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Title 49, TransportationRelease 119-110

§10701 Standards for Rates, Classifications, Through Routes, Rules, and Practices

Title 49 › SUBTITLE IV — INTERSTATE TRANSPORTATION › PART A — RAIL › CHAPTER 107 — RATES › SUBCHAPTER I — GENERAL AUTHORITY › § 10701

Last updated Sep 22, 2026|Official source

Summary

Rail companies must set through routes and split joint rates in a fair way and not favor some carriers over others. A carrier may not charge or route traffic to hurt a connecting carrier or unfairly steer traffic when the shipper did not choose the route. Unless another rule bans a rate or the Board finds the carrier has market power, a carrier may set any rate for its services. If the Board finds market dominance under section 10707, the carrier’s rate must be reasonable. The Board must consider how much traffic brings little or no net help to keeping the railroad running and efforts to cut that traffic; how much traffic only barely covers fixed costs and whether those rates can be changed to raise revenue; and whether one product is paying too large a share of total revenue. The Board must keep one or more simple, fast ways to judge rates when a full cost study would be too costly, and it must keep in mind that carriers should earn adequate revenue under section 10704(a)(2).

Full Legal Text

Title 49, §10701

Transportation, Source: USLM XML via OLRC

(a)A through route established by a rail carrier must be reasonable. Divisions of joint rates by rail carriers must be made without unreasonable discrimination against a participating carrier and must be reasonable.
(b)A rail carrier providing transportation subject to the jurisdiction of the Board under this part may not discriminate in its rates against a connecting line of another rail carrier providing transportation subject to the jurisdiction of the Board under this part or unreasonably discriminate against that line in the distribution of traffic that is not routed specifically by the shipper.
(c)Except as provided in subsection (d) of this section and unless a rate is prohibited by a provision of this part, a rail carrier providing transportation subject to the jurisdiction of the Board under this part may establish any rate for transportation or other service provided by the rail carrier.
(d)(1)If the Board determines, under section 10707 of this title, that a rail carrier has market dominance over the transportation to which a particular rate applies, the rate established by such carrier for such transportation must be reasonable.
(2)In determining whether a rate established by a rail carrier is reasonable for purposes of this section, the Board shall give due consideration to—
(A)the amount of traffic which is transported at revenues which do not contribute to going concern value and the efforts made to minimize such traffic;
(B)the amount of traffic which contributes only marginally to fixed costs and the extent to which, if any, rates on such traffic can be changed to maximize the revenues from such traffic; and
(C)the carrier’s mix of rail traffic to determine whether one commodity is paying an unreasonable share of the carrier’s overall revenues,
recognizing the policy of this part that rail carriers shall earn adequate revenues, as established by the Board under section 10704(a)(2) of this title.
(3)The Board shall maintain 1 or more simplified and expedited methods for determining the reasonableness of challenged rates in those cases in which a full stand-alone cost presentation is too costly, given the value of the case.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Prior section 10701 and 10701a were omitted in the general amendment of this subtitle by Pub. L. 104–88, § 102(a). section 10701, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1371; Pub. L. 96–296, § 13(a),
July 1, 1980, 94 Stat. 803; Pub. L. 96–448, title II, § 201(b)(1), (2), Oct. 14, 1980, 94 Stat. 1899, 1900; Pub. L. 97–261, § 9(a), Sept. 20, 1982, 96 Stat. 1109; Pub. L. 103–180, § 2(a), (b), (g), Dec. 3, 1993, 107 Stat. 2044, 2047, 2049, related to standards for rates, classifications, through routes, rules, and practices. See section 10701, 13701, 13709, and 15501 of this title. section 10701a, added Pub. L. 96–448, title II, § 201(a), Oct. 14, 1980, 94 Stat. 1898; amended Pub. L. 103–272, § 4(j)(19),
July 5, 1994, 108 Stat. 1369, related to standards for rates for rail carriers. See section 10701 of this title.

Amendments

2015—Subsec. (d)(3). Pub. L. 114–110 amended par. (3) generally. Prior to amendment, text read as follows: “The Board shall, within one year after
January 1, 1996, complete the pending Interstate Commerce Commission non-coal rate guidelines proceeding to establish a simplified and expedited method for determining the reasonableness of challenged rail rates in those cases in which a full stand-alone cost presentation is too costly, given the value of the case.” 1996—Subsec. (d)(3). Pub. L. 104–287 substituted “
January 1, 1996” for “the

Effective Date

of this paragraph”.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title. Abolition of Interstate Commerce Commission Interstate Commerce Commission abolished by section 101 of Pub. L. 104–88, set out as a note under section 1301 of this title.

Reference

Citations & Metadata

Citation

49 U.S.C. § 10701

Title 49, Transportation

Last Updated

Sep 22, 2026

Release point: 119-110