Keeping the Trains on Track
This guest blog is courtesy of the Institute of Scrap Recycling Industries (ISRI).
Railroad has long been a critical mode for transporting ferrous and nonferrous scrap metal throughout the United States, particularly for distances greater than 200 miles. Since many recycling facilities are served by only one major freight railroad, there are rarely alternative modes of transportation – which means scrap metal and other recycling companies are too often at the mercy of the rail companies. This means having to deal with suffering poor rail service and skyrocketing fees. And recently, things have only gotten worse.
Since major Class 1 freight railroads implemented “precision rail scheduling” at the beginning of 2019, scrap metal recycling companies have seen astronomical increases in shipping costs. Unreasonable rail practices under this new system also include: (1) reductions in available time for rail car loading, unloading and storage; (2) service inconsistencies which precipitate demurrage and storage charges and impact facility operations (e.g. bunched cars, or…