Evaluation of U.S. Commercial Motor Carrier Industry Challenges and Opportunities

March 31, 2003 Developed with George L. Edwards and Associates The productivity of the U.S. trucking industry is vital to the U.S. economy. However, rising fuel prices, increases in insurance costs, new security requirements, safety and environmental regulations, driver shortages, and a myriad of other challenges threaten the ability of motor carriers to provide fast and reliable services to shippers. This report (conducted for the U.S. Federal Highway Administration) identifies and assesses the challenges that currently are faced by trucking companies, and discusses strategies for overcoming them.

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Table of Contents

1. Introduction
   1. Purpose
   2. Summary of Findings
2. Industry Overview
   1. Long Haul and Short Haul
   2. For-Hire Service
      1. Truckload companies
      2. Less-than-truckload companies
   3. Private Carriage
3. Study Methodology
   1. Issue Identification
   2. Issue Selection
   3. Issue Analysis
4. Rising Insurance Costs
   1. Causes and Industry Effects
   2. Possible Solutions
      1. Private sector solutions
      2. Public sector solutions
   3. Research Needs
5. Hours of Service Rule Changes
   1. Causes and Industry Effects
   2. Possible Solutions
      1. Changes to labor standards
      2. Voluntary initiatives
   3. Research Needs
6. Fuel Price Variability
   1. Causes and Industry Effects
   2. Possible Solutions
      1. Private sector solutions
      2. Public sector solutions
   3. Research Needs
7. Urban Congestion and Travel Time Reliability
   1. Causes and Industry Effects
   2. Possible Solutions
   3. Additional Research
8. New Emissions and Fuel Standards
   1. Causes and Industry Effects
   2. Possible Solutions
   3. Research Needs
9. Driver Waiting and Loading Times
   1. Causes and Industry Effects
   2. Possible Solutions
      1. Changes to trucking contracts
      2. Changes to loading dock practices
      3. Changes to labor standards
      4. Improving travel time reliability
      5. Industry voluntary programs
      6. Related environmental and energy efficiency initiatives
   3. Research Needs
10. Security Concerns
    1. Causes and Industry Effects
       1. Changes to date
       2. Trailer locks / container seals
       3. Border crossing
       4. Hazardous materials transport
    2. Possible Solutions
    3. Research Needs
11. Delays at Port Facilities
    1. Causes and Industry Effects
       1. Gate access
       2. Chassis condition
       3. Vessel bunching
    2. Possible Solutions
       1. Gate access
       2. Chassis condition
    3. Research Needs
12. Summary
    1. Rising Insurance Costs
    2. Hours of Service Rule Changes
    3. Fuel Price Variability
    4. Urban Congestion and Travel Time Reliability
    5. New Emissions and Fuel Standards
    6. Driver Waiting and Loading Times
    7. Security Concerns
    8. Delays at Port Facilities

1. Introduction

1.1 Purpose

The U.S. commercial motor carrier industry is facing a number of challenges that threaten to erode its productivity and compromise the high level of service currently provided to shippers. Heightened security presents a challenge, particularly for carriers of hazardous materials. Marketplace shifts and deteriorating transportation system performance can contribute to difficult operating conditions for motor carriers. Other challenges include regulatory actions concerning safety and the environment that could potentially impose significant cost and service disruptions on trucking companies.

Because the motor carrier industry is so vital to the U.S. economy, these challenges demand attention. The purpose of this study is to identify and assess the challenges, and to discuss possible public and private sectors strategies to mitigate their negative effects.

The remainder of this section presents an overview of the study findings, focusing on possible solutions. Section 2 presents an overview of the commercial motor carrier industry, including a description of the industry’s principal segments, their basic operating characteristics, and some data on the size and level of activity of the various segments. Section 3 describes the study methodology, including the selection of issues for analysis and the characteristics of the organizations that were interviewed as part of this work. Sections 4–11 discuss each of the major challenges and issues assessed in the study, including the causes of the issue and its effects on the motor carrier industry, possible solutions, and needs for additional research. The last section is a complete summary of the study findings.

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