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Rep. Axne Backs Rail Reform Legislation to Shore Up Supply Chains and Reduce Delays

Iowa

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Today, Rep. Cindy Axne (IA-03) announced her support for legislation that would make key reforms to the railroad industry to help fix urgent issues in the rail industry to move freight more efficiently and shore up supply chains.

The Freight Rail Shipping Fair Market Act will reauthorize the Surface Transportation Board, the federal agency charged with the economic oversight of freight rail, and create a fair and competitive marketplace for the Class I freight railroads and their captured customers through strengthening the board’s authority and other commonsense reforms.

“For too long freight rail companies have focused on cutting costs and lining the pockets of their shareholders over providing timely and reliable service so our farmers, manufacturers, and producers can get their goods to market,” Rep. Axne said. “Throughout the year, I’ve heard from Iowa farmers and business how these delays are affecting the entire supply chain, adding additional cost to Iowa families. I support this bill that will provide necessary reform and oversight to make sure freight rail companies refocus their efforts on putting consumers first.”

Specifically, the bill:

  • Strengthens the Board’s authority to address rail service emergencies;
  • Requires rail contracts to include service delivery standards and remedies, while leaving details to be privately negotiated between parties;
  • Creates financial incentives for both railroads and their customers to efficiently move railcars;
  • Supports railroad efforts to identify where freight is located on their systems while in transit; and
  • Adequately funds the Board to allow for quicker dispute resolution when petitioned.
According to reports, the number of grain car orders that went unfulfilled in the second quarter of 2022, compared to the second quarter of 2021, more than tripled from 62,000 to 204,000. Nearly 70% of these grain cars were 11 or more days delayed. Additionally, the rail industry reduced their workforce from 174,000 workers in 2015 to 116,000 in 2021 with the majority of the layoffs occurring prior to the pandemic. This reduction of the labor force contributed to the disruption of service while resulting in significant profits for the industry.

In April, after hearing from Iowa farmers about unreliable rail service, Rep. Axne wrote a letter with Rep. Randy Feenstra (IA-04) to the Surface Transportation Board (STB) to request swift action in addressing the significant delays in rail shipments impacting agricultural goods. Following the letter, the STB held public hearings with the railroad industry and impacted stakeholders to address the issues. However, farmers and businesses in Iowa continued to see delays and in June, Rep. Axne joined over 50 bipartisan colleagues in sending another letter to the STB expressing concern.

Rep. Axne has made addressing the supply chain issues a top priority in Congress. Last November, Axne unveiled her Supply Chain Solutions Agenda, a list of commonsense and bipartisan legislation to alleviate economic disruptions affecting Iowa families and businesses.

The Freight Rail Shipping Fair Market Act is supported by numerous agricultural and labor groups, including: Agribusiness Association of Iowa, Agriculture Transportation Coalition, American Farm Bureau, American Soybean Association,  Brotherhood of Locomotive Engineers and Trainmen-International Brotherhood of Teamsters, Growth Energy, International Brotherhood of Electrical Workers, International Brotherhood of Teamsters, Iowa Institute for Cooperatives, National Farmers Union, National Pork Producers Council, National Corn Growers Association, Renewable Fuels Association, and many more.

Original source can be found here.

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