Government Connection

Surface Transportation Board Issues Three Decisions Related to Demurrage Rules and Charges

On April 30, the Surface Transportation Board (STB) issued its decisions on EP 757 and EP 759. The STB rejected the arguments of the Association of American Railroads, which were raised in its public comment and objections to the rulemaking. Although this statement is not binding, the principles discussed in this policy statement recognize that there may be different ways to implement and administer reasonable rules and charges. The final notice clarifies that the Board will consider all facts and arguments when adjudicating individual cases. Notwithstanding, this decision should be viewed as a win for the industry.

 

Further, the Board issued a final rule on EP 759 as it related to billing shippers directly. The final rule requires Class I carriers to directly bill the shipper for demurrage if the warehouse and shipper have agreed to this billing arrangement and the carrier is notified of such agreement. However, the Board issued a supplemental notice of proposed rulemaking as it relates to EP 759’s requirements for minimum invoice information.

 

Read the Surface Transportation Board press release to learn more.

May 01, 2020

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Surface Transportation Board

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