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Moving Freight Over The Road
Moving Freight Over The Road
Lecture Objectives:
Understand how motor carriers operate
How motor carriers compete
Look into the future of the industry
Lecture Summary:
Motor Carrier Industry Structure
About 7 million people employed throughout the economy in jobs that relate to
trucking activity
About 3 million truck drivers employed
Basic Operations
Truckload (TL)
Less-than-Truckload (LTL)
Parcel
Cost structure: high variable costs (70-90%), low fixed costs (10-30%)
Government support of highway structure
Terminals not too capital intensive
Operating cost in the United States are currently between$1.20 - $1.80 per mile
Carriers use fuel surcharges to recover some of cost