STB issues decisions on demurrage rules, billings

The Surface Transportation Board (STB) yesterday issued three decisions on demurrage and accessorial rules and charges.

The decisions were informed by a "significant number" of comments that the agency received on the issues, STB officials said in a press release.

The three decisions involve:

• A Policy Statement on Demurrage and Accessorial Rules and Charges. The final policy statement provides principles the board would consider in evaluating the reasonableness of demurrage and accessorial charges. Under the policy, "the board intends to facilitate more effective private negotiations and problem solving between rail carriers and shippers and receivers, to help prevent disputes from arising, and to help resolve disputes more effectively and cost-effective," STB officials said.
• Demurrage Billing Requirements. The final rule requires Class Is to directly bill the shipper for demurrage when the shipper and warehouseman agree to that arrangement and notify the carrier. The STB intends the rule "to help ensure the responsibility for demurrage is placed on the party in the best position to expedite the loading or unloading of rail cars," agency officials said.
• A supplemental notice of proposed rulemaking under the Demurrage Billing Requirements. The STB is inviting comments on certain modifications and additions to proposed requirements for minimum information to be included on or with Class Is' demurrage invoices.

The final policy statement will be effective May 30, and the final rule in Demurrage Billing Requirements will be effective June 20. Comments on the supplemental notice of proposed rulemaking are due June 5.