10.6 PPT1 - MotorCarriers...

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Motor Carriers Motor transportation provides a vital link to the   supply chain and our nation.
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History Motor transportation was not much of a factor  until WW I.  Converted automobiles were used  for pick up and delivery. Railroads were not effective at delivering small  packages short distances and  encouraged  the  development of motor carriers, ultimately losing it  to them. Not until the end of WW II did railroads attempt  to get this traffic back but by then the motor  carrier industry was firmly entrenched as a viable  competitor.
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1950 - 1980 The major change affecting the industry during  this period was the development of the interstate  highway system. This system made trucking much faster and  much more effective. Motor carriers steadily replaced railroads as the  mode of choice for the transportation of  manufactured goods.
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Industry Overview The highway system consists of: 46,893 miles of Interstate highway 116,573 miles of other National Highway System  roads 3,869,541 miles of other roads 
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Significance In 2006, the trucking industry had total revenues  of $645.6 billion, representing 83.8 percent of  the nation’s freight bill. In 2007 trucking accounted for nearly 31% of all  transportation ton-miles in the U.S. In 2006, the trucking industry hauled 10.7 billion  tons of freight, or 69 percent of total U.S. freight  tonnage. Rail was the next busiest mode,  moving 13.3 percent of the nation’s freight  tonnage.
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Significance There are 3.46 million truck drivers in the United States. Total industry employment is 8.9  million, or one of every 15 people working in the  United States. UPS employs 60,000 workers and 9% are owner  operators.  LTL shippers account for around 13.6  percent of America's trucking sector.  Average length of haul 485 miles. More than 80 percent of U.S. communities depend solely on trucking for delivery of their  goods and commodities.
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Types of Carriers Legal Forms – for-hire and private. For hire carriers can be local or intercity. May also be either common or contract. TL or LTL Classified by types of commodities, general  freight, specialized carriers, e.g., heavy haulers,  automobile carriers, refrigerated carriers,  household goods carries. 
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Number of Carriers The trucking industry has a large number of  small carriers. There are over 290,000 for-hire carriers and 
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This note was uploaded on 02/01/2012 for the course BMGT 350 taught by Professor Boyd during the Fall '08 term at Maryland.

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10.6 PPT1 - MotorCarriers...

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