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TRUCKING NDUSTRY * USA: Rules, regulations and troubles
* DC - When Government targets truckers, everything becomes more expensive
Washington,DC,USA -The Ludwig von Mises Institute/Personal Liberty Digest -September 12, 2014: -- Enduring the bureaucratic and regulation-ridden work environment, U.S. truckers work tooth-and-nail to keep supply chains moving and on schedule. Because of regulatory interference, U.S. trucking outfits are among the few remaining industries that are still largely run and/or owned by mom-and-pop operations. According to the American Trucking Association, nearly 70 percent of all goods moved in the U.S. are transported on trucks. That comes to almost $670 billion in real, physical goods, from durable and manufactured goods, to finished parts for assembly, to consumer goods... There are about 3.5 million truck drivers in the U.S.A., and of those, 1 in 9 are owner-operators. Trucking represents 84 percent of all commercial transport revenue, and 68 percent of all freight tonnage in America. Rail, on the other hand, makes up less than 6 percent of freight tonnage transport... In 2009, $33.1 billion was paid by commercial trucks for federal and state highway taxes. It makes up roughly 5 percent of GDP, and 1 out of 13 private sector employees are involved in the trucking industry, not just drivers but office staff, warehouse, and engine and truck manufacturers. Go one step more and include accountants, attorneys, insurance companies, and other related services... In spite of trucking’s importance to both consumers and producers, however, the State has been preying on trucking companies and seeking to squeeze truckers of their productivity... In February the Obama administration announced a rigorous set of new fuel requirements for big-rigs and tractor-trailers that is putting small companies in a financial bind. According to the Washington Examiner, the EPA is ordering large trucks and buses to reduce greenhouse gas emissions by up to 20 percent and overhaul engine design starting with models built in 2014. Most operators will need to spend thousands upgrading their rigs or buying new vehicles, with prices starting at $50,000 on average. According to John Salez, owner of B and H Trucking in Elk Grove Village, Illinois, he claims the new rules have prevented him from investing nearly $2 million in buying new trucks... Altogether, with the mandatory requirements of expensive exhaust systems, regulating hours, and an absurd point system that is falsely believed to reflect accurate safety records, it all spells lower productivity and higher prices. What once took ten trucks, now takes twelve, thus leading to an increase of the cost of goods which of course is passed in part on to the consumer. Meanwhile, the resulting increases in the price of entry into the trucking industry squeezes small trucking businesses, leading to labor shortages which could have been prevented had the industry been left to the owner-operators...
Labels: rules and regulations, trucking industry news USA, trucking troubles USA
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