ILTA Files Supportive Comments on STB Demurrage Billing Requirement Proposal

ILTA on November 6 filed comments on the Surface Transportation Board’s proposal to modify its regulations regarding demurrage billing requirements. “ILTA strongly supports this proposal as a significant and positive step forward,” ILTA said in its comments. “ILTA thanks the Board for its willingness to address the unintended consequences brought about by the 2014 regulations concerning the assessment of demurrage charges. Overall, ILTA feels that the proposed rule will bring greater clarity to the assessment and collection of demurrage charges and will help ensure fair treatment of consignees such as terminal operators.”

ILTA said it appreciated the STB’s specific clarification that carriers are permitted to bill shippers directly, as some carriers have expressed the view that they are compelled to invoice terminal operators under the current framework. The proposed rule’s requirements that the carriers provide additional billing information will bring much needed transparency to the process. ILTA also said it supported the STB’s further requirement that the carrier must bill the shipper directly when notified that this has been agreed to by the terminal and shipper.

In its comments, ILTA also explained why the proposed rule was urgently needed and suggested modifications that would build on the improved process proposed by the STB.