Chemical shippers endorse STB effort to reform freight-rail ship rates

The American Chemistry Council (ACC), which represents rail shippers in the chemical manufacturing industry, announced its support last week for the Surface Transportation Board's recently proposed changes to its process for reviewing freight-rail rates.

The board last week announced new rules covering its rate review procedures. The proposed reforms are a "positive step toward improving how the STB addresses freight-rail problems," said ACC President and Chief Executive Officer Cal Dooley in a press release.

"We applaud the members of the STB for their thoughtful leadership and commitment to getting our nation’s freight-rail policies back on track," Dooley said. "Chemical manufacturers across the country have been negatively impacted by excessive freight- rail charges and lack of competitive rail service for too long."

The STB's proposed rules would establish a new rate review option for smaller cases, the final offer rate review (FORR), that would use procedural limitations to contain the cost and complexity of a rate case. In addition, the board has proposed a streamlined market dominance process that could be used in any rate review proceeding.

The changes are designed to make the procedures "more accessible, efficient, and transparent, including for small customers," STB officials said in a press release.