THE IMPACT OF REGULATORY REFORM ON US MOTOR CARRIER COSTS. A PRELIMINARY EXAMINATION.

THIS ARTICLE SHOWS THE IMPORTANCE OF MOTOR CARRIER BROKERING ACTIVITIES IN THE PRE- AND POST-MOTOR CARRIER ACT PERIODS IN THE US. CHANGES IN THE REAL FREIGHT REVENUES OF CARRIERS RENTING A GREATER PERCENTAGE OF VEHICLE MILES UNDER REGULATION ARE ATTRIBUTED PARTLY TO THE CHANGING ROLE OF OWNER-OPERATORS IN THE INDUSTRY AND PARTLY TO THE VIRTUAL ELIMINATION OF ENTRY BARRIERS FOR MOTOR CARRIER PROPERTY BROKERS. THE ANALYSIS SUGGESTS THAT THE SIGNIFICANT FACTOR MOTIVATING THE INCREASE OF MOTOR CARRIER FIRMS BEFORE REGULATORY REFORMS MAY HAVE BEEN THE GAINS IN REVENUES AND PROFITS FROM THE ADDITIONAL BROKERING ACTIVITIES ASSOCIATED WITH A LARGER OPERATION. MOST IMPORTANTLY, THE CONCLUSION IS THAT DEREGULATION ITSELF MAY INTRODUCE STRUCTURAL CHANGES THAT ARE UNFORESEEN BEFORE THE REGULATORY CHANGE.(Author/publisher).