STB Issues Final Undercharge Ruling

The Surface Transportation Board issued its final ruling in a series of undercharge cases that had their roots in the economic deregulation of trucking in 1980 and once threatened to transfer $27 billion from the nation’s shippers into the estates of bankrupt motor carriers.

The final decision in a string of 1,075 cases was Shuford Mills v. Willig Freight Lines. STB ruled that Willig’s claim would create an “unreasonable practice” against the shipper, a textile manufacturer. A western truckload carrier, Willig filed for bankruptcy in a San Francisco federal court in October 1995.

The unanimous Jan. 18 decision by the three-member board ties the knot on a string of claims that emerged in trucking bankruptcy cases.

Before Congress deregulated trucking, the Interstate Commerce Commission regulated carrier-filed tariffs, which had to be applied and charged without discrimination among shippers. After deregulation, some common carriers discounted rates below their published tariffs for some shippers because of increased competition for the business. Still, many carriers could not operate in the new environment and went out of business.

For the full story, see the Jan. 29 print edition of Transport Topics. Subscribe today.