ACD Press Release

ACD Welcomes Responses from FMC, STB Promising Close Scrutiny of Surcharges Imposed on ACD Members

Arlington, VA – Following letters sent by the Alliance for Chemical Distribution (ACD) to the Federal Maritime Commission (FMC) and the Surface Transportation Board (STB) expressing concern about the recent rise in surcharges in response to the military conflict in the Middle East, leaders of both agencies have sided with shippers and promised close scrutiny of any surcharges imposed during this time of uncertainty.

ACD President and CEO Eric R. Byer released the following statement welcoming the agencies’ swift response and the recognition of ACD’s concerns:

“We are pleased to see the FMC and STB take the unfair surcharges imposed on our members seriously. Given the history of ocean and rail carriers leveraging crises to boost their bottom lines, extra scrutiny must be paid to these surcharges to avoid larger supply chain challenges. We thank the FMC and STB for their quick responses and urge them to continue using their authority to protect American shippers, ensuring our members can continue to effectively deliver the chemical products essential to Americans’ daily lives.”

In a statement, FMC Chairman Laura DiBella reiterated the high bar for granting a request for special permission to implement a rate increase with less than 30 days’ notice: “An assertion that there are increased costs, without any data on what those costs are, how long they may last, and what steps the carrier is taking to mitigate them, is insufficient in demonstrating good cause. Instead, carriers should provide information to support a conclusion that the amount and duration of the surcharge is reasonably related to the increased costs it is intended to address. This transparency would assure shippers that surcharges are being used solely to adjust to unpredicted circumstances.”

In a response to ACD’s concerns, members of the STB underscored their commitment “to enforcing applicable law as appropriate, maintaining open communication with rail carriers, shippers, and other stakeholders, and conducting active oversight of the freight rail network.” They noted that any rail fuel surcharges must have “a reasonable nexus to fuel consumption” and that carriers must “engage in reasonable rules and practices” and “uphold their common carrier obligation to provide ‘transportation or service on reasonable request.’”

To read the full letters sent by ACD to the FMC and the STB, click here.

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The Alliance for Chemical Distribution (ACD) partners with our more than 400 chemical distribution industry members to provide the education, connection, standards, and advocacy they need to responsibly move the essential products our world depends on. As leaders in the $27B+ chemical distribution industry, ACD member companies commit to the highest standards in quality, safety, sustainability, and performance through ACD Responsible Distribution^TM. For more information, visit www.acd-chem.com.