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26 Jan 2017

Rail Tidbits for 2017

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In accordance with the Climate Leadership Act of 2016 and effective January 1, the Canadian Pacific will apply an AB Carbon Levy Surcharge, either per mile or per container (CP 9800). Also adding carbon surcharges is the Canadian National Railway. Effective in April, a tax will apply to shipments traveling to, from or within Alberta. The British Columbia tax will change to a per mile rate, with the exception of intermodal, which will remain per unit rates. The CN has also decided on several changes that will become effective February 1 and will affect shippers’ freight payables. These changes are applicable to CN tariffs 9000, 9002, 9003, 9004 and 9100.

Kansas City Southern de Mexico has announced that beginning in 2017, the Mexican Energy Regulatory Commission has deregulated fuel prices. There are expected to be increases in the average price of diesel fuel, as well as changes to how shippers can view the reduction on rate discount program.

The new year brings new challenges and opportunities for the rail freight community, as it remains unclear what new policies might result from the new presidential administration. Meanwhile, the Surface Transportation Board continues to preside over the debate of reciprocal switching. Looking to the future, Positive Train Control—technology designed to remotely stop train derailments and deadly accidents—is on track for full implementation by the December 2018 deadline.

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