Since owner-operators provide approximately 25-40 percent of the intercity truck transportation in the United States, any major disruptions to this sector that result from deregulation would seriously impair motor carrier operations. As a result informed policy decisions about deregulation must assess its impact on owner-operators. This paper presents four alternative scenarios for the owner-operator sector in a deregulated environment. Data gathered from a two-year study of owner-operators are then used to assess the likelihood of occurrence for each scenario. The four scenarios range from a prediction of cut-throat competition among owner-operators to one of relative stability and inncreased earnings. Due to the already depressed level of owner-operator earnings, their current high turnover rates, and their increased options that stem from deregulation, it is unlikely that the former prediction will be realized. A more likely possibility is that deregulation will benefit the owner-operators. However, their increased benefits will be in direct proportion to their bargaining power. Multiple-vehicle fleet owners will have more bargaining power in dealing with carriers, shippers, or brokers and, as a result, will benefit more from deregulation than will the single-vehicle owner. (Author)

Media Info

  • Media Type: Print
  • Features: References; Tables;
  • Pagination: pp 56-62
  • Monograph Title: Surface Freight: Rail, Truck, and Intermodal
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00325466
  • Record Type: Publication
  • ISBN: 0309030730
  • Report/Paper Numbers: N763
  • Files: TRIS, TRB
  • Created Date: Feb 18 1981 12:00AM