Staggers Rail Act of 1980
The Staggers Rail Act of 1980 deregulated US freight railroads, letting them set most rates, sign confidential contracts with shippers, and shed unprofitable lines with less regulatory review.
What it requires
The Act let railroads price freely unless they had market dominance over a movement, limiting rate review to rates above a revenue to variable cost threshold, 160 percent at first and now 180 percent. It legalized confidential rail transportation contracts, gave the regulator broad power to exempt traffic from regulation, later used to free intermodal service, and sped up line abandonments and sales. The Surface Transportation Board now administers them. In July 2025 a federal appeals court vacated the Board's 2024 reciprocal switching rule for poorly served shippers.
Why it matters
Staggers is why intermodal rail is a cost-effective middle-mile option for e-commerce inventory today. Deregulation let railroads restructure, invest in double-stack corridors and sell intermodal service under contracts. For example, an importer moving containers from Los Angeles to a Chicago fulfillment center can book intermodal service under a contract with a railroad or intermodal marketing company, often for less than truckload. Shippers served by a single railroad still have limited remedies for poor service, as the 2025 court ruling on reciprocal switching showed.
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Not legal advice.