Logistics association seeks rail remedies
The Association for Logistics Outsourcing has created a committee to address issues third-party logistics providers have with railroads. The Rail Council will first tackle the issue of demurrage, when railroads charge warehouses for not unloading freight cars in a timely manner.
The trade group, formerly known as the International Warehouse and Logistics Association, said it hoped to eliminate such charges by entering into agreements to unload a predetermined number of rail cars in a specified time period in exchange for railroads waiving demurrage for incidents outside the warehouse company’s control.
In many instances such fees are eventually erased, but a company can spend a considerable amount of time and money defending itself. In February, the association sought the backing of the Surface Transportation Board for its compromise solution.
