16 May 2023
Freight News

Customs Brokers, Forwarders and Shippers Ask U.S. Congress to Change Rail Storage Rules

More than 70 trade associations sent the U.S. House Transportation and Infrastructure Committee leadership a letter asking for clarification regarding rail storage fees charged as part of international ocean shipping: “Continuing to allow railroads to invoice importers and their agents directly without oversight undermines the purpose and intent of the Shipping Act.”

The May 2nd letter notes that there is a gap in authority between the Surface Transportation Board (STB) and the Federal Maritime Commission (FMC) to regulate these charges: “The lack of clear statutory authority for the FMC to address unreasonable rail storage charges assessed under ocean carrier through bills of lading is a gap that must be clarified.”

The letter adds: “… the railroads’ storage charges under through bills of lading should more appropriately be invoiced through the ocean carriers. Rail storage charges assessed against containers moving in International commerce, an as-yet unaddressed abuse of demurrage charges, should clearly and formally fall within FMC authority through an act of Congress.”

Read more in an article from the American Journal of Transportation.

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