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U.S. Seeks End of Trucking Regulations

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From Reuters

Transportation Secretary Elizabeth Hanford Dole called today for an end to all federal regulation of truck companies, a move that brought strong objections from the trucking industry and the Teamsters union.

The trucking industry was substantially deregulated in 1980, but rate changes for most goods must still be filed with the Interstate Commerce Commission within one to seven days in advance, a procedure Dole said is wasteful.

“It is now time to eliminate those remaining elements of economic regulation which no longer provide any benefits to shippers or consumers,” Dole told the Senate Commerce Committee.

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She said truck companies should be free to carry any cargo they wish at whatever rates are mutually agreeable to them and their customers.

No Rules for New Firms

She also said there should be no restrictions on new truck companies entering the interstate market or on existing companies expanding their markets.

Truck lines would still have to meet federal safety and financial responsibility standards.

Opponents of deregulation said the industry is in weak financial condition because of increased competition, higher costs and the 1982 recession and could not stand further changes that would lead to massive price wars.

“Additional deregulation at this time will weaken the industry upon which we all depend,” American Trucking Assn. President Thomas Donohue said.

Teamsters President Jackie Presser said in a statement that further deregulation would lead to more bankruptcies in the trucking industry with the loss of more jobs. Presser said highway safety would also be jeopardized by creation of thousands of additional truck lines.

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