ILTA sees STB demurrage billing proposal as ‘positive development,’ hopes to work with the board moving forward

Arlington, VA, October 7, 2019—Kathryn Clay, president of the International Liquid Terminals Association, today 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.

“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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Founded in 1974, the International Liquid Terminals Association represents more than 85 companies operating liquid terminals in all 50 states and in over 40 countries. Our members’ facilities provide critical links between all modes of transportation for liquid commodities, such as crude oil, petroleum products, chemicals, renewable fuels, fertilizer, vegetable oils and other food-grade materials that are central to the U.S. economy. Terminals provide essential logistics services that spur trade both within the United States and connect the U.S. economy with overseas markets. ILTA’s membership also includes about 400 companies that supply equipment and services to the terminal industry.