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One year after the East Palestine, Ohio train derailment created an environmental disaster, the Biden administration on Tuesday unveiled new regulations intended to shore up freight rail safety. Drone footage shows the freight train derailment in East Palestine, Ohio, U.S., February 6, 2023 in this screengrab obtained from a handout video released by the NTSB. Yet the new rule stops short of the kind of rail safety updates that the Biden administration and members of Congress had originally envisioned as a response to the East Palestine disaster. Making any major updates to rail safety will require congressional funding that has not yet been approved. The stalling of the Railway Safety Act also underscores the power of the freight rail industry's Washington lobbying shop, the Association of American Railroads (AAR).
Persons: Pete Buttigieg, Biden, Vince Verna, Buttigieg Organizations: Federal Railroad Administration, NTSB, Norfolk Southern, Railway, of Locomotive Engineers, Trainmen, Association of American Railroads, CNBC, CSX, Union Pacific, AAR, ARA, Transportation Department Locations: States, United States, Palestine , Ohio, East Palestine , Ohio, U.S, East Palestine, Norfolk, Palestine, Ohio, Washington
(AP) — Transportation Secretary Pete Buttigieg has reiterated his concerns about railroad safety and scolded the industry for not doing more to improve since last year's fiery Ohio derailment. In a new letter to the freight railroads' main trade group, Buttigieg acknowledged that railroads say they are committed to safety. But he said too often regulators encounter resistance when trying to get the industry to do more to improve safety. And he said the Federal Railroad Administration's statistics don't show safety improving significantly over the past decade. But Buttigieg said that with two workers killed last year in rail yard accidents he's still concerned about those incidents.
Persons: Pete Buttigieg, Buttigieg, Ian Jefferies, ” Jefferies Organizations: , Federal Railroad, Association of American Railroads, Railroads, Union Pacific, AAR, BNSF, CSX, Canadian National, Norfolk Southern Locations: OMAHA, Neb, Ohio, Palestine , Ohio, U.S, Nebraska, Norfolk Southern, Norfolk, East Palestine
(AP) — The automatic braking system railroads were required to install several years ago needs improvement to better prevent collisions, federal safety investigators said in a report Wednesday. The National Transportation Safety Board has said more than 150 train crashes since 1969 could have been prevented by Positive Train Control. The agency had recommended the automatic braking system for years before it was mandated by Congress, which extended the original 2015 deadline twice and gave railroads until the end of 2020 to complete the system. The crash was likely caused by an overheating bearing and isn't one the automatic braking system is designed to prevent. The National Transportation Safety Board said there are several shortcomings of the current railroad braking system that developed partly because the system had to be designed so that every railroad's system would work on another railroad.
Persons: Jessica Kahanek, Federal Railroad Administration didn't, Jennifer Homendy, doesn't Organizations: National Transportation Safety, Federal Railroad Administration, Railroads, National Transportation, Train Control, Congress, of American Railroads, Railroad, Norfolk Southern, National Transportation Safety Board Locations: OMAHA, Neb, California, Norfolk, Ohio
Knowing which hazardous materials are on a train is key to helping firefighters decide how to respond and whether evacuations are needed. The railroads worked with emergency responders to develop the AskRail app in 2014 that firefighters could download to their phones or the computers mounted within their fire trucks. That move made the AskRail information available to about 2.3 million firefighters with hazardous materials training. Railroads are trying to ensure the information is available in multiple places to reduce the chances that firefighters will struggle to find out what is on a train after a derailment. If that effort succeeds across the Atlanta-based railroad's 22-state network in the East, the other major railroads could follow.
Persons: “ It’s, , Eric Brewer, “ We’re, Jessica Kahanek, Jose Mejia Organizations: , Norfolk Southern, Association of American Railroads, Railroads, Norfolk Locations: OMAHA, Neb, Norfolk, Ohio, East Palestine , Ohio, Pennsylvania, Beaver County , Pennsylvania, East Palestine, United States, Canada, Atlanta, Norfolk Southern, railyards
Many companies have complained about poor railroad service over the past couple years as the industry worked to recover from the depths of the pandemic. It, however, welcomed regulators establishing some clear minimum service standards for railroads that never existed before and requiring railroads to report more details about their performance. Getting the rule right is important because roughly 75% of refineries and petrochemical manufacturers are only served by a single railroad. Canadian regulators have long had similar rules that allow companies to hire other railroads to deliver their goods. The Canadian rules don't require companies to prove they are getting poor service like the proposed new U.S. rules.
