(Source: Freight Waves, May 28, 2022)
When a U.S. freight railroad engages with a rail shipper of bulk commodities to haul goods, the railroad must abide by terms expressed in federal code. That federal code is known as the common carrier obligation. According to the definition for common carrier obligation, “a rail carrier providing transportation or service subject to the jurisdiction of the [Surface Transportation Board] under this part shall provide the transportation or service on reasonable request.” In other words, the common carrier obligation binds railroads to transport any freight that has been properly tendered on reasonable terms and conditions, according to the Association of American Railroads.
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