For several years, shippers who are dissatisfied with classification decisions made by the National Classification Committee (NCC) classification panels have been able to appeal such decisions to the full NCC, provided they are a party of record. The NCC is a body of motor carriers that oversees freight classification descriptions and related rules. The classification panels, which rule on proposed changes, are composed of one-fourth of the NCC's membership.

On November 20, 2001, the Surface Transportation Board (STB) responded to a mandate from Congress that it determine whether the NCC's Section 5a agreement, which allows the group to collectively discuss and establish freight classification descriptions, classes, and related rules, should be renewed. On that date, the STB voted in "Section 5a Application No. 61 (Sub. No. 6), National Classification Committee–Agreement," to renew its approval of that agreement, subject to two principal conditions.

One of those conditions required the NCC to resolve each matter brought before it by a single decision, either by the NCC as a whole or by an NCC panel, and provide all parties with the right to seek an initial review by a neutral arbitrator—something that had never been allowed before. The board also stated that a party that is dissatisfied with the arbitrator's decision may challenge it through the STB, "with complainants bearing the burden of persuasion." There was, however, no specific provision in the decision for retaining the current complaint process, under which a party can bring the matter to the entire NCC for review and, if not resolved at that level, file a complaint or a petition for suspension with the STB.

On March 20, 2002, the NCC filed a revised bureau agreement with modifications that were intended to bring it into conformity with the STB's November 20, 2001, decision. Responses to that revised agreement, including suggested changes, were filed by five industry organizations and this writer.

In its latest decision, dated March 21, 2003, the STB by a vote of 2 to 0 adopted the revised NCC Section 5a agreement, including the provision that provides dissatisfied parties with the right to appeal a decision through review by a neutral arbitrator. The board also agreed to adopt this writer's suggestion that the current dispute-resolution process be retained, and parties be allowed to choose one of those two methods for addressing their complaints.

The board's decision went on to say:

"We will adopt the option proposed by Bohman. Neither the NCC nor the Shipper Groups have objected to it. Because parties that are dissatisfied with an NCC decision are not required to pursue arbitration, nothing would be gained by refusing them the option of choosing present procedures, under which decisions of panels may be appealed to the full NCC and thereafter taken to the Board via petition for suspension or complaint. The NCC must provide, however, that if there are multiple dissatisfied parties other than the NCC, this option cannot be exercised unless all dissatisfied parties agree."

Once the NCC modifies its Section 5a agreement to meet this and other conditions in the STB's recent decision, shippers that are dissatisfied with NCC panel decisions will for the first time have the choice of filing an appeal to the full NCC or requesting a review by an impartial arbitrator. The final rule is expected to be in place sometime this fall.