Persons: Scott Jensen, Martin Oberman, ” Oberman, Rob Benedict, Benedict, Ian Jefferies, ” Jefferies, Jeremy Ferguson, ” Ferguson Organizations: — Companies, Surface Transportation, American Chemistry Council, Chemistry, American, and Petrochemical Manufacturers, Association of American Railroads, Transportation Division, International Association of, Rail, Transportation Workers Locations: OMAHA, Neb, U.S, North America, Canada, Mexico
Last week, total rail volume from Canada to the U.S. was down 12%, according to The Association of American Railroad's latest rail traffic report for the week ending July 22. This was an improvement given the first full week of the strike saw a 46% decrease in rail trade from Canada, and the second week suffered a 36% decrease. Rail traffic from Canada into the U.S. had a third-straight weekly drop as a result of the on-again, off-again strike at the West Coast Canadian ports. When the first strike ended on its thirteenth day, delays for rail containers were estimated at 39 to 66 days. Adding another day with the on-again, off-again strike last week, brings the congestion removal tally up to 42-70 days.
Persons: Port of Prince Rupert, Doug Macdonald, Rupert, Blaine Davidson, Terri Shimensky, Shimensky, Eric Byer, Byer, NACD Organizations: The Association of American, West Coast, Railway Association of Canada, CNBC, The Railway Association of Canada, Port, National Association of Chemical Distributors, CN, U.S ., Railroads, Canada, Association of American Railroads Locations: Canada, Port of Vancouver, Port of, Vancouver, Ohio, of Long, U.S . West Coast, U.S, Chicago, West
Photographer: Ben Nelms/Bloomberg via Getty ImagesThe supply chain is in turmoil again with International Longshore & Warehouse Union West Coast Canada members walking off the job after a key union caucus voted down a tentative deal that had temporarily ended the West Coast ports strike last week. Rob Ashton, president of the ILWU Canada, said in a statement that it did not believe the recommendations had the ability to protect union jobs. His group estimated that the first strike would cause an average 6-8 weeks of supply chain disruption before conditions would return to normal. The National Association of Chemical Distributors told CNBC some chemical companies are expected supply chain congestion until October as a result of the strike. Critical chemicals that go into food, cleaning, water purification, and personal care, among many others, flow through the West Coast ports of Canada and down to the United States.
Persons: Prince Rupert, of Prince Rupert in Prince, Trudeau, He's, Kinder Morgan, Ben Nelms, Rob Ashton, Seamus O'Reagan, " O'Regan, Steve Lamar, Lamar, Vancouver and Prince Rupert, Destine Ozuygur, Ozuygur, Eric Byer, Byer, HLS, Captain Adil Ashiq, Ashiq, Paul Brashier, BCMEA Organizations: Prince Rupert Grain Ltd, Canadian, Enbridge Inc, Kinder, Kinder Morgan Inc, Bloomberg, Getty, Warehouse Union, Coast Canada, British Columbia Maritime Employee Association, Canada's Labor, Canada's Transport, Canada Industrial Relations Board, Logistics, CNBC, American Apparel and Footwear Association, Railway Association of Canada, U.S, Port, HLS Shipping, Association of American Railroads, National Association of Chemical Distributors, Canadian National Railroad, Government, ., U.S ., ITS Logistics Locations: of, of Prince Rupert in Prince Rupert, British Columbia, Canada, Petroliam Nasional, West, British, Vancouver, U.S, Port of Vancouver, eeSea, United States, . West Coast, East Coast, China, U.S . West Coast, U.S . East Coast, North America, East, Asia
Year-over-year intermodal Canadian rail was down 46.2% last week as a result of the strike. Weekly rail trade data from the Association of American Railroads shows the devastating impact that Canadian West Coast ports strike is having on freight rail cargo entering the U.S. The U.S. and Canada have a historically strong trade relationship: Each country is the other's top trading partner. The Canadian Chamber of Commerce estimates $605 million in trade moves through one of those two ports daily. The International Longshoremen and Warehouse Union of Canada begin its strike on July 1.
