In early September, the Surface Transportation Board (STB) issued a Notice of Proposed Rulemaking (NPRM) focused on providing rail customers access to reciprocal switching as a remedy for poor rail service.
“In the past several years, and particularly since 2021, it has become clear that many rail customers nationwide have suffered from inadequate and deteriorating rail service,” Martin Oberman, STB chairman, says. “The board is proposing that one approach to improving rail service is to afford affected shippers the opportunity to obtain a reciprocal switch to a competing Class 1 carrier when service falls below a standard set in the proposed rule.”
The proposal from the STB would provide a streamlined path for rail customers to obtain a reciprocal switching order by including specific, objective and measurable criteria for determining if they are eligible. That criterion includes measures of service reliability, service consistency and adequacy of local service. The proposal would also standardize these three service metrics across all Class 1 carriers for the first time.
This decision has been praised by The Fertilizer Institute (TFI) President and CEO Corey Rosenbusch.
“Over 60% of fertilizer moves by rail and is therefore critical to the on-time delivery of fertilizer to farmers exactly where and when they need it,” Rosenbusch says. “We thank Chairman Oberman and all of the board members for their efforts to improve rail service. TFI looks forward to participating in the comment process and enactment of this important reform.”
Another organization applauding this decision is the Agricultural Retailers Association (ARA). As a part of the Rail Customer Coalition, ARA had previously co-signed comments in support of the action.
