The International Liquid Terminals Association has welcomed the Surface Transportation Board’s October 7 proposed rule to address unfair demurrage billing practices but cautioned that the proposal may not go far enough in practice to solve the problems faced by some in the terminal industry.

Kathryn Clay, President of the ILTA, stated: “ILTA appreciates that the Surface Transportation Board has given thoughtful attention to the unfair demurrage billing practices encountered by some of our member companies, and this proposed rule is a positive development. We are continuing to review the proposal, particularly how the changes would work in practice to ensure accountability by all responsible parties. 

“Unlike shippers, terminals do not have a contractual relationship with the railroads. As third parties to the contract between shippers and railroads, terminals may lack the ability to insist on enforcement of the improved practice suggested by the STB. We look forward to working with the STB and other stakeholders to restoring a more equitable, efficient system.”

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8th October 2019