STB Partially Upholds Railroad's Haz-Mat Routing Decision

In a decision issued February 8, 2012, the Surface Transportation Board, approved the BNSF's decision to interchange Vancouver-originated chlorine cars in Portland,OR to another RR, when BSNF had previously carried chlorine shipments to Kansas City for interchange to another carrier. The Board in the same decision, overruled BNSF's decision to interchange chlorine cars originating in Marshall, WA in Spokane, WA, and required it to continue to provide a route from Marshall, WA to Kansas City.

The case (Canexus Chemicals Canada, L.P. v. BNSF Railway Co. - STB Rate Docket 42131) was initiated by the Shipper, Canexus, seeking a ruling that BNSF maintain its prior routing (i.e. interchange at Kansas City).

Though not specifically addressed by the Board in the decision, Canexus had alleged that BNSF's proposed routing changes were intended to reduce liablility for potential accidents for TIH (Toxic by Inhalation) shipments, such as chlorine. If that was the railroad's motivation behind the route changes, requiring it to transport chorline cars for much shorter distances, it represents another another skirmish in the TIH debate. See my earlier post about attempts by railroad's to include indemnity provisions in their published tariffs for haz-mat shipments, here.

In the Canexus case, the Board found it reasonable for BNSF to interchange its Vancouver-originated traffic at Portland, but not the Marshall, WA traffic at Spokane, largely on the basis the existence of current interchage points, and the directness of the new routes.

Also of significance is the Board's decision that BNSF did not violate its Common Carrier obligation to provide written rates to a shipper requesting them, and then to provide service based on those rates upon reasonable request. The Board also reiterated the policy that originating carrier's routing choices are generally given preference.

It will be interesting to see of this decision encourages carriers to examine their routes for potential interchanges that reduce the miles an originating carrier hauls TIH materials.