Bipartisan Reliable Rail Service Act will help businesses get their products to their destination quicker, strengthen American supply chains, and bring down the cost of goods for families
WASHINGTON, D.C. – Today, U.S. Senators Tammy Baldwin (D-WI) and Roger Marshall (R-KS) reintroduced the Reliable Rail Service Act to help address the unreliable service and high costs of rail shipping for Wisconsin farmers and manufacturers. The legislation would strengthen our rail supply chain and ensure the largest freight railroads provide American businesses reliable services at reasonable rates so products can get to market more efficiently and costs are lower for families. The Reliable Rail Service Act is supported by members of the agricultural industry, labor organizations, energy producers, and manufacturers who know firsthand how poor service, significant disruptions, and sky-high prices are impacting their businesses and prices for consumers.
“Across the Badger State, our farmers, small businesses, and manufacturers rely on rail service to get their products to market and make ends meet,” said Senator Baldwin. “But when rail service is unreliable, it puts their livelihoods on the line, disrupts supply chains, and drives up costs for hardworking Wisconsin families. That’s why I am proud to work with my Republican colleague to once again introduce our Reliable Rail Service Act and help level the playing field for Wisconsin workers, grow our Made in Wisconsin economy, and keep costs down for consumers.”
“Kansas’s farmers and ranchers depend upon reliable transport of their world-class goods to the rest of the country, and Class 1 railroads are not meeting expectations – this is a disservice to hard-working Kansans,” said Senator Marshall. “This bill lays out reasonable requirements for rail carriers to meet these important obligations, and I look forward to working with Senator Baldwin on getting this to the finish line.”
Rail shippers including farmers, energy producers, and manufacturers continue to face poor service, significant service disruptions, and sky-high prices that are impacting communities and consumers, all while profits for the nation’s largest railroads are at record highs.
The Reliable Rail Service Act takes a commonsense approach to addressing high costs and unreliable service by clarifying the “common carrier obligation,” which under current law requires rail carriers to serve the wider shipping public “on reasonable request.” Current ambiguity around this principle has contributed to insufficient rail services and exorbitant costs for American products to get to market. Clearly defining the “common carrier obligation” has taken on greater importance as the railroad industry faces consolidation and has undertaken Wall Street practices that reduce capacity on the rail network.
The bill establishes specific criteria for the Surface Transportation Board (STB) to consider when evaluating whether carriers are meeting their common carrier obligation to give shippers much-needed certainty that is currently lacking.
“For years, dairy processors have struggled to use America’s rail system because of lack of reliability and reduced service schedules. The Reliable Rail Service Act is commonsense legislation that will provide greater clarity to the railroad’s common carrier obligations and ensure that they provide more dependable service at sensible rates,” said Dr. Michael Dykes, President and CEO of the International Dairy Foods Association. “IDFA applauds Sen. Baldwin and Sen. Marshall for introducing this legislation to improve transparency in the rail industry and restore the balance between carriers and shippers so the U.S. dairy industry can move products more reliably by rail.”
“Senators Baldwin and Marshall have proposed smart, and a much-needed reforms to help fix persistent freight rail service failures that are plaguing chemical manufacturers,” said Chris Jahn, President and Chief Executive Officer of the American Chemistry Council. “If members of Congress are serious about bringing jobs back, leading global trade, and making more in America—not China—they should back this bill. We urge Democrats and Republicans to support this important legislation because it will help ensure that railroads deliver on their obligation to provide reliable service to U.S. manufacturers.”
“IWLA strongly supports the Reliable Rail Service Act and thanks Senator Baldwin for reintroducing this important bill,” said Jay D. Strother, International Warehouse Logistics Association (IWLA) President & CEO. “Clarifying the common carrier obligation is critical to ensuring that railroads provide consistent, fair, and timely service. This legislation gives the Surface Transportation Board the tools it needs to hold carriers accountable, enforce meaningful service standards, and support the 3PL warehouses that keep America’s supply chain moving.”
“We applaud Senators Baldwin and Marshall for reintroducing the Reliable Rail Service Act to improve our nation’s freight rail network,” said Greg Regan, President of the Transportation Trades Department, AFL-CIO. “Unfortunately, America’s freight rail companies too often fail to provide the equal, timely, and affordable service required of them by federal law. Let’s hold railroads accountable and better serve the small businesses, farmers, and other customers who rely on freight rail to transport their goods.”
“Clarification of the common carrier obligation has been needed for decades and this bipartisan bill provides STB with clear oversight rules to help address our nation’s freight railroad supply chain challenges and improve rail service for agricultural shippers,” said Mike Seyfert, President and CEO of the National Grain and Feed Association. “NGFA members appreciate Senator Baldwin and Senator Marshall’s leadership in responding to rail service issues and for cosponsoring this legislation, which will help regulators respond to service disruptions that cause hardship for livestock producers, grain exporters, and grain processing facilities.”
“The Wisconsin Farm Bureau appreciates the work of Sen. Baldwin to address the definition of common carrier service obligation and increase the authority of the Surface Transportation Board to address agricultural rail needs,” said Brad Olson, President of the Wisconsin Farm Bureau Federation. “Wisconsin farmers are dependent on the movement of agricultural goods by rail and we hope this increased authority will lead to greater efficiency within the rail industry.”
The Reliable Rail Service Act is endorsed by the Agricultural Retailers Association, American Petroleum Institute, American Chemistry Council, American Forest & Paper Association, American Soybean Association, Consumer Brands Association, Essential Minerals Association, Freight Rail Customer Alliance, Glass Packaging Institute, Growth Energy, International Dairy Foods Association, International Warehouse Logistics Association, National Grain and Feed Association, National Industrial Transportation League, National Milk Producers Federation, National Stone, Sand & Gravel Association, North American Millers’ Association, Private Rail Car Food and Beverage Association, The National Grange, Western Coal Traffic League, American Cement Association, Recycled Materials Association, Alliance for Chemical Distribution (ACD), National Farmers Union, Great Lakes Timber Professionals, American Train Dispatchers Association (ATDA), Brotherhood Of Locomotive Engineers and Trainmen (BLET), Brotherhood of Maintenance of Way Employes Division (BMWED)-IBT, Brotherhood of Railway Carmen (BRC), Brotherhood of Railroad Signalmen (BRS), International Association of Machinists and Aerospace Workers (IAM), International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers (IBB), International Brotherhood of Teamsters, Teamsters Rail Conference, National Conference of Firemen and Oilers, SEIU (NCFO), Sheet Metal, Air, Rail and Transportation Workers-Mechanical Division (SMART-MD), Sheet Metal, Air, Rail and Transportation Workers-Transportation Division (SMART-TD), Transportation Communications Union (TCU), Transport Workers Union of America (TWU), and Transportation Trades Department (TTD).
A one-pager on the legislation is available here. Full text of the legislation is available here.
An online version of this release is available here.
