The U.S. Surface Transportation Board has put more streamlined processes in place for rail rate disputes that may benefit agricultural shippers. The STB established a voluntary arbitration program and a new procedure for rate challenges, known as the Final Offer Rate Review.
Wheat farmers and the grain trade rely heavily on rail to transport wheat to export terminals, but rates for hauling wheat are often higher than for other crops
The U.S. Wheat Associates’ Working Transportation Group is pleased that the STB recognizes rail shippers need new and innovative ways to engage railroads on rate concerns. “These rulings are a welcome sign that rail customers like wheat farmers are being heard,” says Charlie Vogel, working group chair. “The voluntary arbitration program and the FORR process will help give smaller shippers a greater ability to challenge rail rates.”
STB Chair Martin Oberman says they wanted to make smaller rail disputes reasonable and less time-consuming.
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