Chemical Industry Critical of CSX Service

A chemical industry trade group told the U.S. Surface Transportation Board last week that its members continue to experience significant service disruptions on CSX.

In a letter to the STB, Cal Dooley, CEO of the American Chemistry Council, said that companies have in the past two months been forced to curtail production or divert shipments to truck in order to prevent shutdowns.

“While many companies report that service had improved since the summer/fall of last year, it is clear that service is still not where it needs to be,” Dooley wrote.

The letter to the STB was based on a survey the trade group conducted of its members in December and January.

Dooley said that some members have seen improvements since last summer but overall service has not returned to normal.

“While CSX’s January 13 letter to the Board notes ‘a remarkable rate of positive change’ and cites selected service metrics that exceed 2016 levels, few benefits of CSX’s operational changes have actually been realized by its customers,” Dooley wrote. “In fact, the vast majority of ACC member responses indicate that current CSX service is worse than it was prior to the implementation of precision railroading.”

Dooley said that many of his group’s members fear that paying more for less reflects a “new normal” for CSX service.

Examples of shoddy service cited in the letter included a Midwest plant reducing production  by 90 percent due to erratic deliveries of raw material.

Another company said it shifted to trucks to prevent plant shutdowns in the Northeast due to a bad weather and CSX delays.

A Southeastern company said local switching delays and route changes have increased transit times by four or five days.

In a related vein, a Northeast shipper said a shipment that normally takes 10 days took 55 days due to multiple delays on CSX.

Another shipper said loaded cars have sat in yards for a week or more while some said they have seen reduced local service and higher car demurrage and switching fees.

CSX has been arguing for the past year that once it works out its operating changes that shippers will benefit from faster and more reliable service.

In response to the chemical association letter, CSX said in a statement that it “consistently strives to meet customer expectations and we believe that concerns about our service can best be resolved on a customer-by-customer basis and by focusing on a customer’s individual needs.”

The statement also restated a report that railroad made to the STB recently that cited five consecutive months of improvement in train velocity and dwell time.

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