STB Extends Rate Bureau Authority

WASHINGTON — The Surface Transportation Board extended for one year the authority of motor carrier rate bureaus to set rates and the National Classification Committee to establish commodity classes for freight moving by truck.

The decision preserves antitrust immunity for rate bureaus and classification activities until Dec. 31, 1999.

Beyond that date, however, barring any congressional action, the board said it would approve rate bureau agreements only if “benchmark” rates are reduced to reflect market price levels.

That could put an end to the widespread practice of offering discounts of 50% to 60% from published tariffs.

Individual carriers could still post “unrealistically high list prices” if they want to, but they could not do so in concert with other carriers.

“If bureaus want to retain their immunity,” the board said, “their class rates should be reduced to market-based levels.”

The board also suggested that shippers and other “users” be given a greater voice in the freight classification process.

In reviewing public comments on the classification issue, the Board said it found “concern” over the way in which the NCC operates, but concluded the system “can produce public benefits.”

“The classification system should produce efficiencies for motor carriers that should be passed on to their customers,” the Board said. “All things considered, as long as classification is effected in a rational way that gives an adequate voice to the users of the system, we would not find it contrary to the public interest.”

For the full story, see the Dec. 28 print edition of Transport Topics. Subscribe today.