In my August 17 post, A History of Trucking Regulation 1880 to 1949, I discussed how the foundation of modern regulations governing motor carriers and truckers was established during that time. These early controls focused on who could truck, where they could truck and how much they could charge to haul a load, culminating in the Motor Carrier Act of 1935 creating the Interstate Commerce Commission (ICC).

As the transportation industry grew, the ICC�s role and strength was further codified with two U.S. Supreme Court cases: American Trucking Associations versus the United States in 1953 and the United States versus Drum in 1962. In the first case, the Court ruled, �the trucking industry prior to the Motor Carrier Act of 1935 was economically unstable with small carriers unable to adhere to the most minimal of safety standards or financial responsibility.�  The 1962 suit also upheld and reinforced the Act, because   the Supreme Court determined that Congressional concern over divisions of traffic which may harm existing carriers upon whom the bulk of shippers must depend for access to the market was reason enough for the licensing requirement of the 1935 Motor Carrier Act.After these cases were resolved, the ICC and its regulations operated with very little change or debate until the 1970s, although trucking regulations remained a topic of academic and political interest.

As the industry grew from 1950 to 1985, regulations governing the trucking industry evolved to emphasize highway safety and deregulation rather than the intricacies of hauling freight. For instance, in 1962, President Kennedy pushed for more competition within the industry and less regulation, thus sowing the seeds of deregulation. In 1971, the Council of Economic Advisors in the Nixon Administration called for deregulation of all transportation industries. This atmosphere of reducing regulations within transportation industries continued to grow in both the Ford and Carter administrations, with each president appointing ICC commissioners who saw the need to increase competition under the current regulations.

In 1980, the country was in the midst of a recession with a presidential election approaching in November, and Congress was convinced deregulation would help lower consumer prices, which were skyrocketing. They wanted to promote competitive and more efficient transportation services by deregulating the trucking industry and permitting an array of hauling rate options that would meet changing market demands. The only way to accomplish their goal, however, was by significantly reducing the level of the ICC�s regulation of the trucking industry. Because the ICC already had the authority to deregulate with or without Congress's approval � and Congress did not want to be shut out of the process � they pushed Senator Edward Kennedy to introduce legislation that became the Motor Carrier Act of 1980.

The Motor Carrier Act of 1980 didn�t abolish regulation entirely, but modified it so the ICC could no longer prevent new carriers from entering the industry simply because they might take freight or revenues away from already licensed carriers. The Act also gave truckers more ability to set their hauling rates and stopped the rate bureaus from discussing rates with other carriers that belonged solely to individual trucking companies. Passage of the Motor Carrier Act of 1980 led to two interesting results within 10 years: roughly 1/3 of the 100 largest trucking companies prior to the Act and deregulation closed their doors, while at the same time the total number of trucking companies doubled

With the Act in place, the additional reduction of government regulation began in earnest when Ronald Reagan became President in 1981.

The Surface Transportation Act of 1982 set uniform size and weights limits for the trucking industry nationwide. Under this law, trucks using interstate highways may not weigh in excess of 80,000 lbs. Uniform weight limits changed the way the railroads had controlled the weight and size of trucks along the Mississippi River, where the Railroad lobby had influenced the respective legislatures to limit trucks to 73,280 lbs in those states, which made it illegal for an 80,000 pound truck to travel coast to coast. The transition from COE (Cab Over Engine) tractors to the longer conventionals we�re accustomed to today also began with the new weight limits.

In 1985, the Southern Motor Carriers Rate Conference, wanting to continue setting and controlling their hauling rates, challenged the Motor Carrier Act of 1980 by taking the U.S. Government to court. The U.S. Court of Appeals for the Eleventh Circuit stated regulation of motor carriers under the ICC and the ratemaking rules set in 1935 �discouraged competition.� The Circuit Court called the rate-setting regulation �unyielding� and noted that ratemaking tended to prop up even the weakest motor carriers.

From 1980 to 1985, the new focus on deregulation created greater competition between carriers, the ability to develop profitable freight lanes without the need for government approval, the right to charge any rate a carrier wanted and to have uniformity in weight and size of trucks for all carriers. 

As we move towards the present from 1986 forward, we�ll see where safety is going to take a front seat ahead of everything. We�ll see the ICC abolished, the Hours of Service rule rewritten not once but twice, and technology become a driver of regulation and safety in the industry.

Check back next week, when the the series will move forward with the History of Trucking Regulation from 1986 to the Present.

Good loads and good roads, everyone.

Timothy Brady
� 2010
To contact Brady go to www.timothybrady.com