The Impact of Regulation and Deregulation in Transportation, Research Paper Example

In the transportation and distribution industry, it is essential to maximize one’s knowledge of logistics in order to ensure that products are delivered in a timely manner, thereby maximizing profit. In the United States, a common method of distributing goods throughout the country by using trucks and establishing the quickest routes between distribution centers. However, this process is considered unsafe due to the unrealistic expectations that many corporations place on their truck drivers. Often, to ensure that products will arrive on time, truckers are forced to stay awake for long periods of time, which results in compromised decision making. In addition, many truckers are paid by mile rather than by hour, so there is incentive to speed. The tendency to avoid sleep and speed is ironic because it will cost the company that is pressuring the truck driver to do so more money that it’s worth. Legal fees are certainly more extensive than the profit that the company would have gained from a slower, successful completion of the truck route. Therefore, there is a clear need to determine alternatives in either trucking regulations or to determine a more efficient way to transport and distribute items.

One of the most obvious solutions to make cross-country trucking more safe has been adopted by Canada (Transport Canada, n.d.). Rather than sending one individual to drive long distance, two people are sent to drive the same truck. This way, when one trucker is in need of sleep, the second can take over. Many corporations in the United States have resisted the use of this model because of the immediate cost it requires. In the primary model used in the country, the corporation only needs to compensate one employee for the trip and it makes the overhead costs appear cheaper. It is necessary for these companies, however, to do an analysis and determine the risk of allowing only one driver per trip, which should include the value of the cargo and distance traveled. It is important for them to include potential legal fees for damaging other cars on the road and potentially ending lives, the medical cost the company would have to provide to the truck driver if he or she were to be injured, and the amount of money that would be lost by the truck not entering the distribution center or warehouse at the appropriate time. Simply doing this analysis would indicate to the corporations that it would be more financially feasible to invest in driver safety. Although these accidents do not happen frequently, it is extremely expensive to resolve when they do. Therefore, a more efficient way to transport and distribute items would be to allow more than one trucker to be assigned to a vehicle. They can take turns sleeping and eating in a manner that would allow the truck to arrive at the distribution center efficiently and safely. Ultimately, companies will find that paying for a second driver is a worthwhile investment.

An additional consideration that is necessary in the attempt to increase the efficiency of product transportation and distribution is the type of transportation methods that are being used. Trucking is the primary method used because compared to using airlines, it is cost effective and can be made to carry an equivalent amount of product. However, it is necessary to consider the other modes of transportation that are used and to determine whether they would be suitable replacements for trucking. Although ships and railroads are used to some extent within the industry, they are used primarily to transport goods that have been received from international trade. Other than the arrival of the ships at the port and the initial distribution that is enacted by the trains, we generally ignore them for further distribution purposes. It is important however, to consider that countries that are leaders in production, such as Japan, utilize trains as an integral part of the transportation and distribution processes. As the infrastructure of the United States currently stands however, it would be difficult to mimic this success.

An important consideration when comparing the United States and Japan’s train system is the efficacy of the trains that are available. In the United States, train travel is considered slow and costly. As a result, a train trip is likely to take the same amount of time as a truck drive (Amtrack, 2013). Therefore, there is little need to invest in trains as being the primary source of transportation and distribution. However, Japan has improved its infrastructure to the point that its trains are highly efficient, and are regularly used for the transportation of both goods and people. The “bullet train” can operate up to 200 miles per hour, while trains in the United States average 80 miles per hour (Hood, 2007). Therefore, Japan’s trains can deliver products more than twice faster than trains in the United States can. Furthermore, an integral difference between Japan and the United States again is that Japan has more railroads that connect a greater degree of cities. The United States lacks this infrastructure and to be able to compete with Japan in terms of product delivery efficiency, would need to put one in place.

Therefore, the primary solution that would assist with the efficiency and safety of product delivery results from investment in a transnational railroad system. It is important for this railroad to have stops in a majority of major cities across the country. This would be effective because it would increase the speed of delivery, enhance safety, and create many jobs. A major argument against this type of project is typically its cost, and even though President Barack Obama spoke about the idea of a transnational railroad system during his initial campaign, he seems to have abandoned the idea as a consequence (Blumer, 2011). However, like having two truck drivers rather than one, the overhead cost of building a transnational railroad would certainly be high, but the payback would be worthwhile. Doing so will enhance the speed of business in the United States and ultimately lead to greater profit for companies. Between the jobs that were made for the creation and operation of the railroad in addition to the additional profits made by corporations, the economy of the country will skyrocket, which will enhance this cycle and encourage even more business.

