Rail storage fees have been a contentious issue in the shipping industry, with shippers, ocean carriers, and railroads struggling to find a solution that satisfies all parties. Amidst this uncertainty, it’s crucial for businesses to have a trusted logistics partner to navigate the ever-changing landscape.
According to a recent Freightwaves article, a coalition of 75 shipper groups, led by the National Customs Brokers & Forwarders Association of America, the National Industrial Transportation League, and the National Retail Federation, has called for clarification on who should be billed for rail storage fees. These fees are charged by railroads for storing ocean containers at rail yards throughout the country. The coalition argues that these charges should be billed to ocean carriers, not shippers, and should fall under the jurisdiction of the Federal Maritime Commission (FMC) as part of the Ocean Shipping Reform Act of 2022 (OSRA).
However, there is disagreement over which federal agency has the authority to resolve these disputes. John Butler, president and CEO of the World Shipping Council, argues that the Surface Transportation Board (STB) should have jurisdiction over rail storage fees, rather than the FMC. This confusion highlights the ongoing struggle to find a solution that satisfies all parties involved.
In these uncertain times, it’s essential for businesses to have a trusted logistics partner who can help navigate the complexities of the shipping industry. A reliable partner can provide guidance on changing regulations, assist in dispute resolution, and ensure that businesses can continue to operate smoothly despite disruptions in the supply chain.
One such logistics partner is Edward J. Zarach & Associates. With years of experience in the shipping industry, Zarach offers custom-tailored solutions to meet the unique needs of each client. By staying informed about the latest developments in the industry, including rail storage fee disputes, Zarach ensures that clients receive the support and guidance they need to make informed decisions about their shipping operations.
So as the shipping industry grapples with rail storage fee disputes and the uncertainty surrounding the jurisdiction of federal agencies, it’s essential for businesses to have a trusted logistics partner in their corner. By partnering with a reliable and experienced logistics provider like Edward J. Zarach & Associates, businesses can navigate these complex issues and maintain smooth operations in an ever-changing landscape.