Addressing insufficient, unreliable freight rail service
|The National Grain and Feed Association (NGFA) encouraged lawmakers to introduce and support a bill to reauthorize the federal Surface Transportation Board (STB) and help address insufficient, unreliable freight rail service for the U.S. agricultural value chain.
House Transportation and Infrastructure Committee Chairman Peter DeFazio, D-Ore., and Railroads, Pipelines, and Hazardous Materials Subcommittee Chairman Donald Payne Jr., D-N.J., have drafted the Freight Rail Shipping Fair Market Act, which includes several updates that would provide fairer treatment for agricultural shippers. The most recent STB Reauthorization expired almost two years ago.
“The status quo is not working for agricultural shippers and consumers, and we urge the House Transportation and Infrastructure Committee to work together to address this significant supply chain problem,” noted NGFA and 88 other members of the Agricultural Transportation Working Group (ATWG) in a July 26 letter to committee leaders.
Among other provisions, the Freight Rail Shipping Fair Market Act would instruct STB to create rules for shippers to charge demurrage on railroads, providing a way for NGFA members to incentivize railroads to perform in the same way railroads incentivize their customers. The bill also would further define the common carrier obligation to establish minimum rail service standards.
“With fall harvest approaching, agricultural stakeholders need our partners in freight rail to be successful in delivering adequate and resilient service,” the letter states. “We urge the House Transportation and Infrastructure Committee to continue to collaborate, introduce and promptly consider a policy solution to deter future rail service failures.”