STB to hold hearing on Class Is’ demurrage, accessorial charges

(Source: Progressive Railroading 04/12/2019)

The Surface Transportation Board (STB) has announced the details for its May 22 public hearing on railroad demurrage and accessorial charges.

The board will receive information from railroads, shippers, receivers, third-party logistics providers, and other interested parties about their recent experiences with demurrage and accessorial charges, including matters such as reciprocity, commercial fairness, the impact of operational changes on such charges, capacity issues and effects on network fluidity.

Since fourth-quarter 2018, the board has been “closely monitoring” changes Class Is have made to demurrage and accessorial charges in their tariffs, according to an STB press release. In December, STB Chair Ann Begeman wrote to Class Is asking them for information about demurrage and accessorial charges across the industry. She asked the railroads to disclose quarterly revenue from demurrage and accessorial charges for each quarter of 2018 and 2018.

Begeman’s letter to all Class Is followed an earlier letter to Union Pacific Railroad and Norfolk Southern Railway to express concern about planned changes to their tariffs that govern demurrage and accessorial charges.

The STB is requiring all participants in the hearing to submit written testimony by May 8.