Revamped U.S. shipping categories could ease rate-hike pressure

WASHINGTON, D.C. (Feb. 16, 2000) — The U.S. Surface Transportation Board said that trucking firms like Roadway Express and Yellow must work with their customers to jointly decide shipping categories for freight.

This spring or summer, the STB plans to overhaul the current system that puts 10,000 commodities into one of 18 classes of freight (based on characteristics such as similar value and weight per cubic foot). After reviewing comments from interested parties due April 11, the agency will issue its final decision.

A trucking-industry trade group, the National Classification Committee, currently decides into which class to assign an item. More than 1800 medium and large-size U.S. carriers then use these classes as a basis to set their rates.

Industry observers feel that the STB’s likely action will constitute a “big win for shippers”, who have historically had little opportunity for input into the classification process. The current arrangement constitutes a form of antitrust immunity for truck fleets from charges of price-fixing.

Losing the degree of control the National Classification Committee now has may lead to more competition and less industry pressure for rate hikes, they believe.