STB Questions The Quality of AAR's RCAF Filings

On November 26, 2024, Surface Transportation Board (STB) Chairman Robert Primus sent a letter to the Association of American Railroads (AAR) expressing concern over recent problems with the AAR’s rail cost adjustment factor (RCAF) filings. Over the past two years, the AAR has refiled four quarterly RCAF filings due to errors.

Chairman Primus emphasized that the frequency of errors in these filings is unacceptable and undermines confidence in the RCAF’s accuracy, and has asked the AAR to provide a detailed description of the quality controls in place for reviewing and calculating the RCAF.

The RCAF is an index published quarterly by the AAR which reflects the changes in costs experienced by the railroad industry. The RCAF is often used as an adjustment mechanism in railroad contract rates between railroads and shippers.

Read the STB's letter here.