The International Warehouse Logistics Association (IWLA), which represents third-party logistics (3PL) warehouse operators across North America, welcomed last week’s Surface Transportation Board notice of proposed rulemaking to repeal outdated regulatory limits on reciprocal switching (49 C.F.R. part 1144). The proposal would restore the Board’s ability to consider competitive access remedies on a case-by-case basis — a step IWLA believes could help address long-standing rail-service challenges facing 3PL warehouses and other shippers.
“For many warehouses, a lack of meaningful rail competition contributes to unreliable service and rising costs,” says IWLA President & CEO Jay Strother. “The STB’s proposal takes a measured, statutory approach that would give the Board greater flexibility to promote competition where it is warranted. More competitive options can lead to better service, fewer disruptions, and stronger supply chains for the businesses and customers we serve.”
IWLA has long emphasized the importance of competition and effective oversight in the freight rail sector. The association views the proposed repeal as a constructive step toward restoring balance in rail markets by removing regulatory barriers that have, in practice, prevented shippers from obtaining relief. At the same time, IWLA continues to have serious concerns about increasing consolidation within the rail industry. While last week’s NPRM seeks to promote competition and improve service, the proposed Union Pacific-Norfolk Southern merger raises significant questions for rail shippers about reduced competition, service reliability, and resiliency across the national freight network.
“IWLA strongly supports policies that enhance competition and accountability in rail service,” Strother adds. “That principle must apply consistently — both in regulatory decisions that expand access to competitive rail options and in the careful scrutiny of mergers that could further concentrate market power.”
IWLA plans to submit formal comments on the NPRM and will continue working with the STB, Congress, rail carriers, and shipper stakeholders to advance policies that ensure safe, reliable, and competitive rail service for 3PL warehouses and the broader supply chain.
Click here to access a copy of the press release from IWLA.
# # #
Note: Photos and logos are available on request. For more information, please send your requests to blinderman@IWLA.com or call 847.813.4698.
About IWLA: Founded in 1891, the International Warehouse Logistics Association is been the resource for warehouse logistics, advocacy, and education. For more information, visit www.IWLA.com. IWLA, formerly the American Warehouse Association, serves nearly 600 corporate members representing more than 3,000 warehousing locations. IWLA members are integral to the global supply chain, providing expertise in storage, distribution, transportation, and logistics management. IWLA advocates for fair working conditions, secure supply chains, and efficient trade practices to benefit both the logistics industry and consumers.