Prior to deregulation of the motor carrier industry in 1980, some people feared that service to small communities would suffer from inadequate or disproportionately high cost of transportation. This report assesses the effects of motor carrier deregulation on small, rural communities and shippers in those areas. Previous studies did not find that small communities had been disadvantaged because of motor carrier deregulation, but those studies were conducted shortly after deregulation was implemented, and views may have changed over a longer time period. However, this study found results similar to those of earlier studies in that rural shippers do not seem to have a disadvantage relative to urban shippers with respect to firm performance. However, neither urban nor rural respondents tend to believe that their rates are much better now than before deregulation, and there seems to be consisted agreement that motor carrier service has not improved dramatically. Results of the study also suggest that a serious problem exists in logistics organizations. Few shippers use transit time and/or transit time reliability data to select carriers and/or manage inventory levels. In this age of global competition, shippers should be looking for every advantage they can find, and a total cost approach to managing logistics operations may offer important gains in efficiency.
Effects of Motor Carrier Deregulation on Small Rural Communitites
2001
50 pages
Report
No indication
English
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