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| Recyclable metal |
The Association of American Railroads has published revised open-top loading rules that spark significant pushback from the recycling industry. ReMA expresses deep concern over the new guidelines, which expand strict clearance and covering requirements from light scrap to all forms of loose recyclable metal. Consequently, these regulatory updates threaten to disrupt transportation efficiency for scrap metal across North America.
The updated AAR requirements mandate a 12-inch loading clearance or wire-mesh netting for all loose recycled metal shipments in gondola railcars. ReMA estimates that these mandates will reduce usable railcar capacity by 12 to 18 percent for shippers unable to utilize netting or baled material. As a result, the industry faces severe logistical bottlenecks, an increased number of required railcars, and escalating freight costs.
ScrapInsight Commentary
The new AAR railcar rules introduce operational headwinds that could constrain the scrap metal supply chain across North America. If implemented without modification, higher transportation costs may redirect recyclable metal flows and impact domestic mill procurement strategies.
