ICC's Expansion of Unregulated Motor Carrier Commercial Zones Has Had Little or No Effect on Carriers and Shippers

CED-78-124: Published: Jun 26, 1978. Publicly Released: Jun 26, 1978.

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Recognizing that changes have occurred in the location of business and industrial activity since the Interstate Commerce Commisssion (ICC) establihed commercial zones in the 1930's, ICC expanded its commercial zones in 1975. The effect of the expanded commercial zones on motor carriers in terms of changes in tonage, area served, rates, revenues, operations, and competition was examined through the use of questionnaires sent to carriers and shippers of 12 zones.

The expansion had little or no effect on most carriers' volume of shipments, rates, revenue, interlining, and certain aspects of operations. Some carriers experienced a change in the size of the area they served, rate competition, and service competition. The expansion also had a negligible effect on most shippers' rates and service. Officials of chambers of commerce, public utilities commissions, planning agencies, and carriers and shippers agreed that the expansion was generally adequate. The effect on most carriers and shippers may change at a future time because of a shift in economic conditions or because of industrial expansion; the commercial zone expansion needs to be continually monitored by ICC.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Chairman, ICC, should establish procedures to monitor the effect and the adequacy of the commercial zone expansion and make adjustments or modifications as warranted.

    Agency Affected:

 

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