Since partial deregulation of the railroad industry in 1980, real rail rates have fallen. Yet, previous studies are inconclusive in identifying deregulation as the reason for lower rates. In this paper, I develop a model that tests a variety of deregulation effects on the rates charged for transporting 34 different commodities. The results suggest that deregulation has significantly affected almost all commodities and that the effects vary by commodity and through time. Initially, deregulation increased rates for some commodities, had no effect on others, and decreased rates on still others. However, by 1988 deregulation lowered rates significantly for almost all commodities.