While congress substantially deregulated interstate for-hire trucking service with the passage of the ICC Termination Act of 1980 and subsequent legislation implemented by the Surface Transportation Board (STB), some regulation continues to this day. But all that could be coming to an end in the not too distant future if the STB has its way.

On May 4, 2007, the STB, successor to the former Interstate Commerce Commission, voted unanimously to: terminate the approved agreements of all 12 motor carrier bureaus to engage in rate-related collective activities; dismiss applications by five regional bureaus that sought authority to operate nationwide; and terminate approval of the agreement of the National Classification Committee (NCC)—also considered a motor carrier bureau—thus stripping it of its Section 5a antitrust immunity.

For rate bureaus, this decision would bar them from collectively deciding on general rate increases and rate restructurings. As for the NCC, it would mean its members could no longer collectively establish or revise classification descriptions, ratings (classes), shipping rules, or packaging specifications in the National Motor Freight Classification (NMFC).

In this situation, the NMFC couldn’t remain up-to-date. Some other method of pricing, such as cube-based, might take its place and carriers would have to implement any changes on their own. Right now, nobody knows what the future holds.

In its decision in Ex Parte No. 656, “Motor Carrier Bureaus–Periodic Review Proceeding,” served on May 7, 2007, the STB said, “It is not our interest to discourage the classification process…We recognize that there are significant benefits associated with having a classification system.”

In a letter to interested shippers and carriers dated May 10, William W. Pugh, executive director and general counsel of the National Motor Freight Traffic Association (NMFTA), which owns and publishes the NMFC, said “It is important to you to know that the decision, if allowed to stand, would affect how the NMFC is maintained, but not the NMFC itself. Nor was it intended to.”

Pugh went on to say that “the STB’s decision would not, and does not, alter the statutory requirement that carriers that use or refer to the provisions of the NMFC must participate in the NMFC.”

As one would expect, the STB’s decision is not going to remain unchallenged. Both the NMFTA and the NCC have already filed a pleading with the STB requesting that the September 4, 2007 effective date of the decision be extended for 18 months to November 4, 2008.

We expect other rate bureaus to follow suit. And even if such extensions are not approved by the STB, you can bet they’ll appeal the decision to the federal courts. There’s a strong likelihood that a firm and final decision is still months away.

In the meantime, because the September 4 effective date is still a few months away, all of the motor carrier bureaus are expected to continue their normal activities.

For the complete text of this 37-page decision, check out the STB’s website. The decision can be found under Docket Number EP 656 0, dated May 7, 2007.