Rail shippers lose a way to challenge unfair shipping rates
What happened
The US Surface Transportation Board has removed a rule that allowed shippers to challenge high rail rates. This means that smaller companies that rely on railroads will have fewer options to dispute what they pay.
Why it matters
The rule was designed to give smaller companies a faster, cheaper way to dispute what they considered unfair shipping rates from large railroads. Without it, these companies must use a more expensive and time-consuming process. This effectively makes it harder for them to challenge the pricing power of major rail carriers.
The signal
Watch for an increase in formal rate complaints filed through the more complex process, or a decrease in complaints overall, suggesting shippers are simply absorbing higher costs.