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Critical Issues and Trends for Motor Carrier Transportation

Critical Issues and Trends for Motor Carrier Transportation. Capacity Crunch. Rebounding economy New truck emission requirements Truck driver hours-of-service rules Driver shortage (demographics; security and safety regulations). Congestion Problems.

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Critical Issues and Trends for Motor Carrier Transportation

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  1. Critical Issues and Trends for Motor Carrier Transportation

  2. Capacity Crunch • Rebounding economy • New truck emission requirements • Truck driver hours-of-service rules • Driver shortage (demographics; security and safety regulations)

  3. Congestion Problems • Roads around cities ($8B in 1982 - $70B in 2001) • At ocean ports • At inter-modal facilities • At border crossings (U.S.-Mexico) • Increased costs: fines for sitting idle in ports; road-use fees; reduced capacity utilization

  4. Security • More random inspection of cross-border trucking • Increased employee screening (particularly for hazmat) • Facility security • Increased security regulations (e.g., food products, hazmat)

  5. Security, cont. • Greater emphasis on risk management throughout supply chain – physical security; sourcing implications; etc.

  6. Some Solutions • Unattended and off-peak deliveries (e.g., drop-and-hook; turnkey operations) • Extended gate hours at ports, DCs, etc. • Improved shipping/receiving operations

  7. Solutions, cont. • Surcharges and detention fees • Infrastructure expansion and improvements • Improved administrative processes and procedures (e.g., C-TPAT) • Strategic alliances and collaborative partnerships

  8. Technology • Satellite communications • Mobile communications • Vehicle sensors • Electronic seals • Dynamic dispatch systems • Longer Combination Vehicles (safety issues, however) • On-line bidding (procurement)

  9. Safety • Increased importance in carrier selection • Primary regulator: FMCSA • Driver issues • Fatigue • Substance abuse • Vehicle issues • Fitness • Size and weight

  10. Financial Stability • Bankruptcy rate in trucking industry increased markedly after economic deregulation • Operating ratio – key financial performance metric • Financial stability is a key criterion in carrier selection because of impact on: • Long-term relationship • Carrier service performance • Carrier safety performance

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