entry, rate flexibility and more restricted antitrust immunity, the Act has, as we have previously noted, significantly reformed Federal regulation of motor transportation. In implementing this important legislation, we continue to strive to "promote competitive and efficient transportation services" in accordance with the objectives of the transportation policy for motor carriers set forth in 49 U.S.C. section 10101(a)(7). On June 10, 1981, the Commission testified before this Subcommittee that the motor carrier industry and the users of its services have responded favorably to the changes mandated by the Act. I would like to reaffirm that view today. In so testifying, I am of course aware of the financial difficulties experienced by various motor carriers and the fact that unemployment has increased in the trucking industry as in other sectors of the economy. This matter will be discussed in detail later in my statement, but I would like to say at this point that poor economic conditions, rather than regulatory reform, appear to be the principal factor in this situation. Before turning to particular issues, let me highlight some of the things which have occurred since passage of the Motor Carrier Act. • From July 3, 1980 to May 31, 1982, 7,886 new carriers have received authority from the Commission. In addition, over 43,000 new certificates have been served during that same time frame. Applications appear to have leveled off and are presently being filed at the rate of approximately 1100 each month. • Overall, shipper satisfaction with the level of service remains high. Where small community service has changed, it has generally improved. Of the shippers surveyed in the Commission's nationwide small community survey, 9% to 18% said more service was available now than before the Act, 79% to 89% said the availability of for-hire truck service was unchanged, and only 2% to 4% said service was less available now. With respect to freight claims, 86% to 93% of those shippers surveyed indicated either that they had no claims or that there had been no change in their ability to resolve the claims. Three percent to 8% indicted more problems and 4% to 7% indicated fewer problems with respect to claims. • Pricing innovation and independent ratemaking have continued to increase since enactment of the Act. In 1980, 60,600 independent rate actions were reported by major rate bureaus. In 1981, the figure increased to 115,085. • The economic downturn continues to cause a decrease in industry tonnage. This reduction in traffic has had adverse effects on employment levels and carriers' profits. The effects of the Act have reduced the workload of the Commission. As a consequence, authorized permanent full-time staffing levels at the Commission have decreased to a projected 1425 for FY 83. O In response to the revised National Transportation Policy, an effort has been initiated to promote greater minority participation in the motor carrier system. A monitoring program has been instituted and a listing of minorities already established in the industry has been developed. A series of nationwide hearings have been held to determine whether minority carriers encounter any special problems in entering the industry. The results of the Commission's efforts to date are included in Minority Motor Carriers: Status and Prospects, a report included in Appendix III. SERVICE Many of those who testified prior to passage of motor carrier legislation predicted that new and expanded carrier authority, in combination with greater ratemaking flexibility, would result in strengthened competition among carriers, which in turn would provide shippers with lower rates and increased price/service options. At last year's oversight hearing, the Commission indicated that, to a great extent, these predictions had come true. In this regard, it was pointed out that the number of complaints concerning motor carriers of property was down substantially in comparison with prior periods. For example, between November 1980 and April 1981, complaints decreased by 31 percent from the number filed during the same period a year earlier. The trend has continued. While it may be too soon to provide a definitive answer regarding service, particularly in view of the possible impact of recent economic conditions, nevertheless, our experience indicates that the levels of service remain good. Complaints continue at a low level. During the first five months of 1982, complaint levels concerning motor carriers of property ranged from a high of 1,348 in March to a low of 1,069 for May. This is substantially below pre-Motor Carrier Act levels. SMALL COMMUNITIES In section 28 of the Act, Congress mandated a thorough investigation by the Commission of service to small communities. This 18 to be completed by September 1982. The primary tool of our investigation is a survey of randomly selected shippers and receivers in small communities (also randomly selected) throughout the United States.2/ Responses have been received and tabulated.3/ It should be mentioned that the Commission's field staff devoted over 2,000 hours assisting in the Commission's small community study. Basically, the staff traced shippers who delayed the return of the questionnaires and answered questions concerning the need for the information. While some participants in the survey indicated that less service was available in small communities than it was before passage of the Act, a far greater percentage said that more service is now available. of the firms (representing establishments of a wide variety of types and sizes) who received 2/ Firms surveyed include those in retailing, wholesaling, manufacturing, construction, agriculture, and services; shipping levels of the firms varied from less than one shipment per month to 1250 shipments per week. A total of 2094 questionnaires were mailed and 1495 usable responses received. 3/ A Results reported for phase III of this survey are based on |
