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Source: The Fertilizer Institute news release

The Fertilizer Institute (TFI) President and CEO Chris Jahn today welcomed the Surface Transportation Board's (STB's) proposed reforms related to railroad demurrage and accessorial charges levied against shippers.

"Rail is critical to the movement of fertilizer," said Jahn. "The fertilizer industry appreciates the Board's attention to demurrage and accessorial charges, which have increased a great deal since the rail industry implemented precision scheduled railroading (PSR). These charges are completely unfair and unreasonable when shippers are unable to avoid them due to new rail carrier operating procedures, poor rail service, "bunching" of cars, or other factors. TFI remains committed, and welcomes the opportunity, to work with the Board and railroads to improve fairness, service and system fluidity."

TFI has long championed market fairness and reciprocity for rail customers and testified at a May 2019 STB hearing on demurrage and accessorial charges related to implementation of PSR and the direction of the rail industry.

"PSR represents an obsession with operating ratio at the expense of customer service and reflects a lack of competition in the rail industry. These issues do not happen in other shipping modes," Jahn continued. "Today's announcement is good news, and these proceedings appropriately prioritize network fluidity, market fairness, reciprocity, and transparency."

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