The motor carrier industry has contributed to the US economic development. The widespread growth of this transportation has been due to various factor that includes: Accessibility.this is evident in the delivery of freight pickup in urban centers.The motor carrier does provide bridges in between delivery or pickup points.Another significance is speed, shipments of less than 800 miles, they can be delivered by motor carrier in less time than any other mode of transport.The other factor is the interstate systems.This is the public provision of highway system provided by a local government unit and federal and state government that has played a key role because of the level of ubiquity inaccessibility that is provided by the government highway system.Deregulation is another factor that has led to growth in the segment of TL in the business of the motor carrier especially in small truckload carriers that have escalated intramodal competition.There are also other factors and significance of a motor carrier that includes low damage loss and frequency. (John et al., 2011)General Service Characteristic of Motor Vehicle and How they have Contributed to the Growth in Motor Carrier
Widespread growth in the motor carrier industry can be traced through examining the general service characteristics.The general service characteristics include Speed, accessibility, reliability and, low loss and the rate of damage and Small carrying capacity.Accessibility: Motor carrier can be accessed in any location at any given point thus becoming accessible to the general public.Speed: motor carrier delivers goods in less time as compared to another mode of transport going less than 800 miles.The universal characteristic as they bridge between delivery and pickup point and in other modes facilities.The smaller carry capacity which enables shipper use of volume discount or TL rate with low volume. Reliability: Motor carrier ride is smoother and is less likely to cause damage to freight, they are however accessible anytime thus making them reliable.
How Labor and Fuel Have Impacted the Cost Structures of Motor Carrier and How they have Altered Motor Carrier Operations.
Labour costs are significant elements in the industry of motor carrier that is more labor intensive as compared to the other modes of transport.The impacts of the cost of wage since the year 2000 have been lessened by the increase in nonunion drivers.There are labor issues that have altered motor carrier operations that include a shortage of qualified drivers, this is due to drug use, the lifestyle of driver's career, poor driving records and the hardship that is imposed by the long haul carrier operations nature. However, the motor carrier cost structure is being dominated by the variable cost that is due to the ability of carriers to utilize the public highway where the payment is based on the user charges that includes licenses, taxes, and fuel.The increase in fuel price has led to rising relative proportion in fuel cost to the total cost.However, there is some other tax cost that is imposed by the state and federal government in the price of diesel fuel amongst highway user.
(Patrick, Robert, and James, 2014).Fuel price rise increases costs that are associated with a lot of commodities used in the production of other products examples wheat that makes flour because farmers have to pay more to operate the machines or tractors that are used in harvesting.These increase in price is passed along to the retailers.
Major Issues Faced by Motor Carriers Industry in the 21st Century And Their Solution.
(Ssti.us, 2018).The motor carrier operates for a substantial period.However, there ought to be major issues associated with the motor carriers that include, unanticipated events, financial stability, Competition, technology, and safety.unanticipated events may be extreme weather, inclement or crashes.This may result in delays and congestion.This should be addressed by reauthorizing federal transit and highway program and improve the infrastructure development.The other issue is on competition amongst other modes of transport and funding.There is a need for policy analysis and research that can guide Congress and agencies in making good decisions about operating practices and technologies that can improve the system performance.Safety is another major issue.Almost all fatalities of transport occur in highway and involve motor carriers. New navigation and entertainment system seem to increase distraction while driving.The technologies are intended to avoid crashes however, the increased complexity of the electronic system can be a major factor in undermining acceptance and public confidence.There is a need for the responsible body of government to enforce strategies that can prevent this highway injury and fatalities where they could learn this strategy from more industrious nations.Lastly, financial stability that is due to the high operating ratio which is an indication of the financial plight and low competitive rates of many motor carriers.There seems to be overcapacity issue that is a severe problem because of finite freight amount that is being transported at once and little that carriers can do to influence this.There is a need for mitigation techniques that could involve contracting with fuel suppliers for better rates or negotiating on a long-term contract with the manufacturing companies and thus purchase fuel ahead of time.
John, J., Robert, N., Brian, G. and Edward, B. (2011). Transportation. 7th ed. Nartop boulevard: Cengage learning publishers, p.170.
Partrick, D., Robert, L. and James, C. (2014). Retailing. 8th ed. Natorp Boulevard: Cengage Learning, p.180.
Ssti.us. (2018). Cite a Website - Cite This For Me. [online] Available at: https://www.ssti.us/wp/wpcontent/uploads/2014/03/Critical_Issues_in_Transp2013_conti.pdf [Accessed 6 Feb. 2018].
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