US Freight Rail: Reliable Rail Service Act, Supply Chain Boost

Reliable Rail Service Act Reintroduced to Address Freight Rail Woes and Boost U.S. Supply Chains

Amidst growing concerns about the reliability and cost-effectiveness of freight rail service across the United States, U.S. Senators Tammy Baldwin (D-WI) and Roger Marshall (R-KS) have reintroduced the Reliable Rail Service Act on June 18, 2025. This bipartisan bill, designed to address the challenges faced by farmers, manufacturers, and small businesses, aims to ensure dependable freight rail service at reasonable rates. The legislation, which directly impacts states like Wisconsin and Kansas, addresses the “who” (Senators Baldwin and Marshall), “what” (the reintroduction of the Reliable Rail Service Act), “when” (June 18, 2025), “where” (across the US, with particular impact on WI and KS), “why” (to combat unreliable service and high costs), and “how” (by clarifying the common carrier obligation and empowering the Surface Transportation Board, or STB). The central focus of the article is to delve into the key provisions of this legislation and its potential impact on the freight rail industry and the broader US economy.

Addressing the Common Carrier Obligation

A core tenet of the Reliable Rail Service Act revolves around clarifying the common carrier obligation, a legal requirement under which railroads are mandated to serve the wider shipping public “on reasonable request.” The act seeks to clarify the ambiguity surrounding this obligation, which has, in some instances, resulted in inadequate service and escalating costs for shippers. The legislation empowers the STB by establishing clear criteria for evaluating whether rail carriers are meeting their common carrier duties. This provision is especially crucial in an environment of industry consolidation and practices that can restrict rail network capacity. By offering greater clarity and certainty, the act aims to establish a more balanced relationship between carriers and shippers, thereby promoting fairer and more reliable service across the freight rail network.

Impact on Shippers and Supply Chains

The reintroduction of the Reliable Rail Service Act has garnered strong support from various industry stakeholders, including agricultural groups, manufacturing associations, and logistics providers. Supporters, such as the International Dairy Foods Association (IDFA) and the American Chemistry Council, have emphasized the critical need for more dependable rail service, which impacts everything from the timely delivery of dairy products to the smooth operation of chemical manufacturing. The bill’s proponents argue that improved service will not only benefit individual businesses but also contribute to strengthening U.S. supply chains, ultimately lowering costs for consumers. Furthermore, the act is seen as a means to level the playing field, preventing what are perceived as unfair advantages for the largest railroads, and enabling smaller businesses to effectively access rail transport for their products.

Strengthening STB Oversight and Enforcement

Another key component of the Reliable Rail Service Act is the reinforcement of the STB’s oversight and enforcement capabilities. By providing the STB with clearer authority and tools, the legislation aims to enable the agency to hold rail carriers accountable for their service performance. This includes setting and enforcing meaningful service standards. The ability of the STB to address disruptions, enforce obligations, and support the needs of third-party logistics (3PL) warehouses is expected to be critical in ensuring consistent, fair, and timely service for rail users. This also allows STB to better support the 3PL warehouses that keep America’s supply chain moving.

Industry Stakeholder Reactions and Perspectives

The bill’s reintroduction has elicited positive responses from a diverse range of industry stakeholders. Various trade groups, including the International Warehouse Logistics Association (IWLA), the Transportation Trades Department, AFL-CIO, and the National Grain and Feed Association (NGFA), have voiced strong support for the legislation. These organizations acknowledge the urgent need to address persistent freight rail service failures, and they have highlighted the importance of holding railroads accountable and providing equal, timely, and affordable service to all customers. The Wisconsin Farm Bureau Federation, among others, sees this increased authority as an avenue towards greater efficiency in the rail industry, benefiting its members and the agricultural sector.

Conclusion

The reintroduction of the Reliable Rail Service Act represents a significant effort to address the critical challenges facing the U.S. freight rail system. The bill’s emphasis on clarifying the common carrier obligation, strengthening STB oversight, and ensuring reasonable rates has the potential to bring substantial benefits to farmers, manufacturers, and consumers across the nation. The legislation aims to foster improved service reliability, lower shipping costs, and bolster overall U.S. supply chain resilience. The broad-based support from industry stakeholders underscores the perceived importance of this initiative. The long-term implications of the Reliable Rail Service Act are likely to be far-reaching. If enacted, the bill could serve as a catalyst for increased competition, improved rail service quality, and more stable and predictable transportation costs. This bill is a much-needed reform that is crucial to bringing jobs back, leading global trade, and making more in America, not China. The ability of the bill’s proponents to navigate the legislative process and achieve bipartisan consensus will ultimately determine its effectiveness and shape the future of freight rail in the United States.