ACD Press Release

Arlington, VA – Today, National Association of Chemical Distributors (NACD) member company Univar Solutions testified before the Surface Transportation Board (STB) on the increased use of embargoes by freight rail companies. This hearing comes after Union Pacific dramatically increased the use of embargoes from five in 2017 to more than 1,000 in 2022, according to STB data.

During his testimony, Univar Solutions Vice President of Transportation Robert McRae underscored the consequences of these embargoes and highlighted railroads’ continued efforts to place their profits over the interests of the American public.

“The railroads need to address the underlying issues of their deteriorating product and not habitually reach for the embargo lever,” McRae testified. “The effects of embargoes are far reaching, impacting not only the railroad itself, but all its stakeholders, including shippers and the other railroads, too. That domino effect paralyzes everyone.”

McRae concluded his testimony by stating, “Without better collaboration and communication, without transparent acknowledgement of these realities, without acting in the next few weeks, and without an equal bargaining position, Mr. Chairman, and board members, we will all be right back here in a few months talking about these very same issues, their impacts, and what we should do about them.”

The chemical industry is one of the largest customers of freight rail in both volume and revenue, and many NACD members rely heavily on rail to ensure the timely shipment of products used in nearly every industry in the U.S. Unfortunately, railroads’ use of precision scheduled railroading (PSR) in recent years has led to a significant decline in service and an insufficient workforce.

“It’s no secret rail service has been inadequate and unreliable for years,” said NACD President and CEO Eric R. Byer. “It’s unacceptable that rail companies continue to use a system that causes nationwide service disruptions and leads to dwindling numbers of rail workers, particularly amid ongoing supply chain challenges. NACD applauds the STB for intervening and attempting to hold these companies accountable to these unfair business models. We also commend Rob, and the rest of the Univar Solutions team, for serving as a voice to the freight rail shippers impacted daily by these practices.”   

To read Robert McRae’s full testimony before the STB, click here.

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NACD and its over 400 member and Affiliate companies are vital to the chemical supply chain providing products to over 750,000 end users. NACD members are leaders in health, safety, security, and environmental performance through implementation of Responsible Distribution, established in 1991 as a condition of membership and a third party-verified management practice. For more information on NACD, visit www.nacd.com.