Impact Of Deregulation On The Trucking Industry

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

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

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.

I’ve always been in awe of the hard work that truck drivers do, so I never really realized that other people didn’t acknowledge the effort that goes into driving a truck for such long hours. The average American sees semi-trucks as an added danger on the road, something that just gets in their way. They fail to realize that “3.5 million truckers (deliver) 69 percent of the stuff we buy—- $670 billion worth of stuff” (Laskas 253). Without truck drivers on tour highways, every single business in our country would be doomed. There would be no way to efficiently transport goods nationwide. Whether the general populace likes it or not, truck drivers are necessary to our economy, and we need to realize

Before the Deregulation Act of 1978, the airline industry was federally regulated in regards to

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

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.

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.

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.

Over-the-road, or long-haul, truck drivers carry merchandise over state lines. In some cases, these drivers travel a consistent route, but others may work a variety of routes all over the country. Some commercial drivers specialize in carrying uncommon cargo, such as hazardous materials or cars. According to the U.S. Bureau of Labor Statistics (BLS), jobs for drivers of heavy and tractor-trailer trucks (including commercial trucks) were projected to increase 11% during the 2012-2022 decade. In May 2013, the BLS noted that the median annual salary for the field was $38,700. Commercial truck drivers must obtain a commercial driver's license to operate vehicles over 26,001 pounds of gross vehicle weight, according to the U.S. Department of Transportation's Federal Motor Carrier Safety Administration (www.fmcsa.dot.gov). Drivers of vehicles transporting hazardous materials or oversized cargo must also obtain special endorsements and a commercial driver's license (CDL) in their home state. The hazardous materials endorsement involves a knowledge test as well as a TSA (Transportation Security Administration) threat

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.

1. Deregulation of the US airline industry in 1978 ushered in competition in the hitherto protected industry. Several low-cost, low-fare operators entered the competitive market after the deregulation.

The years since regulation have been rocky for the airline industry. Airline after airline has declared bankruptcy and either ceased existence or emerged as a weaker airline. The surviving airlines have done so by merging and protecting their territory with tactics not even dreamed of in most industries. Robert Crandall said it best when he noted, "This is a nasty, rotten business (Petzinger,1995)." You would think that with the competition allowed by deregulation that a large number of new names would exist, but that does not seem to be the case. Most Americans still travel on American, Delta, United, US Airways, or Continental (Kane, 2003). The only true champion of deregulation is Southwest Airlines, whose success is paving the way for others such as JetBlue, but the obstacles are enormous. Initially, the airlines went after each other by slashing fares and driving competitors out of business. The industry quickly learned that although this tactic was effective, it was not profitable, and it was more economical to focus on controlling the air out of a few cities (hubs) than to attempt to directly compete in every single market. Since most of the major airlines already had key cities in which they controlled most of the takeoff and landing slots, airlines could charge higher fares and take in greater profits without any real head to head

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

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