STB asks Class Is to report on intermodal supply chain problems

(Source: Progressive Railroading 07/23/2021)

Surface Transportation Board (STB) Chairman Martin Oberman yesterday sent a letter to all Class Is expressing his concern over persistent problems with congestion in the international intermodal supply chain and significant container storage fees that some shippers are being required to pay in order to receive their containers.

Overman asked the Class Is to provide certain information about the extent of congestion at key container terminals and their policies and practices for assessing storage charges.

The chairman’s request is designed to help the board better understand the magnitude of container congestion, the purpose and effect of storage fees, and whether receivers are afforded relief when they lack the ability to facilitate the release of their containers, STB officials said in a press release.

The STB has received “numerous reports reports related to the length of time that containers are being held in rail yards, and the sizeable storage fees (demurrage) some customers have been required to pay in order to obtain release of containers bearing their shipments,” Oberman said.

“The board’s principal concerns are helping to mitigate the congestion problems at intermodal yards caused by the unprecedented economic situation, improve network fluidity and provide relief to shippers and receivers who are not in a position to reasonably avoid onerous and potentially business-threatening storage charges,” he said.

The letter is available on the STB website.