The Railway Regulatory Reform and Modernization Act , better known as Motor Transport Act of 1980 ( MCA ) is the United States federal law that deregulate the trucking industry.
Video Motor Carrier Act of 1980
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The deregulation of motor carriers was part of a massive reduction in price control, entry control, and collective vendor pricing arrangements in US transport, beginning in 1970-71 with initiatives at the Richard Nixon Administration, run through the Governments of Gerald Ford and Jimmy Carter. , and continued into the 1980s, are collectively seen as part of deregulation in the United States.
Since the passage of the Interstate Trade Act of 1887, the federal government has arranged various modes of transport, starting with the rail industry, and then the trucking industry and airlines. Increasing public interest in deregulation led to a series of federal laws beginning in 1976 with the Revitalization of Turnover and the Law on Regulatory Reform. The deregulation of the trucking industry began with the Motor Transport Act of 1980, which was signed into law by President Carter on 1 July 1980.
Studies of the legislative process leading to the adoption of the MCA show that the Act resulted from an action concert by Carter Administration, Congress leadership, including Senator Ted Kennedy, a broad coalition of "civil society" organizations which is a follow-up. for the coalition made for railway and air transport regulatory reforms, and Interstate Commerce Commissioners appointed by President Nixon and Carter who supported the pro-competition objectives of the 1971 to 1980 legislative initiative (notably A. Daniel O'Neal and Darius Gaskins).
The MCA is expected to be the de-regulation that sweeps the trucking industry. When President Carter signed the bill, he proclaimed:
- This is historic legislation. This will remove 45 years of excessive Government restrictions and inflation and redtape. It will have a powerful anti-inflation effect, reducing consumer costs by as much as $ 8 billion annually. And by ending the futile practice, it will save every year hundreds of millions of gallons of precious fuel. All our citizens will benefit from this law. Consumers will benefit, because almost every product we buy has been shipped, and outdated rules have increased the price we have to pay. Truckers will benefit because new services and pricing options appear. Labor will benefit from increased employment opportunities. And the truck industry itself will benefit from greater flexibility and new opportunities for innovation.
Maps Motor Carrier Act of 1980
Contents
The law prohibiting the tariff bureau interferes with any carrier right to publish its own tariffs. As implemented, it removes most tariff picks from the tariff bureau, removes most restrictions on commodities that can be done, and deregulates routes that can be used by motor operators and geographic areas they can serve. The law allows truckers to be free of price within "fairness zones" and thus truck drivers can increase or lower tariffs from current levels by 15 percent without challenge. They are encouraged to make independent tariff submissions with larger price changes.
A very interesting aspect of legislation is that it is carried out more aggressively, in a pro-competitive direction, than is written. Promoting independent pricing and open entry is essential to achieving competitive levels, made possible by truck industry characteristics. Under Darius Gaskins, Chairman of the Interstate Commerce Commission in the immediate period following the passage of the Act, the control of entry has dramatically diminished. In addition, the Commission interprets the Law to allow for the creation of contract rates without regulatory review, and it opens the field for transport brokers, which can manage better suitability between demand for transport services and the availability of aircraft carriers.
Prior to the law, the industry only continued the wage and higher operating costs to the shipper. The law has far-reaching consequences, leading to lower general prices for consumer packaged goods, greater price competition, and lower profit margins.
Criticism
Critics of the law argue that a large part of the price reduction comes from reduced truckers' earnings.
Aftermath
Since the law was enacted, the number of new companies has increased dramatically, especially low-cost and non-unionized airlines. In 1990, the number of licensed operators exceeded 40,000, more than doubled in 1980. Combined with the Staggers Act (1980), intermodal freight transport surged, increasing 70 percent between 1981 and 1986.
Deregulation allows manufacturers to reduce inventories, to move their products faster, and become more responsive to customers. Consumers indirectly benefit from more efficient and cheaper carriage of goods, according to a comprehensive study from the Ministry of Communications. [1]
"The deregulation of the truck industry in the 1980s resulted in the loss of more than 10,000 employers used to contribute" to the Central American Pension Fund. This is one of the factors that "caused the problem of funding the low fund of the Central American Pension Fund". [2]
See also
- Motorcycle Transport Act of 1935
References
Further reading
Source of the article : Wikipedia
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