NACD Member Testifies Before Surface Transportation Board
ARLINGTON, VA – National Association of Chemical Distributors (NACD) member and NACD Immediate Past Chairman Mathew Brainerd testified before the U.S. Surface Transportation Board about demurrage and accessorial charges levied by the freight rail industry. Brainerd is also the Chairman and owner of Brainerd Chemical Co. Inc. based in Tulsa, Oklahoma.
In his testimony, Brainerd stated, “Brainerd has been concerned about questionable demurrage charges for several years, but the problem has been exacerbated in the past 18 months by a reduction in the time allowed to accept rail cars before being subject to the fees — from 48 to 24 hours. There is no opportunity to negotiate the terms of delivery with customer service as the process for ordering and arranging for rail car switches to our plant is done completely online. Demurrage is intended to serve the public interest by facilitating the flow of commerce through the prompt loading and unloading of cargo. These fees were meant to improve efficiency, not generate nine-figure revenue lines for Class I railroads.”