Randy Gordon, President and Chief Executive Officer The NGFA earlier this month voiced strong support for Surface Transportation Board (STB) Chairman Ann Begeman’s efforts to focus on tariff rules of several Class I railroads that are imposing rapidly changing and increasingly higher demurrage and accessorial charges. “Your efforts dating back to November 2018 calling on Class I railroads to examine their demurrage and accessorial charges from the standpoint of commercial fairness and appropriate reciprocity is welcomed by NGFA and rail customers, and is greatly needed,” the NGFA said ... Read More

The U.S. Army Corps of Engineers announced the closure of Lock 25, which is on the upper Mississippi River within the St. Louis District, from March 8-15 for upgrades to the lock electrical controls. The Corps accelerated the date of this closure — originally scheduled for March 22-29 — in response to industry feedback. As noted in the Corps’ Feb. 26 announcement, some of the work that will be done during March 8-15 will be “in preparation of major repairs planned for next winter.” NGFA will keep members notified of official closure notices. ... Read More

By Randy Gordon, President and CEO The two Canadian Class I rail carriers – the Canadian Pacific (CP) and Canadian National (CN) – in early February joined their U.S.-based brethren in submitting reports to the Surface Transportation Board (STB) detailing millions of dollars of earnings generated during 2018 through demurrage and accessorial charges assessed on rail customers. CP reported generating a total of $43.77 million, $30.14 million of which were demurrage charges while $13.63 million were accessorial charges. Meanwhile, the CN reported accruing revenues totaling $30.18 million, ... Read More

By Randy Gordon, President and CEO The nation’s Class I rail carriers have submitted reports to the Surface Transportation Board (STB) detailing millions of dollars of earnings generated during 2018 through demurrage and accessorial charges assessed on rail customers. Of the carriers reporting, CSX Transportation Co. topped the revenue earners – generating a total of $365.7 million in demurrage and accessorial revenue. Norfolk Southern Corp. was second at $335.68 million, followed by BNSF Railway at $279.06 million and Union Pacific Railroad at $232.36 million. The Kansas City Southern ... Read More

By Randy Gordon, President Two individuals recently confirmed by the Senate to join the federal Surface Transportation Board (STB) will be officially in place by early next week. STB Chairman Ann Begeman told the NGFA that she received permission from the White House this week to swear in Patrick Fuchs and Martin Oberman, both of whom were confirmed by the Senate on Jan 2. The STB is responsible for providing regulatory oversight of the freight rail industry. Fuchs was sworn into office on Jan. 17, and Begeman said she intends to do likewise for Oberman on Jan. 22. Fuchs, a Republican ... Read More

By Randy Gordon, President The Norfolk Southern Corp. (NS) has responded to a Nov. 27 letter from Surface Transportation Board Chairman Ann Begeman, in which she voiced potential concerns about changes to its operating plan to implement the so-called “precision scheduled railroad” model championed by the late E. Hunter Harrison. Begeman had written to NS Chairman, President and Chief Executive Officer James Squires stating that the staff of the STB’s Rail Customer and Public Assistance Office expect to engage in weekly conference calls with the railroad’s senior management to be kept ... Read More