WASHINGTON (Jan. 7, 2025) – The Surface Transportation Board (STB) released a proposed rule to repeal regulatory restrictions on accessing competitive freight rail service, including through reciprocal switching.
“This proposal would embrace market forces, enable meaningful choice for American businesses as provided under the statutes, and eliminate regulatory barriers unnecessarily stifling rail competition,” said STB Chairman Patrick J. Fuchs. “By proposing to remove these regulations, the Board would return to the text of statutes that advance excellence, entrepreneurship, and innovation to support economic growth and supply chain resilience.”
Last year the American Chemistry Council (ACC) submitted comments to Department of Justice’s Anticompetitive Regulations Task Force (Task Force) recommending that the STB’s restrictions on reciprocal switching should be eliminated to comport with President Trump’s Executive Order 14267, Reducing Anti-Competitive Regulatory Barriers.
The following statement regarding the proposed rule can be attributed to the ACC:
“ACC welcomes the Surface Transportation Board’s (STB) proposed rule to unlock competitive freight rail service by eliminating regulatory restrictions that limit options for freight rail shippers. This commonsense, pro-competition action aligns squarely with President Trump’s economic and deregulatory agenda by unleashing market forces to help put freight rail back to work for U.S. manufacturers, farmers, and energy producers.
“By eliminating outdated rules that impose an unreasonably high burden on shippers, the Board will carry out Congress’s clear directive to allow reciprocal switching when it is needed to ensure freight rail competition. Reciprocal switching gives shippers captive to a single railroad access to a second carrier at a nearby interchange, providing access to competitive service options. Under the current framework, no rail customer has ever successfully obtained reciprocal switching – a clear sign that current restrictions have failed. The new proposal would allow shippers to seek competitive access through a case specific review by the STB.
“Lifting these anticompetitive restrictions is critical to countering the negative effects of massive consolidation within the rail industry, which has chased competition off the rails, driven inflation-adjusted rail rates up more than 40 percent over the past two decades and contributed to chronic service failures.
“The STB’s regulatory rollback will help the Trump Administration achieve its goals of onshoring manufacturing, achieving energy dominance, strengthening U.S. agriculture, and ensuring American-made goods can move efficiently to market.
“America needs more freight rail competition. While the proposed Union Pacific–Norfolk Southern merger threatens to expand monopoly power, today’s proposal moves freight rail in the right direction. ACC stands ready to work with the STB to help America’s freight rail network reach its full potential.”
American Chemistry Council
The American Chemistry Council’s mission is to advocate for the people, policy, and products of chemistry that make the United States the global leader in innovation and manufacturing. To achieve this, we: Champion science-based policy solutions across all levels of government; Drive continuous performance improvement to protect employees and communities through Responsible Care®; Foster the development of sustainability practices throughout ACC member companies; and Communicate authentically with communities about challenges and solutions for a safer, healthier and more sustainable way of life. Our vision is a world made better by chemistry, where people live happier, healthier, and more prosperous lives, safely and sustainably—for generations to come.
