An arrangement under which two or more competing railroads agree to switch each other's cars to and from industries served exclusively by the other, enabling shippers on one railroad to access the other's main line at a published switching charge. Reciprocal switching is a form of competitive access and is sometimes mandated by the STB. It is particularly important for shippers on short lines or in terminal areas.
The ability of a shipper to use more than one railroad for a given movement, either through reciprocal switching, trackage rights, or geographic proximity to competing lines. Competitive access is a key factor in rate negotiations and is central to rail regulatory policy. Shippers with competitive access generally obtain lower rates than captive shippers.
A fee assessed by a railroad for the local movement of cars within a terminal, between an interchange point and a customer facility, or for reciprocal switching. Switching charges cover the cost of locomotive power, crew, and track used in the switch move. They are published in tariffs and may be assessed in addition to the linehaul rate.
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 routing situation where a shipper must use a particular railroad for some portion of a movement because no competitive alternative exists for that segment, giving that railroad pricing leverage. The bottleneck carrier can set rates for the captive segment independently of competitive pressures. STB rules allow bottleneck shippers to challenge rates through rate cases.