COSTS AND CHARACTERISTICS OF OPERATING INTERSTATE MOTOR CARRIERS OF GRAIN IN NORTH DAKOTA

The general purpose of this study was to evaluate the performance and operating characteristics of the motor carrier industry moving North Dakota grain. Specific objectives were to: (1) identify the structure and operating characteristics of the exempt motor carrier industry; (2) identify costs of operation for exempt motor carriers; (3) evaluate impacts on costs of operation of alternative managerial options; and (4) evaluate viability of the industry over time. The primary data source was a mail survey of grain truckers in North Dakota. Of the identified population of 694 grain trucking firms, 144 questionnaires or 21 percent were returned. Seventy-six questionnaires were useable in each analysis and form the basis of this report. Statistical tests indicated this sample represented the total population well enough to allow inferences to be drawn. The survey was supplemented by three telephone surveys to generate additional data. Several general conclusions can be drawn from this study. (1) Larger trucking firms definitely increased in importance to the grain industry in North Dakota. These firms seem to use market economics to increase economies of utilization (size) rather than scale to achieve better overall performance and market share in the industry. They have longer hauls, larger trade areas, and go to western market areas more than the smaller firms. (2) The industry has regained and even passed the stability witnessed in 1966. During 1966-76, a substantial increase in enntry of firms occurred, but by 1980, the larger, older firms seemed to have regained market share. (3) The higher variable cost characteristics of this industry suggest that rates lower than average total cost per mile may not allow trucking firms to remain in the industry. (Author)

Media Info

  • Media Type: Digital/other
  • Features: Appendices; Figures; Tables;
  • Pagination: 65 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00379622
  • Record Type: Publication
  • Files: NTL, TRIS
  • Created Date: Jan 30 1984 12:00AM