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Rate bureaus seek extension for STB's antitrust decision

Ray Bohman -- Logistics Management, 7/1/2007

In last month's column, I reported that on May 7, the Surface Transportation Board (STB) served a major decision in STB Ex Parte No. 656, “Motor Carrier Bureaus–Periodic Review Proceeding.”

In that decision, scheduled to take effect on September 4, 2007, the STB terminated its approval of motor carrier bureaus to engage in rate-related collective activities. In other words, the decision revokes Section 5a anti-trust immunity agreements of 12 rate bureaus, including the National Classification Committee (NCC) that has operated under it for many years.

Since that time, the NCC and several other rate bureaus such as the Middlewest Motor Freight Bureaus, Pacific Inland Tariff Bureau, Southern Motor Carriers Rate Conference, and the Household Goods Carriers' Bureau Committee, have filed petitions with the STB requesting an extension of the September 4, 2007, effective date to November 4, 2008, saying that they need more than 120 days to make adjustments necessary for the new environment.

As two regional rate bureaus said in their joint petition, the STB's ruling will “dismantle the existing tariff system and require the establishment of a completely new tariff structure for the motor carrier industry”—and that they cannot complete that task in 120 days.

NASSTRAC, a shipper group, is replying to each bureau's request for an extension. It alleges that any extension beyond the scheduled September 4 date would be “contrary to the public interest and is completely unwarranted.” NASSTRAC says the bureaus “have not claimed or established that they would be irreparably harmed absent the requested extension and they have the ability to operate even after September 4 as long as they avoid activities that expose them or their members to antitrust liability.”

The shipper group said that if the STB were to grant the bureaus' extension requests they could continue for more than a year to engage in collective rate-making and other activities that, but for immunity, could be illegal and detrimental to the interests of shippers and the public.

While all of the bureaus have requested “expedited action” on their petitions for an extension, at this writing there has been no response from the STB. Should these requests for extensions be denied, I believe all bureaus involved will bring suit in a federal court, likely forcing a delay.

For the complete decision, go to the STB's website, www.stb.dot.gov. The decision can be found under Docket Number EP 656 0, dated May 7, 2007.


Author Information
Ray Bohman, a well-known consultant and author, is editor of several highly successful newsletters on transportation and is a consultant to a number of national trade associations. He is president of The Bohman Group, consultants and publishers in the freight-transportation field. His offices are located at 27 Bay Lane, Chatham, MA 02633. Phone: (508) 945-2272.

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