Timeline: 80 Years of Trucking
A lot has changed in the trucking industry over the last several decades. Diesel prices have skyrocketed, technology has changed how things are done, regulations have nearly crippled the industry, and the constricting regulations will likely not ease up any time soon.
Late 1800s:
The Federal Government began regulating the transportation industry in order to prevent railroads from charging inflated freight rates.
1935:
Congress passed the Motor Carrier Act, which gave the Interstate Commerce Commission (ICC) the authority to regulate motor carriers and drivers involved in interstate commerce. The ICC was given the authority to grant operating permits, approve trucking routes and set tariff rates. The agency set uniform tariff rates for hauling freight, which resulted in little to no competition due to pricing.
Mid 1930s:
Containerization became a popular method of transporting freight. It reduced shipping costs, handling of the freight, and cut down on cargo theft and damage.
1967:
The Department of Transportation was created.
1980:
The Motor Carrier Act of 1980 partially deregulated the trucking industry. Over the decade, trucking competition became fierce. Hundreds of new carriers popped up.
1982:
The Surface Transportation Act of 1982 set uniform size and weight limits for the trucking industry. Under the Act, trucks that use interstate highways could not exceed 80,000 pounds.
Ten years after deregulation, one third of the largest 100 trucing companies went out of business.
1994:
The Carrier Reform Act was passed. It reduced the time frame customers could file an overcharge claim from 3 years to 2 years. Eight months later, it was reduced to 6 months.
1995:
The Interstate Commerce Commission (ICC) was abolished. The Surface Transportation Board took control of trucking regulations.
1998:
The average cost of diesel was $1.044 per gallon!
1999:
The Motor Carrier Improvement Act of 1999 outlawed Mexican trucking companies from leasing their trucks and drivers to the U.S.
The FMCSA was established.
The price of diesel fuel was $1.12 per gallon.
1999-2000:
The Used Truck Price Crisis, a period of time in which the entire trucking company faced a “virtual crisis” of falling used truck prices, spanned from the fall of 1999 to through the spring of 2000.
“After several years of strong new-truck sales, capped by the record-breaking pace of the past two years, a wave of good, low-mileage tractors flooded the market and depressed prices to the lowest level seen in years. The falling value of their huge investments in equipment left about two-thirds of the trucking companies in North America practically bankrupt under accounting rules. Bankruptcy filings were rampant. This issue was even more important than skyrocketing fuel prices and the ongoing driver shortage,” the IRS states.
The price of diesel was $1.31 per gallon.
2002:
The nation’s third-largest trucking company, Consolidated Freightways, filed for Chapter 11 bankruptcy. The carrier employed 20,000 workers.
2003:
The average cost of diesel spiked to $1.55 per gallon. 11,500 carriers went out of business from 2001 to 2003.
2004:
New hours of service went into effect on January 4, 2004. Drivers were allowed 11 hours of driving time within a 14-hour period and required 10 hours of rest. The 34-hour restart was introduced.
| Summary of changes to the hours of service | ||||
|---|---|---|---|---|
| Year Enforced | Driving Hours | On-Duty Hours | Off-Duty Hours | Minimum Duty Cycle |
| 1938 | 12 | 15 | 9 | 24 |
| 1939 | 10 | None | 8 | 24 |
| 1962 | 10 | 15 | 8 | 18 |
| 20031 | 11 | 14 | 10 | 21 |
Diesel fuel hit a record of $2.04 per gallon.
2005:
The FMCSA nearly eliminated the sleeper berth provision. Drivers were now required to take a full 8-hour rest and 2-hour off-duty periods during every 10-hours on duty.
Diesel fuel reached $2.402 per gallon.
“Heightened security concerns following 9/11 prompted the U.S. DOT to institute 49 CFR Part 172 regarding these upgraded requirements for CDLs. Fingerprinting of HazMat-endorsed drivers was implemented in the U.S. in 2005, and is expected to deter drivers from renewing their certification.Turnover among drivers remains very high,” the IRS stated.
Driver turnover reached 40%.
2006:
Diesel fuel national average reached $2.745 per gallon.
The Transportation Security Administration issued a Notice of Proposed Rulemaking announced a plan to require all truck drivers delivering and receiving goods from ports have a special ID card called a Transportation Worker Identification Card (TWIC), which included the driver’s criminal history. The cards cost $117-$149.
2007:
The cost of diesel was $3.048 per gallon.
2008:
The price of diesel peaked at over $4.70 per gallon.
Over 3,000 trucking companies and O/Os went out of business.
2009-Present:
Strict emissions laws are now firmly in place, resulting in diesel engines that put out cleaner exhaust than they take in.
On July 1, 2013, new HOS laws took effect, reducing drive time to 8 hours of continuous driving before requiring at least a 30 minute break. The 34-hour restart provision will still be in effect. Drivers are only allowed 1 restart per week, Drivers must take 2 rest periods between 1:00 AM and 5:00 AM.
More changes are on the horizon. The FMCSA released a timeline for planned regulations, per MAP-21 provisions.
Where do you see the trucking industry in the next decade?
Source
evan mink