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Jan 5, 2008

LTL Deregulation * USA - Sizzle or Fizzle?

Last May, the U.S. Department of Transportation’s Surface Transportation Board published a decision that revoked the antitrust immunity granted to motor carriers and household goods carriers to collectively determine transportation rates

Washington,DC,USA -World Trade, by Lara L. Sowinski -January 3, 2008: -- The decision is effective January 1, 2008... While the industry had been moving towards a more deregulated environment for some time, this latest development equates to the final nail in the coffin... What’s not known, however, is what the real impact will be on motor carriers and shippers. Some believe the decision will open up a host of opportunities and pricing options, while others say the effect will hardly be felt at all... The impact on carriers: According to Michael A. Duncheon, Partner, Hanson Bridgett, the STB’s decision will have “significant implications for the trucking industry”... In his article “STB Ex Parte No. 656: Truckers Lose Their Antitrust Immunity,” published in the October 2007 edition of The Transportation Lawyer, Duncheaon states that, “The penalties associated with antitrust violations are among the most severe imposed by the federal government and as the deregulation of the airline industry illustrates, it is often difficult for industries to break old habits and adapt to new ways of doing business. Furthermore, there is no sign that the federal government has any intention of backing away from aggressive enforcement of antitrust laws. Just this year, in fact, the Department of Justice reported setting a new record for antitrust sentencing...

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