Rail Competition, Switching Under Scrutiny After Biden Order

July 16, 2021, 9:44 AM UTC

A longstanding debate over competitive access to freight railroads resurfaced following President Biden’s wide-ranging executive order that seemingly favors shippers.

The July 9 order, targeting consolidation in numerous industries, asks the Surface Transportation Board—the agency overseeing railroads—to “further competition in the rail industry and to provide accessible remedies for shippers.”

The order emphasizes remedies that compel railroads to allow shippers more flexibility in switching carriers, such as being able to switch carriers mid-route. For shippers, it’s a step forward in their decadeslong fight against a rail industry they argue has hiked rates and neglected reliable service since deregulation in the ...

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