Should The Government Regulate Freight Rates?

[Bullwinkle]

We all know, or most of us know, that a few decades ago, freight rates were regulated by the Government. Truckers pushed to put a stop to this, and ultimately go their way. Granted, I am too young to know, first hand, what all the reasoning was, but looking at the industry as it is today, I wonder if it was a mistake.

I am not a fan of Government involvement. I would rather see Government involvement in things only as a last result.

With no Government control of freight rates, the rates in which we haul freight can be controlled naturally, via honest competition.

The problem here though is that the competition isn't really honest. There are very large trucking companies who compete for freight with the little guys, but they have an edge. They are operating trucks with students that receive a pay rate that is much lower than what a person deserves for working in this industry. On top of that, this same company that is paying an inexperienced driver to haul their freight is very likely getting subsidized for the "training" they gave them. Then, when this same company can stick two inexperienced drivers in a truck together to move the freight even faster, it doesn't make for a competitive market. It results in huge companies forcing the little guy out of business because they simply can't compete at the same rates.

Basically, the Government is helping these large companies push the independent out of business. While that may not be the intention, it is becoming the result.

So, in order to make the playing field level for everyone in the industry, do we need to consider regulating freight again?

[FlatBroke]

Well, I guess I will be first. I voted yes, BUT only if it would mean that all had a fair chance. No more big companies running over the independents or small companies.

[Bullwinkle]

My vote comes with a whole lot of stipulations, but the short answer is that I am leaning toward yes, and that is a tough thing for me to say. I am not fully convinced with that answer, but since the government is already doing things that give the large companies a huge edge, something needs to be done to level the playing field, for a while anyway.

[sledgehammer]

yes they should so people will stop cutting each others heads off. we are all out here to make a living!!!

We all know, or most of us know, that a few decades ago, freight rates were regulated by the Government. Truckers pushed to put a stop to this, and ultimately go their way. Granted, I am too young to know, first hand, what all the reasoning was, but looking at the industry as it is today, I wonder if it was a mistake.

I am not a fan of Government involvement. I would rather see Government involvement in things only as a last result.

With no Government control of freight rates, the rates in which we haul freight can be controlled naturally, via honest competition.

The problem here though is that the competition isn't really honest. There are very large trucking companies who compete for freight with the little guys, but they have an edge. They are operating trucks with students that receive a pay rate that is much lower than what a person deserves for working in this industry. On top of that, this same company that is paying an inexperienced driver to haul their freight is very likely getting subsidized for the "training" they gave them. Then, when this same company can stick two inexperienced drivers in a truck together to move the freight even faster, it doesn't make for a competitive market. It results in huge companies forcing the little guy out of business because they simply can't compete at the same rates.

Basically, the Government is helping these large companies push the independent out of business. While that may not be the intention, it is becoming the result.

So, in order to make the playing field level for everyone in the industry, do we need to consider regulating freight again?

[CarolinaTrucker]

I don't think the government needs to regulate freight rates. I think the truckers need a Truckers Union. A union could help owner operators & fleet owners as a large group on controlling some of the problems within the trucking industry. A union could help us on getting better rates, fair regulations and make a strong band together during time like now.

[Bullwinkle]

Here is the problem with talks of a Union.

You have companies out there like Swift, J.B Hunt, and other huge corporations. Unions won't get into those companies, and as a result, there will never be a 100% effort to bring freight rates up by a Union.

The big companies haul freight at a cheaper rate, and they won't stop doing it until the little guy is eliminated. At that point, they can start forcing the rates up again because the competition has been eliminated. And unless you can get a Union into these companies, the Union would be completely worthless to the rest of us.

[FlatBroke]

Hey, if the government did regulate it....

Would there still need to be a organization such as OOIDA?

[Bullwinkle]

Hey, if the government did regulate it....

Would there still need to be a organization such as OOIDA?

Yes, we still need a voice in Washington, and that is what they are.

I realize that during this day and time, when the industry is in a mess and in need of drastic change, many look down upon the OOIDA, but they have to understand what the OOIDA can and can't do. They are there daily lobbying to do as much for us as possible, and they need full support in doing it.

They can't, however, call for something like a shutdown, or there would no longer be an OOIDA. Also, these guys could be looking at jail time if they were to try.

Also, they have to be very careful in what they say when people question them about things like a shutdown. If they say anything remotely indicating they support something like this, they face much trouble. This is why, while many are pushing for the shutdown, the OOIDA is doing what they can legally, by pushing for those who are running to demand fair freight rates. This is why they are pushing drivers to contact their reps in Washington to create a bill that would demand all fuel surcharges be passed directly to those who are buying the fuel. Right now, there is no law requiring that, and I hope that everyone who is reading this has already contacted their reps about this.

OOIDA is a great tool for all of us, but it is only as good as we make it.

[FlatBroke]

Ok thanks, I will give you a break for a while, then bring back another round of question's later.

[Bullwinkle]

In regards to regulating freight, I want to be clear on my thoughts.

I think we need it, right now. But I think it should only be temporary, and should take place during a transition where the industry is put on a level playing field by accomplishing things such as:

• Eliminating the ability for large, cut-throat companies, to purchase fuel in bulk, and have the major oil companies/truckstops store it for them. This is an unfair business practice.
• Stop the government from paying these large companies for running potential drivers through their CDL mills and putting inexperienced drivers out on the road as fast as they possibly can. This is an unfair, and unsafe business practice.
• Fuel surcharges must be paid by shippers, and it must all go to whoever is buying the fuel. Right now, the large companies can take a lesser fuel surcharge, or even no fuel surcharge, because the profit they need on each load is much, much less than the profit needed by an independent or small fleet. Once again, this is an unfair business practice.

There are more, but basically you get the idea here. I don't like government interaction in business, but in the case of the trucking industry, they already have their hands so deep into it, we are at the point we need it in the freight rates as well.