Impact Of Deregulation On The Trucking Industry

In 1887, Congress passed the Interstate Commerce Act, making railroads the first industry subject to Federal regulation. This law was passed by the Congress largely in response to the public demand that railroad operations be regulated. A five-member enforcement board knowns as the Interstate Commerce Commission was also established by the act.

The railroad monopolies were the first to be targeted by the government. Small customers and businesses were taking huge hits from the outrageous overcharge and prices set by the monopolies. State legislatures attempted to fix this issue creating maximum rate laws, however the Supreme Court would later rule these state laws as unconstitutional in Munn v. Illinois. This ruling further enraged the public as many of these railroad monopolies were giving

The Federal Trade Commission Act of 1914 (which also includes an Amendment known as the Wheeler-Lea Act of 1938)

The Sherman Anti-trust Act in1890 aimed to stop monopolies from their unfair practices: The standard oil company being one of the government’s first attempts to stop. The government’s actions demonstrated their attitude towards monopolies. “ In 1887, congress passed the Interstate Commerce Act, which outlawed railroad rebates and kickbacks and also established the Interstate Commerce Commission to ensure that railroad companies obeyed the new laws” (“Sherman”). Both the Sherman Anti-trust and Interstate Commerce Acts were established to minimize the control monopolies had over the economy.

The United States Airline Deregulation Act of 1978 was a dramatic turning point in America. It was the first systematic dismantling of a comprehensive system of government control since the Supreme Court declared the National Recovery Act unconstitutional in 1935. It was also part of a broader movement that, with varying degrees of thoroughness, transformed such industries as trucking, railroads, buses, cable television, stock exchange brokerage, oil and gas, telecommunications, financial markets, and even local electric and gas utilities. Since the Airline Deregulation Act of 1978, the airline industry has experienced significant growth,

After that the Clayton Antitrust Act was created to elaborate on the general provisions of the Sherman Act and specified a number of illegal practices that either contributed to or resulted from companies taking over. It outlawed commercial practices such as charging different prices to different customers, the buying out of competitors and combining boards of directors. This allowed for farmers and big companies to be able to compete equally. The government also established the Federal Trade Commission, an agency with the power to investigate possible violations of antitrust laws and to issue

The deregulation of the trucking industry began with the Motor Carrier Act of 1980, which was marked into law by President Carter on July 1, 1980.A division of the U.S. Department of Transportation, the Federal Motor Carrier Safety Administration (FMCSA) regulates nearly all aspects of the trucking industry. 1935 Motor Carrier Act (MCA) established two classes of carriers, private and exempt, that would not be subject to ICC price regulation. Two classes subject to operating authority and safety regulation only. Private exemption allowed companies with product to ship to get their own trucks and drivers, and move their own product After deregulation, Trucking industry are free to explore with new price and service options. They have restructured

The automobile industry has brought the United States economic growth due to the impact that automobiles have made on society. There has been a plethora of jobs associated with the auto industry, including manufacturing, auto repairs, insurance, and the development of roads, sales, and auto parts to enhance vehicles. Cars, trucks, and SUVs’ have become a way of life for people and have made an additional economic impact by becoming the primary means of transportation for consumers to commute to and from work, vacations, and travel between destinations. Most family households live on a budget and they must make the decision of how much of their budget they can allocate to transportation costs.

The recent surge in the cost of heating oil, diesel fuel, and gasoline in the United States has had significant impact on many sectors of the U.S. economy, but most importantly it has had quite a devastating affect on the trucking industry. This is important due to the fact that nearly "70% of U.S. communities rely solely on trucking for their supplies" ("ATA" 23). If the government continues it 's trend of non-intervention and refuses to place pressure on OPEC, the prices will continue to soar well over the two-dollar mark, and cause the trucking industry as a whole to shut down bringing the U.S. economy to a grinding halt.

Staying in complete compliance with all the federal regulations is an absolute necessity for trucking companies, regardless of size. Failure to do so will result in a variety of problems, including penalties, fines, and may even lead to the company's privileges being revoked. The vast majority of trucking company professionals are not compliance experts, however, and they often rely upon the services of a trucking compliance company to ensure they're meeting the DOT rules and regulations.

A potential worsening truck driver shortage is a major issue that could affect both Hub Group and the overall transportation industry as drivers are needed for the “final mile” of transportation regardless of mode. The regulatory environment plays a key role as recent legislation aimed at improving safety and reducing environmental impact is projected to reduce driver capacity. Specifically, stricter safety standard from CSA 2010 and “hours of service” changes have led to elevated requirements for hiring drivers and a reduction in drivable hours. While most major carriers already use electronic logs, the legislative mandate for electronic logs for all truckers is expected to reduce productivity of smaller trucking companies or owner operators who stretch the law today. Higher equipment/emissions standards like the California CARB compliance has caused some drivers to exit the market and resulted in higher vehicle expenses for those that

Truck drivers or truckers are considered transporters because their work entails driving container loads of various products to designated locations. Trucking companies ensure that people living in remote areas get the supplies they need for daily living. This means truck drivers put in long hours, face season changes the best way that they can and brave the rather insecure nature of their trade to meet their deadlines.

Regulations imposed on the motor carrier industry have two sided effects on the US economy. The motor carrier industry is a vital aspect of the US economy, transporting goods all across the world. First let’s explore the term regulation this is a law or rule placed into effect by the Federal Motor Carrier Safety Administration (FMCSA) this administration creates and implements the regulations for various reasons, safety, driver qualifications, hours of service, fuel costs and fuel standards and emissions. As with anything when enough restrictions are applied the effects often mean a loss in economic growth. After 9/11 the transportation industry was

On October 24, 1978, President Carter signed into law the Airline Deregulation Act. The purpose of the law was to effectively get the federal government out of the airline business. By allowing the airlines to compete for their customers' travel dollars, was the thinking, that fares would drop and an increased number of routes would spring up.

After the crisis of oil in 1973, the demand of Japanese’s vehicles in the United States increased significantly, this is mainly due to Japanese vehicles had a competitive advanced in the automobile manufacturing. They were cheaper, better design and more competent than cars produce in America. Part of the advantages was due to labor differences and technical efficiencies (Exhibit A) (Japan 's Automakers Face Endaka, 1996) Including the lower exchange value of the yen, leaving on the side the principal companies of the U.S automobile industry such as Chrysler, Ford and General Motors, who suffered important losses in their market share. Furthermore, during 1981 to 1985 the dollar appreciated approximate 30% appreciation (Exhibit B) (Trading Economics, 2014), The losses of market share and the appreciation of the dollar caused distress among several sectors in the U.S economy, who exerted pressure to politicians so they could take protective measures in favor of their industries. Most of the measures of protection are given through tariffs and quotas on imports. In pro of the automobile industry, the president of the United States, Ronald Regan, request the government of Japan to voluntary exports restrictions (VERs), limiting to 1.68 million the number of cars exported to the U.S, the restriction was kept in place until March 1984 (Toyota Global, 1981). Although at first the restriction help the American industry to maintain their market share, it also incentive the foreign