STB Decision Terminating Approval of Rate Bureau Agreements Effective September 4, 2007

On May 7th, the Surface Transportation Board issued a decision terminating its approval of the rate agreements of all motor carrier rate bureaus, including the Household Goods Carriers' Bureau Committee, that authorize the bureaus' carriers to engage in collective ratemaking activities.  A copy of the decision can be found at http://www.stb.dot.gov/decisions/readingroom.nsf/UNID/F59BCB38A2524229852572D4004B044E//35262.pdf
 
For more than 70 years, interstate household goods carriers have been authorized to participate in common Bureau tariffs that provide collectively formulated rates, charges and other provisions that apply for all carriers that participate in the tariffs.  The HGCBC Rate Agreement authorizing these activities is subject to periodic review by the STB, which has now concluded that its continuation is no longer in the public interest.  As a result, the STB has terminated its approval of the Agreement thereby removing the anti-trust immunity HGCBC carriers have operated under, effective September 4, 2007.

The Interstate Commerce Act, the STB and Federal Motor Carrier Safety Administration regulations require that interstate movers publish their rates and charges in a tariff that must be available for inspection by the STB and shippers.  Therefore, the STB Decision means that each of the approximately 2,300 carriers that currently participate in the HGB Tariff Series, specifically Tariff 400-N, will no longer be authorized to participate in the collectively formulated 400-N Tariff and will be required to issue their own individual tariff after the STB decision becomes effective.

The HGCBC staff will hold a teleconference call with members of the Household Goods Carriers' Bureau Committee on Friday afternoon to discuss the possible and likely implications of the STB decision, including the ability of individual carriers to adopt the current 400-N Tariff and/or future 600 Tariff as their own.  We will inform you of the results of those discussions as soon as possible.  Additionally, the staff has scheduled a meeting with STB officials to clarify our understanding of the decision and discuss its implications.  One option under careful consideration is a postponement of the decision's effective date (September 4, 2007) to allow a reasonable time period for our industry to prepare for compliance with this very significant change.

We will keep you fully informed as more information becomes available.  In the meantime, no action on your part is required at this time; however, if you have any questions, please contact Dave Hauenstein of the HGCBC staff at 703-683-7410.