LTL SERVICE IN THE WEST: LONG-TERM LOSSES REPLACE SHORT-TERM GAINS

The proponents of deregulation predicted that freedom of entry and increased competition would lead to better service, and lower rates for all; including small businesses and small rural communities. U.S. Department of Transportation sponsored studies conducted during the first five years after regulatory reform identified increases in the availability of less-than-truckload (LTL) service. From late 1982 through the end of 1988, there has been a sustained period of national prosperity and economic expansion. Based of LTL service provided at all of the 532 county seats in 13 western states, an index of the availability of LTL service shows a 39 point drop during this same six year period. The Fall 1976 edition of the "National Highway and Airway-Carriers and Routes" directory indicated that LTL service was being provided at 4,236 points in eleven western states. By the end of 1988, 2,797 (66 percent) of these points had lost 100 percent of the motor common carriers that were shown as providing LTL service in 1976. This study, conducted more than three years after the last of the DOT studies, indicates that short-term gains have been replaced by long-term losses in LTL service due to numerous motor carrier bankruptcies and/or the abandonment of their common carrier obligations by financially distressed truckers. These results confirm the predictions of those who were opposed to trucking deregulation.

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00490017
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Dec 31 1990 12:00AM