HOUSTON (ICIS)–Trade groups representing US railroads and chemical producers and distributors are pouring over a proposed new rule on reciprocal switching issued today by the US agency that oversees railroads.
The Surface Transportation Board (STB), which oversees railroads in the US, said the new rule focuses on providing customers access to reciprocal switching as a remedy for poor service.
Reciprocal switching is when a railroad that has physical access to a specific shipper facility switches rail traffic to the facility for another railroad that does not have physical access.
The second railroad pays compensation to the railroad that has physical access, typically in the form of a per car switching charge.
As a result of the arrangement, the shipper facility gains access to an additional railroad.
The chemical industry has generally been in favour of reciprocal switching.
Published by: www.icis.com
Adam Yanelli
07-Sep-2023
