'The STB has made these latest proposed changes to the small shipment rate case process because their current process, as various chairs of the STB have testified before Congress, is completely unworkable,' said Bob Szabo, executive director of Consumers United for Rail Equity (CURE), a group representing rail customers, said in a statement. 'The current process is too costly, too time consuming and too complex to provide any relief for rail customers. Unfortunately, these proposed changes may be the worst proposals yet for making the small shipment rate case process accessible for rail customers without access to competition.'
An October 2006 report by the General Accountability Office highlighted the problem when it said the process is 'largely inaccessible and rarely used.' In fact, the GAO found that since the rules were passed in 1997, the STB has not had a rate challenge case go through the process (https://www.gao.gov/new.items/d0794.pdf).
In a hearing Wednesday the STB heard customers explain that while the intent of the rules was to simplify the process of filing small rate cases against the nation's railroads, it would make the process worse, creating more barriers and further discouraging new cases from being filed, CURE said.
'Instead of clarifying and simplifying existing rules, the STB has created an entirely new set of rules that have the perverse — and we hope unintended — effect of making matters worse for rail customers,' said Steve Sharp of Arkansas Electric Cooperative Corp. a rail customer and member of CURE who testified at the hearing. 'The very fact that the railroads support these new rules, while rail customers are united in opposition should be evidence enough that once again the STB has failed to propose a rule that will protect rail customers from railroad monopoly power.'
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now