Similarly, this federal regulation of railroads authorized implementation details for Conrail, the new northeastern railroad system. Rails could establish rates except where the ICC determined there was no competition. Railroads could also create contracts without ICC oversight. This similarly flooded the rail market with too much competition to be effective.
After the popular Penn Central Transportation Company filed for bankruptcy, alongside other railroads, this reform established mass deregulation to provide funding to failing transportation industries. It was the first deregulation law in America for transportation followed shortly by more specific deregulations for airlines (Airline Deregulation Act of 1978) railroads (Staggers Rail Act of 1980) and all truckers (Motor Carrier Act of 1980).