STB Won’t Implement Arbitration Program

A proposed arbitration program by the U.S. Surface Transportation Board to resolve small rate disputes will not be implemented.

The program, which was announced in a rule issued by regulators on Dec. 19, required all seven Class 1 railroads to agree to join the program.

However, four of those carriers asked the Board to stay implementation of the program, saying the Feb. 3 deadline to join or refuse to join the program didn’t give them enough time to review the program’s parameters before having to make a decision.

The STB denied that request on Jan. 24 and the carriers, CSX, Norfolk Southern, Union Pacific and the U.S. operating companies of Canadian National, on Feb. 3 submitted a new request for a stay.

That request was denied by the STB on Feb. 14. In response, three carriers agreed to participate in the program, but four others did not.

Because of the lack of unanimity among the Class 1 carriers, the arbitration program will not be implemented.

CSX told the Board in a filing that although it favored a voluntary arbitration program to settle small rate disputes, it was “concerned about certain aspects of the Arbitration Rule as proposed by the Board.”

Tags: CSX, small rate disputes, STB rulemaking, Surface Transportation Board, U.S. Surface Transportation Board