The Surface Transportation Board on Wednesday finalized a rule meant to allow it to act more quickly in rail service emergencies.
The board issues orders to railroad companies to move goods in emergency situations, if requested by a shipper. The rule updates the STB's emergency service regulations by eliminating requirements that shippers provide commitments from other railroads when petitioning the board for alternative rail options, condensing the amount of time needed for emergency service order petitions and setting up a process to fast-track certain requests during "acute service emergencies."
“In my view, this revised approach to managing service emergencies is a long-needed reform that will help level the playing field for shippers where rail service failures have caused an acute and serious threat to their business, or when emergency relief is necessary to protect the public,” STB Chairman Martin Oberman said in a release.
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The rules were first proposed by the board in 2022 as Class I railroads struggled with formidable freight backlogs that built up after they saw a surge in demand following staffing cuts in 2020.
The National Grain and Feed Association welcomed the regulations, saying the board "closely studied and thoughtfully considered" the concerns of industry stakeholders.
"These changes will advance the efficiency of the U.S. rail system by enabling the Board to order temporary relief in emergencies more quickly and effectively and to more rapidly ensure that localized problems do not spread to other parts of the rail network, while also providing more certainty that acute issues can be resolved," the group said.
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