The U.S. Surface Transportation Board (STB) on April 30 published its final rules on reciprocal switching for inadequate service.
The rules provide shippers and receivers captive to a single Class I railroad the opportunity to use STB-directed arrangements to switch to an alternative carrier if the incumbent carrier’s service falls below performance thresholds established by STB for reliability in time of arrival, consistency in transit time, and reliability in providing first-mile and last-mile service.
“Data-sharing measures supported by NGFA included in the final reciprocal switching rule will serve to both inform and incentivize railroad performance,” NGFA President and CEO Mike Seyfert said in an April 30 press release.
“Principally, NGFA members urge STB to take other actions to achieve the service improvements the board seeks to encourage, including finalizing the petition for rules that govern rail carriers’ use of private railcars,” he noted.
Private railcar use regulations would establish financial incentives for efficiently using railcars owned or leased by shippers, NGFA said. Finalizing these regulations would build on the progress made by the board’s publication in January of final emergency service rules enabling the board to order temporary relief in emergencies more quickly and effectively.
NGFA submitted opening comments to STB on the reciprocal switching proposed rule on Nov. 7, 2023 and submitted reply comments on Dec. 6, 2023