Rail options still on hold

Despite recent actions taken by the National Industrial Transportation League (NITL) to address an onerous situation, “captive shippers” will continue to pay a monopoly tax on their rail shipments

By ·

Despite recent actions taken by the National Industrial Transportation League (NITL) to address an onerous situation, “captive shippers” will continue to pay a monopoly tax on their rail shipments.

NITL President Bruce Carlton has rightfully objected to foot-dragging done by the U.S. Surface Transportation Board (STB) when it comes to addressing the issue of making competitive switching rules between the Class 1 railroads.

Late last week, the STB announced its decision to defer consideration of the League’s Petition for Rulemaking to Adopt Revised Competitive Switching Rules, until the Board completes its review of the lengthy record developed in the separate and broader Ex Parte 705 proceeding on rail competition.

Manufacturers who may have planned to add to their workforces or invest in other assets now have less incentive to do so, since they remain uncertain about the regulatory climate for some time to come.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

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Article Topics

Logistics · Rail · Rail Freight · All Topics
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