Motor Carrier Industry

Motor Carrier Industry

Introduction

The motor carrier has played an important role in the development of the transportation industry and contributed to the economy during the 20th century, and will continue to do so well into the 21st century and beyond. The motor carrier industry has grown since its inception during World War 1, when converted automobiles were used for pickup and delivery in local areas. Billions of dollars have been spent in the U.S alone for the construction of interstate highways system in order to accommodate the motor carrier. From 1950-1980 as more and more highways became developed, motor carriers became the preferred mode of to transport finished and unfinished manufactured products. Today the motor carrier is still the number one mode of transport in the transportation industry. Its closest rival is the Rail industry.

The Motor Carrier Act 1935

FEATURES OF THE ACT

The Motor Carrier Act of 1935 gave the Interstate Commerce Commission (ICC) a federal government agency the power to regulate motor carriers. The ICC agency are the ones to decide which companies could become motor carriers and what type of service they would offer, and how much they could charge. The act also put motor carriers into two categories, common carriers which services the public and contract carriers that holds agreements with one or more customers. Rates charged by motor carriers had to fair and reasonable and without discrimination of its customers or any circumstances. Rate increases by motor carriers had to be filed thirty days before being put in effect, which would allow existing companies to file protest. In 1948 the Reed -Bullwinkle Act, was also passed by congress, which allowed rates set by rate bureaus that represented groups of motor carriers. Also as a result of the Motor Carrier Act special exemptions were made for certain individuals, companies and products from regulation for using their own trucks in their day to day operations of their own business, and motor vehicles operated by farmers and agricultural products.

Significance

By 2006, they U.S paid over 645.6 billion dollars for highway transportation, which is about 83 percent of the nation's total freight bill. Motor carriers were responsible for transporting approximately 1,264 billion revenue ton miles in 2003 compared to 31percent in by other modes in the transportation industry. Because of the motor carrier industry was doing so well, the employment was at an all time high in 2005, with average earnings of approximately $51,683.00, thus demonstrating the significant role the motor carrier has played in society. U.S companies depend on the motor carrier more than any other mode of transportation in the transportation industry.

Types of Carriers

There are two types of carriers in the motor carrier industry. For -hire carriers provide transportation to the public for a reasonable fee and can operate locally or within the city. They can be common or contract operators, whereas private carriers provide service to the industry or company that leases the vehicles with the costs being incurred by the service provider. Truckload (TL) and less- than-truckload