A regulatory determination by the STB removing a commodity, service, or transaction from economic regulation, typically allowing railroads to set rates freely without tariff filing requirements. Many bulk commodities, including intermodal traffic, are exempt from rate regulation. Exemptions were a key tool for implementing Staggers Act deregulation.
The independent U.S. federal agency responsible for the economic regulation of the nation's freight railroads, including jurisdiction over rates, mergers, acquisitions, line sales, and abandonments. The STB was created by the ICC Termination Act of 1995 as the successor to the Interstate Commerce Commission. It adjudicates shipper complaints about unreasonable rates and competitive access.
A publicly filed schedule of rates, rules, and regulations applicable to railroad transportation services. Tariffs are filed with and accessible through the STB and must be applied consistently to all shippers who qualify. Under the Staggers Act, railroads may supplement tariff rates with confidential contracts.
Landmark 1980 U.S. legislation that substantially deregulated the freight railroad industry, allowing railroads to negotiate confidential contract rates, abandon unprofitable lines, and set market-based prices. The Staggers Act is credited with revitalizing a financially troubled industry by giving railroads pricing flexibility. It preserved regulatory oversight for captive shippers through revenue adequacy and rate reasonableness standards.
A rate applicable to a specific commodity or group of commodities between defined origin and destination points, typically lower than the general freight rate. Commodity rates reflect the volume, regularity, and competitive characteristics of the traffic. They are published in commodity tariffs or established in contracts.