Chapter 5 Study Questions
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Chapter 5 Motor Carriers Study Questions
5-
Compare and contrast the truckload segment of the motor carrier industry with the LTL
segment in terms of infrastructure, cost structure, market structure, and operating
characteristics.
While LTL carriers apply smaller trucks as well as larger terminals for combining partial
loads, truckload carriers use larger trucks and ports to transport entire loads.
The truckload market is greater commodity-like with many carriers, whereas the LTL
market has fewer carriers and is greater differentiated by service offerings.
Truckload carriers have greater fixed costs for equipment but less handling costs,
whereas LTL carriers had higher factor handling costs instead can extend fixed terminal
costs across more shipments. Truckload pricing is more competitive.
While freight companies specialize in picking up and delivering with linehaul movements
between terminals combining cargo into full trailers, truckload carriers concentrate on
doing direct routes from point to point with full trailer loads.
While LTL carriers concentrate on packed freight networks as well as terminal utilization
to minimize handling costs, truckload carriers value fleet effectiveness to maximize
miles.
While LTL carriers can more effectively take advantage of uneven shipments between
regions by consolidating routing at terminals, truckload business models depend on
securing backhaul freight for balancing outbound and inbound loads.
6- What is the nature of intramodal and intermodal competition in the motor carrier
industry? How have the motor carriers fared in terms of intermodal competition since
1980?
Intramodal competition occurs between various trucking business classifications, akin to
the rivalry between truckloads and LTL carriers. With carriers differentiating themselves
through service offerings, this has held true over time.
Motor carriers fight with other modes, such as rail and barge, for long-haul freight,
which gives rise to intermodal competition. After 1980, as railways and barge lines
became more efficient, this intensified.
Since 1980, containerization has increased intermodal rail traffic, making rail a
competitive alternative for truck routes spanning 300–500 miles. To compete more
effectively for motor freight, railroads also expanded their services beyond bulk freight.
Automobile companies concentrated more on providing door-to-door service, expedited
services, and short-haul routes that cater to demand and are difficult for rail to match.
More freight is now moved by brokers over long distances by rail.
Due to their flexibility and superior service compared to other modes, motor carriers have
continued to dominate transportation below 800 miles, even as intermodal competition
has expanded the options for moving freight. Motor carriers were compelled to increase
their efficiency due to intermodal competition.
7-Describe the general service characteristics of motor carriers and explain how these
service characteristics have contributed to the growth of the motor industry. When motor carriers move loads straight from one customer to another with exact scheduling
and routing adjustments, they offer a high degree of flexibility and adaptability. Instead of
requiring a different mode, they provide door-to-door service with delivery and pickup at
customer locations. Trucks carried more cargo as a result of this convenience. Additionally,
expedited transit is provided by trucks, as freight frequently arrives more quickly and reliably
than by rail or ocean transportation. A lot of shippers found time savings appealing. Furthermore,
there are a lot more private fleets and trucking companies than there are other forms of
transportation, which ensures capacity the availability when needed. Motor carriers are more
affordable than other options for shorter land distances, especially with increased fuel efficiency.
Shippers shifted larger loads from other means of transportation to trucks as availability
increased shipping lanes and adaptability grew viable routes. Due to these benefits in service
attributes, the trucking industry was able to transport ever-increasing amounts of freight and
grow into the huge industry it is today.
10-What are the major issues facing motor carriers as we approach the twenty first
century? How should these issues be addressed?
If certain urgent problems are not resolved, motor carriers could be in danger. One is that as the
workforce ages and incentives are low, there is a shortage of qualified drivers. In order to attract
drivers, carriers must collaborate to provide better pay and working conditions in addition to
implementing training initiatives. Technology advancements also offer chances to increase
productivity, but the associated costs are high. In order to split the cost of technological
advancements like load tracking software and autonomous cars, motor carriers ought to band
together. Carriers face increased operating costs and safety risks as a result of deteriorating
infrastructure. They must make a great case for more money to fix roads and bridges. Rules are
meant to improve safety, but there are issues with the amount of oversight. By collaborating with
regulatory bodies, motor carriers can create rational regulations. Environmental impact is also becoming a bigger problem. Carriers should support research into
environmentally friendly fuels and technologies and actively work to increase fleet fuel
efficiency. Together, we can overcome these challenges of the twenty-first century and continue
to grow the motor carrier sector.
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