Deregulated Trucking In High Gear

Deregulation of trucking through the Motor Carrier Act of 1980 seems to be proving that the economists were right when they protested the authority given the Interstate Commmerce Commission in 1935 by the Motor Carrier Act to control entry and set rates in the trucking industry.

This regulation was brought about by concern over destructive competition although economists pointed out that the trucking industry was a model of perfect competition with low barriers to enter and many sellers offering similar services.

The complex system of operating authorities originated by the ICC regulated both how commodities could be transported and the types of customers to be served.

Inefficient utilization of capacity and large economic rates on carriers with operating authority resulted from the regulations. The market value of operating rights which could be bought and sold was estimated by the American Trucking Association as between l5 and 2090 of the annual revenue for large carriers.

With the reform during the Carter administration, entry restrictions were relaxed, the scope of business for each class of carrier widened and rate restrictions cut.

After deregulation a downward trend developed in rate filings. At least one large carrier cut its rate l0q0 across the board. The number of new carriers applying for operating authority between 1980 and 1982 increased 322a/0. New carriers are filling the voids on routes dropped by larger carriers.

A recent study by the ICC of 1,200 shippers in small communities showed that they felt no adverse change in either quality or availability of service. At this time, it looks as if the economists were right.

Questions in Productivity

A frequently passed over question when trying to increase business productivity: Is this particular job necessary?

The system is made up of highly trained market specialists with years of experience in the softwood lumber industry. The syrtem works fast and with complete follow-through.

eystem has coast-to-coast facilities so we truly know the entire U.S. market.

The system has an in-depth knowledge of the Canadian market as well, since wdre one of their largest lumber importers. The system gives you straight, updated information on all softwood species.

The syctem has a first-rate approach to shipping. Wdll ship your order the most cost and time-efficient way. The slctem is making markets in all softwood species:

Spruce - Green Douglas Fir - White Fir - Western Red