DUNKIRK, Md. – The Surface Transportation Board’s reciprocal switching rule for inadequate rail service is a “missed opportunity,” the National Industrial Transportation League says.
The final rule, adopted last week, is designed to incentivize Class I railroads to maintain service levels or face the possibility that a sole-served shipper in a terminal area will seek a reciprocal switching order that would provide access to a second railroad.
To avoid a reciprocal switching case, railroads have to meet or exceed service thresholds for on-time performance, transit time, and local switching performance. The rule applies only to freight that moves under tariffs – not contracts – and to commodities that are subject to STB regulation.
“NITL appreciates the efforts put forth by the Board in issuing this rule providing an option for shippers to seek service relief through reciprocal switching arrangements between Class I railroads. NITL is continuing its review of the rule and is encouraged by the improvements made to the service metrics,” says Nancy O’Liddy, the shipper group’s executive director. “However, NITL members are extremely disappointed by its narrow scope because this option is not available for most shippers considering the vast majority of freight rail traffic moves under contracts or is exempt from STB oversight. It remains unclear as to how many shippers will actually be able to use this new process.”
The STB said the rule could not be extended to traffic that moves under contract or commodities that are exempt from board review because it would make the rule subject to a legal challenge from railroads.
Shippers whose freight moves under contract or is exempt from board regulation can still apply for a reciprocal switch, but they must wait until a contract expires or until the board approves a request to temporarily waive a commodity exemption.
The shipper group said it was disappointed that the board did not seek additional authority from Congress that would allow it to regulate contract movements.
The NITL 13 years ago asked the STB to reform its reciprocal switching rules as a way to boost railroad competition and address problems with inadequate service.
“The shipper group said it was disappointed that the board did not seek additional authority from Congress that would allow it to regulate contract movement”
Congress can’t agree on the straightforward stuff that is REALLY IMPORTANT TO ALL AMERICANS, Chances of them worry about this is TWO: Slim and none… If Congress accomplishes anything, it is more by accident than by plan… :c
So, hypothetically, I’m a shipper and use the UP for service going west. UP owns the adjacent track to the shipping docks and there are no other rails nearby. I decide upon having UP switch with BNSF due to poor service.
Does the UP make my switching moves a priority or does it do those moves only when convenient? What is their accountability if they fail to make timely pickups? Will the UP grant BNSF trackage rights to come get my loads (doubt it)? Did my overall service improve or just the opposite?
This rule implies that shippers are a gnat and that railroads are still big fly swatters. Shippers would need an attorney ($$$$$) to tell them what to do. And, they don’t need more attorneys.