Persons: Vancouver and Prince Rupert, Paul Brashier, Prince Rupert, Brashier, Eric Byer, Byer, Willie Adams, Sara Elena, Medea, Rob Ashton, Steve Lamar Organizations: AAR, Association of American Railroads, Railway Association of Canada, Canadian Chamber of Commerce, Warehouse Union of Canada, British Columbia Maritime Employers Association, ITS Logistics, ITS, U.S ., National Association of Chemical Distributors, Products, CNBC, Hyundai, CMA, Canadian Labor, Labor, Bank of Canada, American Apparel and Footwear Association Locations: West Coast, U.S, Canada, Vancouver, British, United States, U.S . West Coast, East Coast, Western Canada, Asia, Chicago, San Francisco
A decade ago, when he was sheriff, Mr. Rogers dispatched deputies to issue tickets to Norfolk Southern crews whose trains were impeding traffic. The tickets helped draw attention to blocked crossings, and the congestion decreased for a time. But the railroad sued the state, and Indiana’s Supreme Court overturned the law that authorized local officials to fine railroads for blocking crossings. Indiana and nearly 20 other states recently joined Ohio in asking the U.S. Supreme Court to determine that states can issues such regulations. Congress provided about $3 billion in 2021 to help fund projects that would alleviate congestion at frequently blocked railroad crossings.
Persons: Rogers, ” John Gray, Biden Organizations: Norfolk Southern, Association of American Railroads, “ Railroads, Indiana, Ohio, U.S, Supreme
LONDON, June 23 (Reuters) - Global trade remained in the doldrums during the second quarter as China’s post-lockdown rebound proved slower than expected and was offset by continued weakness in North America and Europe. Chartbook: Global container tradeChina’s freight movements have rebounded as the country emerged from lockdowns and the exit wave of the epidemic, though not as fast as anticipated at the start of the year. At Japan’s Narita airport, international air cargo was down 25% in the first five months of 2023 compared with a year ago. The most optimistic interpretation is that freight volumes have stabilised, after declining sharply in the second half of 2022, but there is no sign yet of a recovery outside China. Related columns:- Global freight cycle may have reached lowest point (May 25, 2023)- Global freight shows signs of bottoming out (April 27, 2023)- Global freight slump deepens at the start of 2023 (March 21, 2023)John Kemp is a Reuters market analyst.
Persons: John Kemp, Barbara Lewis Organizations: Global, of, European Union, Ministry of Transport, Traffic, Association of American Railroads, American Trucking Association, Thomson, Reuters Locations: North America, Europe, Netherlands, China, Asia, United States, Japan, United Kingdom, lockdowns, Singapore, East Asia, Los Angeles, Long Beach , Oakland, Houston, Charleston, Savannah, Virginia, Seattle, New York, U.S, Narita, Heathrow
The slowdown in International Longshore and Warehouse Union work at West Coast ports has created a congestion contagion that is spreading to the freight railroads, with uncertain consequences for the supply chain. The West Coast ports, including Los Angeles and Long Beach, had seen an uptick in recent activity as labor talks progressed, taking back some volume from East Coast ports which had gained amid the labor tensions over the past year. That port processes less railroad freight compared to the ports of Los Angeles and Long Beach, which have been open with only certain terminals targeted for shutdowns. Brashier said there is concern that inland port intermodal (IPI) freight will be hit next. "Without a concrete resolution in sight, a lack of reliable communication from either party and the ILWU actions, shippers should stay vigilant and close to the situation on the West Coast as the situation remains extremely fluid," he said.
Persons: Paul Brashier, Brashier Organizations: ITS Logistics, Port, Rail, Los, Pacific Maritime Association, The Association of American Railroads, shutdowns Locations: West Coast, Los Angeles, Long, East Coast, U.S, Port, Oakland
LONDON, April 27 (Reuters) - Global freight volumes fell at some of the fastest rates for three decades earlier this year, but at the end of the first quarter showed signs of bottoming out. Global freight has been hit by excess inventories held all along the supply chain as consumer and business spending has reverted from merchandise to services after the pandemic. But the most recent data, albeit only covering a small number of transport hubs, shows freight volumes may have stabilised or improved at the very end of the first quarter. Chartbook: Global freight volumesThe port of Singapore’s container throughput climbed to a record high of 3.34 million twenty-foot equivalent units (TEUs) in March. Related columns:- Hard-ish landing has already arrived for U.S. manufacturers (April 4, 2023)- Global freight slump deepens at the start of 2023 (March 21, 2023)John Kemp is a Reuters market analyst.
