Logistics
August 20, 2026
AAR agrees to rescind new railcar rule
Written by Stephen Miller
The Association of American Railroads (AAR) has agreed to rescind the Open Top Loading Rule (OTLR), according to a notice issued by the Recycled Material Association (ReMA).
The rule required loose recycled material not to be plied above the top edge of the railcar, mainly gondolas. The rationale for the rule was the material can shift, affecting stability, or material can fall off the car during transit.
Many shippers of recycled metals objected to this rule. They claimed it would decrease the usable railcar capacity by 12-18%, thereby spiking transportation costs and disrupting the supply of scrap metals to US manufacturers. Several ferrous grades including shredded, busheling, HMS, and turnings would be affected by this new limitation.
ReMA allied with the Steel Manufacturers Association (SMA) to lobby against the new rule. Their efforts were successful as ReMA has reported the AAR has agreed to rescission.
In addition to the agreed rescission, AAR will include ReMA representatives on a newly established Technical Advisory Group, which will be tasked to review and update the existing rules by January 2027, according to the notice.
The ReMA release also stated, “This is an important and successful outcome for our industry and a strong example of what coordinated member engagement, industry partnership, and ReMA advocacy can accomplish.”
