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STB Holds Hearing on CSX Service Disruptions
The Surface Transportation Board (STB) held a public hearing focused on the CSX rail service disruptions on October 11, in Washington, DC. Executives from Occidental Chemical, Chemours, DowDuPont, and the American Chemistry Council testified to the CSX service delays that have disrupted their supply chains. The executives were joined by other industry representatives, including carmakers, miners, paper and fertilizer producers and agriculture firms.
Shippers have complained that transit times have increased dramatically since CSX began implementing a new operating system earlier this year. Most of the companies represented are beholden to only one railroad, limiting their shipping options and increasing costs. They called on the STB to develop better metrics to track rail service and to adopt regulatory reforms that would prevent future service failures by increasing access to more than one railroad.
"Over the past several months OxyChem has experienced significant CSX service disruptions at multiple locations," said Robin Burns, vice president of supply chain at the Houston-based company.
Kevin Akers, category manager for rail and Chemours echoed that sentiment saying that the company had spent more than $1.3 million rerouting product and switching to truck shipments.
"We altered production schedules to compensate for lack of delivery," Akers said. "We reduced run rates and changed formulations to keep our plant running."
VI is working with the STB and our coalition partners to address our members’ concerns over rail access. If you would like additional information on this issue, please contact us at email@example.com.