But manufacturers across the eurozone have reported business activity has been falling for nine months since June 2022 according to purchasing managers’ surveys. U.S. manufacturers have reported business activity has been falling for five months since November 2022 according to the Institute for Supply Management (ISM)’s purchasing survey. But the deficit had narrowed from 63 million barrels (-15% or -2.05 standard deviations) at the end of June 2022, according to data from Euroilstock. U.S. distillate fuel oil inventories were 18 million barrels (-14% or -1.08 standard deviations) below the prior 10-year seasonal average on March 31. In Singapore, distillate inventories have risen in 12 of the 15 most recent weeks by a total of 3 million barrels, according to data from Enterprise Singapore.
New York CNN —Norfolk Southern CEO Alan Shaw returns to Capitol Hill Wednesday facing pressure to support rail safety legislation proposed in the wake of his railroad’s massive toxic spill from a February 3 derailment in East Palestine, Ohio. “We support legislative efforts to enhance the safety of the freight rail industry,” was the only discussion of the legislation in his prepared remarks. Shaw said the railroad would support increasing fines and penalties for people found tampering with railroad facilities and safety equipment, without endorsing proposals for potential fines on railroads found guilty of safety violations. They said residents who live near freight rail tracks can’t depend on the railroad’s voluntary measures to improve safety. Vance said it is important to raise the maximum fine for rail safety violations from the current limit of $225,455.
WASHINGTON, March 9 (Reuters) - A group representing major U.S. railroads on Thursday warned carriers to stop using rail cars with loose wheels until those wheel sets can be replaced. The Association of American Railroads (AAR) said Norfolk Southern (NSC.N) had identified loose wheels on a series of cars that present an increased risk of an out of gage derailment. The National Transportation Safety Board (NTSB) said it was looking at the role of the loose wheels in recent derailments and praised the industry action. Norfolk Southern had 517 railcars in use with the wheels at issue, she added. Norfolk Southern did not immediately respond to a request for comment.
"Adding 1,000 more wayside detectors will create more work in the craft," said Michael Baldwin, president of the Brotherhood of Railroad Signalmen. There is no federal mandate for detectors, including the hot box detector, to be inspected. "Norfolk Southern has hired and trained more than 150 new signal employees, and we continue to hire. We are committed to the safety and integrity of our defect detectors," said Connor Spielmaker, Norfolk Southern spokesman. Total Class I freight rail employment in January 2023 was 119,245, up 6.7% (7,491 employees) over January 2022.
The rail safety legislation, introduced in Congress Wednesday with bipartisan support, would include a prohibition on single-person crews. There is no such existing law or federal regulation requiring both an engineer and a conductor to be on a train. The Association of American Railroads confirmed that its position in favor of one-person crews has not changed. “No data shows a two-person crew confined to a cab is safer, and train crew size should continue to be determined through collective bargaining,” a statement from UP. But it might have one or two provisions which are deal breakers for the unions, such as allowing single-person crews.
The company spent $3.4 billion on share repurchases last year, and $3.1 billion in 2021, bringing its recent share repurchases to $6.5 billion. Billions to shareholdersIn March 2022, Norfolk Southern (NSC) announced a new $10 billion share repurchase plan. Norfolk Southern did not respond to questions Wednesday on whether it expects to change its share repurchase plans in the wake of the derailment. Other freight railroads are also reporting improving profits, and have joined Norfolk Southern in massive share repurchases. Like Norfolk Southern, both UP and CSX spent more on share repurchases than they did on total employee compensation.
The derailment of the train, operated by Norfolk Southern (NSC.N), forced thousands of residents to evacuate while railroad crews drained and burned off chemicals. “We have mobilized a robust, multi-agency effort to support the people of East Palestine, Ohio," White House spokesperson Karine Jean-Pierre said at a briefing. [1/3] A view of a caution tape as members of the U.S. Environmental Protection Agency (EPA) (not pictured) inspect the site of a train derailment of hazardous material in East Palestine, Ohio, U.S., February 16, 2023. DeWine called on Congress to review railroad safety regulations, lamenting states have little power to demand information about what types of hazardous goods are rolling through their borders. Transportation Secretary Pete Buttigieg said Thursday more needs to be done to address rail safety in the face of hundreds of annual train derailments.
