Frequently Asked Questions

Industry News > STB Decision > FAQs

1. What is the Surface Transportation Board (STB)?
   The STB is an economic regulatory agency created by Congress. The STB is decisionally independent, although administratively affiliated with the U.S. Department of Transportation. The agency has jurisdiction over, among other areas, interstate household goods motor carrier rates.
   
   
2. With the STB antitrust decision, what is changing?
   By federal statute, Congress gave interstate household goods motor carriers the right to jointly set transportation rates in a published tariff, subject to the STB’s approval. In its antitrust decision, the STB withdrew approval of the Household Good Carriers Rate Bureau, the entity through which approximately 2,400 interstate household goods motor carriers were permitted to collectively set transportation rates. As a result of the decision, starting Jan. 1, 2008, Mayflower and all other carriers must independently set transportation rates and publish their own tariffs, without consultation with other carriers.
   
   The STB decision, however, did not eliminate the federal statutory requirement that each interstate household goods motor carrier publish its own individual tariff, which includes a price list. In general, tariffs contain the rates, rules, and charges, all of which must be reasonable, governing each of the services provided by the carrier. Each carrier’s individual tariff and the carrier’s competitive practices must also fully comply with the requirements of the antitrust laws.
   
   
3. Why did the STB decide to withdraw its approval of the industry’s antitrust immunity?
   In making its decision, the STB stated that the moving public has a significant interest in a competitive market for all customers. In its announcement the STB said, “Our action today will protect all shippers, especially the small-volume or infrequent shippers who are most likely to lack the bargaining power to obtain market-driven discounts, from the collectively set class rates.” Note: While the original date for implementation was to be Sept. 4, 2007, the date has been extended to January 1, 2008.
   
   
4. As the leader in the industry, what is Mayflower doing in response to the STB Decision?
   We plan on being proactive and taking the leadership role you would expect. Mayflower’s customers will see a new customer-focused rate structure that is easier to understand and that will allow for simpler invoicing. In the future, you can expect to see a simplified tariff that is built to meet your needs that creates opportunities for real value for our customers, as well as fairly compensate all those who provide top quality service. Additionally, we are working hard to help you work smoothly through this transition period.
   
   Through it all, Mayflower will provide its customers with even better customer service than ever before. We are proud of our robust Information Technology capabilities, (our parent company was rated number one in the industry by CIO magazine – a major industry publication), which will support our transition to this new environment. With the active participation of our Board, we are committed as ever to serving the needs of you, our customer.
   
   
5. What does this mean to me as a Mayflower’s customer with a contract with the van line?
   Unless prohibited by law, your current contract will remain in effect until its expiration date even if it is after Jan. 1, 2008, with no changes to the stated provisions.
   
   
6. As a corporate customer, what will happen when my contract is up for renewal?
   If your contract expires after Jan. 1, 2008, at the time we open renewal discussions, you will be provided with current and new pricing options to review. You can count on us to help you work through the process to make contract renewal as straightforward as possible. For instance, we will be happy to provide you analysis that “bridges” proposed pricing with prior tariff approaches.
   
   
7. Bottom line, what can I expect from these changes?
   We are committed to simplifying our pricing. Our consumer-centric focus will continue, as will our plan to improve consumer understanding and bring common sense, efficiency and simplicity to pricing.
   
   
8. Where can I learn more?
   Please talk with your local agent, or check back here periodically for updates.