Although the most dramatic solutions to the efficacy and safety of transportation problem discussed above, there are several other types of regulations that can at least bolster the safety of workers. A majority of these regulations would be governmental, as a majority of the trucker safety laws that have been put in placed are not enforced. For example, trucks are supposed to be regularly maintained and checked for safety before they hit the road. In addition, drivers are supposed to be allowed time to sleep during their journey so that they are always well-rested and able to make safe driving decisions. However, even though these regulations are in place, they are not always followed. Therefore, it is essential for regulatory agencies to determine how these practices can be policed. A major piece of evidence that would assist with this type of investigation is determination of how many hours employees clock (FMSCA, n.d.). In addition, there can be truck checkpoints in which employees are asked how long they have been on the clock and observed for physical symptoms of sleeplessness. It would be easy to implement these checks at weigh stations, because weigh checks are required on many highways, also to ensure safety (Truck Stops, n.d.).

An additional measure that companies can take to ensure the safety and efficacy of their truck deliveries is to ensure individuals that are hired have adequate truck driving experience (TruckingHR, n.d.). Furthermore, they should be provided with comprehensive employee training programs. A major problem in the trucking industry is that although the company is aware of trucking regulations, the driver is not. It is the company’s responsibility to ensure that there is no such gap in this information and to ensure that all drivers are aware of safety protocols. Since maximal driving is encouraged in the industry, it is the responsibility then of company managers to determine how each driver can get the most driving done while still remaining aware and safe. It is then necessary to convey this message to the driver so they are aware of what efforts are too much to be safe and he or she can understand when it is ideal to stop for the night.

An additional method to ensure safety is to increase the fines that are issued to companies for non-compliance with federal transportation regulations. Ultimately, a lot of time and resources on the side of the police force will need to be pooled in to the regulation of trucking, and this need exists primarily because companies are not willing to behave responsibly. Therefore, the fines that are issued as a consequence of failing to comply should be issued to the company, rather than the worker. In addition, it should be a significant fee to compensate for the policing infrastructure that has been established in response to this non-compliance.

In conclusion, it is apparent that the modern transportation and distribution industry is not as efficient and safe as the system set in place in other nations. Therefore, it is essential to look towards the infrastructure they have put in place and establish it in our own country to enhance business. Ultimately, the use of trucking with only one driver is an unsafe practice, and a two driver system should be utilized instead. Furthermore, it is important for this practice to be regulated by the government more greatly. This includes police checkpoints and increasing fines for non-compliance. In addition, it is necessary to invest in the establishment of infrastructure that will enhance our ability to deliver goods more quickly in a cost effective manner. This will require the establishment of a transnational railroad, which will not be cost effective in its primary stages, but the payout will be significant overtime.

References

Amtrack. (2013). National Fact Sheet. Retrieved from http://www.amtrak.com/ccurl/355/968/Amtrak-National-Fact-Sheet-FY2012.pdf

Blumer T. (2011). Was Obama’s ‘Intercontinental Railroad’ Reference Lifted from Previous Identical NYT Errors? Retrieved from http://newsbusters.org/blogs/tom- blumer/2011/09/23/was-obamas-intercontinental-railroad-reference-lifted-previous-identical#ixzz37YUWfylp

FMCSA. (n.d.). Hours of Service. Retrieved from http://www.fmcsa.dot.gov/regulations/hours-of-service

Hood, Christopher P. (2007). Shinkansen – From Bullet Train to Symbol of Modern Japan. Routledge, London.

Trucking Canada. (n.d.). Acts and Regulations. Retrieved from https://www.tc.gc.ca/eng/acts-regulations/menu.htm

TruckingHR. (n.d.). Trucking HR Canada. Retrieved from http://www.truckinghr.com/

Truck Stops. (n.d.). Truckers Directory. Retrieved from http://www.dieselboss.com/truckstops.asp