Arlington, VA — The American Consumer Institute (ACI), a nonprofit organization dedicated to research and advocacy on economic policy issues, has submitted a white paper to the Surface Transportation Board (STB) in advance of the public hearing on “Growth in the Freight Rail Industry,” scheduled for September 16th and 17th. ACI’s white paper highlights concerns about proposed regulatory changes that could undermine the competitiveness of the freight rail industry, increase costs for consumers, and negatively impact public infrastructure.
Read the full letter here.
Read the full white paper here.
Key Takeaways:
- Shift in Freight Transport: Freight rail is no longer the dominant mode of transport, and over-regulation could push more freight to trucking, leading to increased safety risks, pollution, and wear and tear on roads and bridges.
- Consumer Impact: Imposing additional public utility-style regulations on the freight rail system could result in higher shipping costs, which would likely be passed on to consumers in the form of higher prices for goods.
- Economic Risks: Returning to stringent regulations from over 40 years ago could lead to industry instability, including rent-seeking by large shippers and a potential return to financial distress for the freight rail sector.
The American Consumer Institute urges the Surface Transportation Board and Congress to carefully consider the competitive structure of the modern freight shipping industry before implementing any new regulations. Streamlining existing standards and avoiding regulatory overreach are crucial to maintaining a balanced and efficient freight transportation system that benefits consumers and the economy at large.
Read the full letter here.
Read the full white paper here.
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The American Consumer Institute is a nonprofit education and research organization. For more information about the Institute, visit www.TheAmericanConsumer.Org or follow us on X @ConsumerPal.