Does the Price Tag for Safe Trucking Keep New Carriers Out?

September 15, 1999 7:48 AM, EDT

When trucking was deregulated almost two decades ago, the traditional barriers to entering the business came crashing to the ground. For better or worse, anyone could buy a truck and start hauling freight for a living. Suddenly, the number of operators, especially in the truckload sector, began to grow. And grow. And grow some more.

But it wasn’t too long before new obstacles emerged, especially in the area of technology. When it came to the latest innovations in trucking and trailer equipment, particularly involving telecommunications and satellite tracking, it was the larger companies that could afford to stay ahead of the curve and make themselves more attractive to potential customers. Smaller carriers, lacking the economies of scale of their larger brethren, had to make do with less, which often meant the difference between sinking and swimming.

Now, some industry observers think another barrier to entry has reared its head, and its name is safety.

If running a safe fleet is “good business,” as many claim, the question remains: Is it good business for everyone? Or just for the larger companies that can afford safety directors, state-of-the-art training programs and top-of-the-line, gizmo-packed equipment?

For the full story, see the Sept. 13 print edition of Transport Topics. Subscribe today.