pennsylvania Railroad TOFC Train service Coffee Mug

The Staggers Rail Act of 1980 is a United States federal law that deregulated the American railroad industry , and it replaced the regulatory structure that had existed since the Interstate Commerce Act of 1887. Because of the staggers act The railroads were free to come up with plans to move trailers and set their own tariffs or prices. The 5 plans below were created because of railroad regulation. Plan 1: Railroads and motor common carriers -- PRR carries trailers owned by motor common carriers, on a "division" of the prevailing truck rate -- a flat charge per traIler based on weight and distance. The trucker solicits and bills all freight at the truck rates; takes trailers to and from railroad terminals. Plan 2: A railroad operation, door to door -- PRR carries its own trailers. Under this all-rail plan, the railroad deals directly with shippers; furnishes all equipment; and provides all pick-up and delivery between shipper plants and rail terminals. Pick up and delivery confined to specified territories. Plan 3: Shipper trailers, rail cars -- PRR carries trailers owned or leased by shippers, at a flat rate. The shipper delivers trailers to railhead; the railroad puts them aboard flat cars, ties them down, transports them to destination and grounds them. . Plan 4: Shipper trailers, shipper cars -- PRR carries trailers owned or leased by shippers on cars which are also owned or leased by shippers. Charge is a flat rate per car, whether trailers are loaded or empty. . Plan 5: Joint rates, rail-motor -- PRR carries its own trailers, it extends the transport operation of each participant. these plans were all needed before rail deregulation. President Carter signed the Staggers Act, which deregulated the American freight rail industry. Free enterprise allows for solutions that government control of industries cannot achieve. It allowed for increased investment and technological advancements instead of the continued decline of the rail industry. Images © Stan Feldman April 2000