Story at a Glance

Complete trucking deregulation slated for 1987 session of Congress. meanwhile each state does its own regulating California PUC opts for tighter regulations on rates the current situation.

Tariffs, " which replaced the Minimum Rate Tariffs, were frozen at the level which existed in April, I 980.

In November, 1983, seeing the need for unity to meet their common goals, the California Manufacturer's Association (CMA) and the California Trucking Association (CTA). filed a joint application proposing a new system of regulation.

Briefly, the joint petition of CMA/CTA recommended adding two new classes of trucking contracts, i.e.:

(1) Truckload Volume Contracts based on a minimum of 50 truckloads per year or l0 truckloads in any 30 consecutive days, and

(2) Less Truckload Volume Contracts, requiring a minimum volume of 1.500.000 pounds per year or 30,000 pounds in 30 consecutive days.

Under the CMA/CTA proposal, Volume Contracts must either be justified by a showing of profit on the carrier's last annual report, or by a separate Cost Justification. In the case of the Common Carrier rates (not contract), CMA/CTA proposed that the CPUC prepare, and annually adjust, a Transportation Freight Cost Index (TFCI). If a TFCI showed a percentage change from the previous Index, all common carriers would be required to adjust their rates by the same percentage as the Index change.

Under CMA/CTA, "Me-Too" rate reductions would only be permitted for carriers who are already handling the involved traffic.

The proposal of the Ad Hoc Committee of smaller carriers differed in details from the CMA/ CTA proposal. The principal difference was the opposition of Ad Hoc to the Volume Contracts. Ad

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