1. HIGHWAY CARRIERS
Chapter Four

2. HISTORY OF MOTOR CARRIERS
Trucking industry was born in the 1920’s
In 1920’s trucks performed drayage operations to and from railroads
In the 1930’s the industry developed intercity markets and competed directly with railroads

3. MOTOR CARRIER CHARACTERISTICS
Combined auto, truck, and highway expenditures account for about one-sixth the GNP
In the 1990’s, about 1.2 million trucks were registered
In the 1990’s, for hire trucking companies were fewer than 1 million

4. HIGHWAY CARRIER TERMS CONSIGNOR CONSIGNEE The shipper of the goods
The receiver of the goods

5. HIGHWAY CARRIER TERMS TRUCK LOAD
Use either own equipment or contract with owner-operators
Move shipments directly from shipper to consignee
Examples: Schneider National,
JB Hunt

6. HIGHWAY CARRIER TERMS LESS-THAN-TRUCK LOAD
Majority of large trucking firms
Smaller shipments combined to make one larger shipment
Examples: Yellow Freight, Overnite, Roadway Express

7. HIGHWAY CARRIER TERMS PARCEL CARRIERS HOUSEHOLD GOODS CARRIERS
UPS & Fed EX Ground & DHL
HOUSEHOLD GOODS CARRIERS
Nationwide firms with local agents using their name
Examples: North American Van Lines, Allied Van Lines, and Atlas Van Lines

8. MORE TERMS
SPEED OF DELIVERY- lapsed time between when the carrier picks up the shipment and when it is delivered
ON-TIME DELIVERY- product is delivered when expected, no sooner, no later
ACCESSIBILITY- ability to reach numerous sites

9. HOW THE HIGHWAYS ARE MAINTAINED
States construct the highways and the federal government pays a percentage of the construction costs
Maintenance is the state’s responsibility

10. TRUCKING FIRM’S COSTS FIXED COSTS VARIABLE COSTS
Expenses that do not vary with the firm’s quantity or volume of business
Examples: license fees, property taxes, salaries
VARIABLE COSTS
Costs that change directly with the volume of output of a company
Examples: hourly employee’s wages, maintenance, fuel costs

11. HIGHWAY SAFETY
Truckers are no longer able to obtain many licenses. Now only one-the Commercial Driver’s License
Random drug tests
It is now illegal for a truck or bus driver to use a radar detector

12. Impact of Deregulation on Small Quantity Shippers
1. Quality of service increased
2. Rates decreased

13. IMPACT OF DEREGULATION ON TRUCKING FIRMS
1. Environment became more competitive
2. Number of truck load carriers increased
3. Some older companies suffered from bankruptcy
4. A few companies merged

14. DEREGULATION OF HOUSEHOLD MOVING FIRMS
Moving companies have become more customer oriented
Competition has increased
The ICC has allowed new firms into the industry and has let existing firms expand their service