US Sens. Tammy Baldwin (D-Wisc.) and Roger Marshall (R-Kan.) on June 28 introduced the “Reliable Rail Service Act” to help address ongoing service issues and high costs of rail shipping for American businesses.
The legislation, according to its sponsors, is designed to ensure that the largest freight railroads provide businesses with reliable services at reasonable rates. It will accomplish this by statutorily clarifying the common carrier obligation definition and establishing specific criteria for the Surface Transportation Board (STB) to consider when determining whether a rail carrier has violated its obligation.
“The Reliable Rail Service Act takes a commonsense approach to addressing high costs and unreliable service by clarifying the common carrier obligation, which under current law requires rail carriers to serve the wider shipping public on reasonable request,” said a statement from Baldwin and Marshall. “Current ambiguity around this principle has contributed to insufficient rail services and exorbitant costs for American products to get to market.”
Criteria the STB would be required to consider in its assessment under the legislation include impacts of reductions or changes in the frequency of transportation or service; availability and maintenance of reasonable local service schedules and delivery windows; impacts of reductions in employment levels; impacts of reductions in equipment; and whether the service reasonably meets the local operational and service requirements of the requestor.
The Agricultural Retailers Association (ARA) and The Fertilizer Institute (TFI) are among a long list of agriculture, industry, and labor organizations who support the bill.
“ARA appreciates Senator Baldwin and Roger Marshall for leading legislative efforts to address the continuous rail service problems faced by our industry, which has caused supply chain disruptions and negatively impacted other shippers within the agricultural industry,” said Daren Coppock, ARA President and CEO.
“Congress needs to tackle head on the significant cost increases and service disruptions that harm the businesses of our ag retailer members and their farmer customers who rely on freight rail transportation to deliver the critical crop input products to feed and fuel our nation,” Coppock added. “This proposal will provide some needed clarity to the common carrier obligation, improve the Surface Transportation Board’s oversight authority, and help ensure railroads provide reliable service at reasonable rates for shippers, which will ultimately benefit consumers.”