Rockefeller: DOT report shows need for rail bill
U.S. Senate Commerce Committee Chairman John D. 'Jay' Rockefeller IV said a new study by the Transportation Department's Inspector General “provides important new evidence that big railroads are using their growing market power to squeeze concessions out of their shipper customers.
“Railroads are no longer negotiating in good faith with their customers, but simply offering 'take it or leave it' deals that do not guarantee shippers the service quality they need, most notably for coal and lumber shippers,” Rockefeller said.
The report said, “Rail service guarantees in general have become more difficult for commodity shippers to obtain, especially through contracts. While tariff-based service options can provide some service guarantees, they are predetermined by the railroads, and only contracts can provide shippers with negotiated guarantees. However, the share of shipments moving under contracts has declined since 2004 for all the commodities we examined.”
Rockefeller said 'the report also notes that service levels rose in 2008 and 2009, when our economy hit rock bottom. The report suggests shippers will again be at greater risk for poor service as our economy continues to recover from one of the worst recessions since the Great Depression. U.S. businesses must be able to compete in the global economy and should not be paying higher prices for less reliable rail service.”
Rockefeller said his proposed Surface Transportation Board Reauthorization Act of 2011 “would require railroads to provide service expectations so shippers know what they are paying for and have a way to make sure they get it.”
Rockefeller: DOT report shows need for rail bill