The derailment of the Norfolk Southern (NSC.N) operated train forced thousands of residents to evacuate while railroad crews drained and burned off chemicals. "This incident has understandably shaken this community to its core," Regan said at a press conference. Regan noted state and federal testing inside nearly 500 homes close to the derailment site shows that none of the toxic chemicals that were on the train are present in the air. He did urge residents who use private wells to continue using bottled water and to get their wells tested. [1/6] U.S. Environmental Protection Agency (EPA) Administrator Michael Regan speaks during a press conference after inspecting the site of a train derailment of hazardous material in East Palestine, Ohio, U.S., February 16, 2023.
Manufacturing output for the three months from November 2022 through January 2023 was almost 1.8% lower than in the three months between March and May 2022. Chartbook: U.S. manufacturing productionThe weakness of manufacturing production is consistent with business surveys which have showed activity falling every month since November. Since inflation was running faster than this, however, the volume of new orders had likely fallen in real terms by several percentage points. Related columns:- Labour hoarding exaggerates strength of U.S. job market (Reuters, February 6, 2023)- U.S. manufacturing is in recession (Reuters, February 1, 2023)- Recession now or later? Unenviable alternatives for 2023 (Reuters, January 26, 2023)- U.S. manufacturing has probably entered recession (Reuters, January 19, 2023)John Kemp is a Reuters market analyst.
But that doesn’t mean freight railroads are providing good service to their customers. Many of the problems tangling up the supply chain, driving up prices and slowing the economy can be traced to the steady decline in freight rail service in recent years. Some experts who represent rail customers who have complained about service in the past say service has gotten better since earlier this year. “The national freight rail network is broken, and the need for long-term rail reform is clear. Union Pacific (UNP), Norfolk Southern (NSC) and Berkshire Hathaway’s (BRKA) Burlington Northern Santa Fe all reported record earnings in 2021.
How an arcane 96-year-old law stopped the rail strike
  + stars: | 2022-12-02 | by ( Chris Isidore | ) edition.cnn.com   time to read: +9 min
The Railway Labor Act was passed in 1926 as one of the very first labor laws in the nation. Because of the law, the House was able to vote Wednesday to impose unpopular contracts on four rail unions whose members have already rejected the terms, followed by a vote by the Senate vote late Thursday that did the same. The Railway Labor Act, passed in 1926, is the reason Congress could intervene this week to block a strike by freight railroad unions. But under the Railway Labor Act, management can fall back on hopes that Congress will give them the deal it wants. When he served in the Senate, Biden voted against an earlier effort to impose a contract on the rail unions to keep them on the job.
Freight rail has the specific job of moving heavy, bulky goods and commodities, such as crude oil and coal, chemicals, large machinery, fabricated metals and many foodstuffs on which every American depends. Yet rail unions have been threatening a strike in the coming days because they are dissatisfied with a proposed labor contract. That’s why nearly 450 business groups this week told Congress that action to avert a freight rail strike was a matter of “grave urgency.” Washington is right to listen to them. But rail companies provide sick leave benefits based on post-contract talks between each company and its unions. Today, that’s freight rail service.
watch nowLeaders of the rail labor unions that have voted not to ratify the tentative labor deal tell CNBC that as the Senate moves closer to a vote on Thursday afternoon on legislation to prevent a rail strike, senators need to realize this is a humanitarian issue and their members will not forget who supported them. On Wednesday, the House passed the tentative rail labor agreement and additional legislation to add seven paid sick days, which has been one of the most important issues to rail workers in the breakdown of negotiations with freight rail companies. All three union presidents say they understand why President Biden had to push Congress to pass the tentative agreement. Biden's PEB deal 'missed the mark'Ferguson said the Presidential Emergency Board rail labor deal "missed a few marks and sidestepped a few, mainly our attendance policy issues." Supply chain congestion and rail embargoesThe unions argue that precision railroading and the lack of labor are the reasons behind congestion in the supply chain.
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