The Effects of the 1980 Motor Carrier Act on Interstate Trucking Competition

Author

Michael James Cleveland, Fontbonne College

Year of Award

1986

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

Deregulation, Trucking, Interstate, Transcontinental, Shipping

Abstract

The 1980 Motor Carrier Act is the single most important piece of legislation for the trucking industry since the Motor Carrier Act of 1935. The 1980 Act deregulated the interstate trucking industry after forty-five years of protection by regulation.

The historical growth of the trucking industry was effected by these two Acts. The industry had to adjust both operations and funds to meet the challenge of the 1980 Act.

Both those supporting deregulation and those against it claimed that they could reduce costs for the consumers. The common carriers would claim that regulation would provide better service to the customers while the pro deregulation people claimed they could demonstrate improved service through deregulation.

After the 1980 Act became a law, the number of applicants for rights increased. The ease of entry into the industry made the market more competitive causing reduced rates for the larger customers. The competition came from new entry trucking companies as well as major truck lines expanding into new markets.

Six years after the Motor Carrier Act of 1980 has been in effect, financial weakness is still a problem with some of the carriers. The carriers with financial strength are forcing the weak carriers out of business.

For those common carriers who are able to survive the next few years of deregulation, the future will be positive as they have cut rates to the customer and at the same time improved service. The marketing system and free competition will give the United States a small number of transcontinental trucking companies with regional carriers to be feeder lines.

Document Type

Restricted Thesis

Recommended Citation

Cleveland, Michael James, "The Effects of the 1980 Motor Carrier Act on Interstate Trucking Competition" (1986). All Theses, Dissertations, and Capstone Projects. 622.
https://griffinshare.fontbonne.edu/all-etds/622