A matter of trust, and antitrust

There's little love lost between shippers and the U.S. railroads, which have had a long-simmering debate over rail regulation and pricing.

In hopes of calming the animosity between the two groups, the United Transportation Union (UTU) stepped in last week through a press release, urging railroads and their customers to join UTU and settle their dispute which "threatens the long-term viability of the railroad industry."

"This quarrel is fracturing congressional support for railroads, and its continuation will only further erode the industry's ability to shift freight from the highways," said UTU president Mike Futhey. "Our joint and long-term interests will be better served if we establish a mutually cooperative approach that balances rail industry growth with an equitable process to settle captive shipper concerns over rail market power and pricing,"

The fact that UTU felt compelled to plea for a resolution between the two groups speaks volumes about how rail shippers feel about the railroads and their practices.

On the heels of record profits by BNSF, which controls 95 percent of rail shipping in Montana, the state's attorney general Steve Bullock is spearheading an effort by 20 state attorneys general to pass a law removing exemptions on antitrust laws for railroads. One bill has already been introduced in Congress and another may soon be reintroduced. They seek to impose increased competition among rail carriers while giving industrial shippers a regulatory framework, which they believe, would lead to lower prices on many shipments.