STB issues final rule to clarify demurrage regs

The U.S. Surface Transportation Board (STB) has adopted a final rule meant to clarify the regulation of demurrage, the agency announced late last week.

The final rule amends regulations governing the class exemptions for certain miscellaneous commodities, such as paper products and steel scrap, and boxcar transportation to clearly state that demurrage continues to be subject to board regulation, STB officials said in a press release.

The modification reflects longstanding court and agency rulings that these exemptions do not apply to the regulation of demurrage, they said.

Also, the rule partially revokes the class exemption that covers certain agricultural commodities so that the exemption will not apply to demurrage regulation. As a result, the exemption for agricultural commodities will be consistent with similar class exemptions covering non-intermodal rail transportation, they added.

The final rule will go into effect April 3. STB members adopted the final rule as it was proposed in October 2019.