In a new op-ed in The Hill, AAR President and CEO Ian Jefferies discusses how increased distrust in market outcomes, general anti-coroprate sentiment and a select group of powerful shippers may sway the U.S. Surface Transportation Board (STB) to institute widespread price caps.
“Yet there is a concern the STB might be moved by the swell of activist policymaking, perhaps nudged by a select group of powerful shippers seeking to take advantage,” Jefferies writes. “The concern is that they could — due directly to corporate rent seeking — turn today’s earnings floor into tomorrow’s ceiling, using annual determinations of a railroad’s financial health to cap rates, regardless of market conditions. In other words, the STB could opt to firmly fix what a railroad can charge customers — hearkening back to Interstate Commerce Commission ratemaking that once decimated the sector.”
Every ton of freight moved by rail strengthens the economy, creates jobs, mitigates pollution and saves taxpayer money. Contact your members of Congress and ask them to keep the STB from going too far.