The Surface Transportation Board (STB), which is a federal, bipartisan, independent adjudicatory board of the United States, recently released the much-awaited freight rules. The new Final Offer Rate Review (FORR) and the Voluntary Arbitration Program are expected to help shippers and carriers efficiently and quickly resolve the small rail rate cases that have been pending for a long time. It is in sync with the recommendations of the STB’s Rate Reform Task Force, which has been working towards making the procedures more accessible and workable for all the shippers and carriers on board.
Dr. Kimberly Wise White, the American Chemistry Council’s Vice President of Regulatory and Scientific Affairs, said, “These new procedures are an important move in the right direction that will provide the STB, railroads, and shippers with a speedier option for resolving small rate cases in the absence of effective market competition.” Moreover, he added, “Instead of lingering on for years, rate cases can be resolved in a matter of months. Adopting these new rules helps the Board fulfil its Congressional mandate to ensure reasonable rates for shippers that lack competitive transportation options.”
When asked about the robustness and effectiveness of the policy released, White said, “There’s still plenty of work to do to bring US freight rail policies up to speed.” “We strongly encourage the board to adopt additional, long overdue reforms that will help head off future problems and provide shippers with better access to competitive and reliable rail service.”
