Return to embargo tactics by UP 'a major concern' for rail authority
Union Pacific (UP) has wasted little time in returning to embargo tactics, and the US ...
The Surface Transportation Board (STB), the US regulatory body that covers rail and road transport, is set to follow its maritime equivalent, the Federal Maritime Commission (FMC), in investigating the imposition of demurrage fees on shippers by carriers, according to Material Handling & Logistics. As with shipping lines, intermodal operators stand accused of abusing the demurrage system to increase profits and which this article claims is the result of rail companies introducing Precision Scheduled Railroading (PSR) strategies which have improved carriers’ profitability, but led to reduced frequency of services for shippers: “A side of the PSR revolution has involved generating new and substantial revenues by hiking demurrage and other fees, while redesigning billing practices to make it nearly impossible for shippers to avoid the demurrage fees. As a result, these fees have become a prime source of income for the railroads to boost their bottom lines—in spite of the fact that they were originally justified by the railroads as incentives for encouraging the prompt return of their equipment.”
What next for Maersk, MSC and the other alliances?
Ocean rates ex-Asia under pressure, while PSSs return to the transatlantic
Maersk's extra insurance offer for boxes just 'another money-spinner'
Capacity control by the biggest carriers will prevent rates tumbling further
Bullish MSC continues to strengthen its fleet for life after the 2M
Comment on this article