Dive Brief:

• The Surface Transportation Board recently released an independent study considering improvements to the rate regulations for freight transport. 
• The board commissioned InterVISTAS Consulting firm to see if there were other methodologies that may simplify the process used for assessing rates. The 181-page report finds the current system is effective, but outdated, complex and discourages rate complaints by shippers, Railway Age reports.
• The president of the Association of American Railroads (AAR) says the study confirms that the current process is "cost effective" and changes would not benefit the larger transportation system.

Dive Insight:

The Surface Transportation Board will host a conference in October to discuss potential changes to the regulation as the agency seeks to update its methodology for determining stand-alone cost reasonableness.

At the heart of the issue is the changed freight industry, which has seen national rail carriers consolidate to less than ten lines and a current slump in freight transport. Combined, these two factors would lead to increased freight prices and the STB is looking to create a methodology that spots "unfair" practices.

Naturally, the AAR would prefer no change to the system, and the report backs their point that the current system, if flawed, works well. However, the report also acknowledges full blown stand alone cost tests — the method for testing route efficiency during a dispute — do not merit the expense of running them.