RAIL RATE EQUALIZATION TO AND FROM PORTS

Equalization of rail rates to and from ports in the U.S. was a competitive practice unregulated until amendment of the Interstate Commerce Act in 1935. Section 202(f) of the 4R Act affirms ICC authority over port equalization of rail rates. This study is to determine if ICC involvement has had a beneficial or detrimental effect upon commerce flowing through U.S. ports. It was found that long-haul rail rates are only one element in total international distribution costs and may have only minor influence; that modal competition has significantly reduced rail market share and profit margins which had allowed railroads to support cross-subsidies; that containerization and other technological improvements in ocean transportation erode traditional reasons for maintaining port equalization; that port equalization tends to erode rail traffic because it restricts the ability to make competitive rate changes; and that certain shippers are disadvantaged because they cannot utilize the inherent advantages of a particular route and port.

  • Corporate Authors:

    Interstate Commerce Commission

    Rail Services Planning Office
    Washington, DC  United States  20423
  • Publication Date: 1979-1

Media Info

  • Features: Appendices; Tables;
  • Pagination: 100 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00180357
  • Record Type: Publication
  • Source Agency: Interstate Commerce Commission
  • Report/Paper Numbers: Final Rpt.
  • Files: TRIS
  • Created Date: Oct 12 1978 12:00AM