The four modes oftransportation consists of: air, road, sea, and rail. It is paramount for firmsto choose the most suited mode of transit raw materials, finished products, orservices to the consumers. There are numerous logistical and financial factorsto consider for choosing the right mode. Road transportation (motor) hasdemonstrated to be the most effective and economical choice of mode. It is themost frequent transportation used domestically and internationally to transit goodsthat arrives from airplanes, railroads, and sea. Goldsby et al. (2014) suggested that “giventhe extensive network of roadways transport within towns and cities, as well asthe connection among them, most origin-destination pairs within a land mass canbe reached via means of motor transportation (p.
17). The objective of thisresearch paper is to discuss the advantages and disadvantages of roadtransportations. This paper will further examine the logistical and financialstrategy of utilizing road transportation from an economical perspective. Introduction: History of the TruckingIndustry Thetrucking industry is one of the largest division within road transportation. Themajority of goods transporting on roads are delivered by trucks. When firstwere first developed during the nineteenth century trucks main purpose were tohaul freight but they were limited to provide long distance transit like therailroad industry.
After World War II,trucks were utilized to meet increased consumers demand and they began tooperate farther and faster. The truckingindustry has been one of the forefronts of the United States economy. Truckscan be seen daily on every major interstate, highway, and local roadtransporting over a tons of goods across America. The economy depends on trucksto transport raw materials between producers and consumers. More than eight-two percent of goods are transportedby trucks. The truckingindustry was heavily regulated by the government which hindered the truckdriving industry during President D. Roosevelt presidency. After the Great Depression, The New Deal wasproposed to ensure that there was fair pricing in the transportation industryby regulating the price, competition, and the markets.
According to Goldbsy st al. (2014) “The U.Sinterstate trucking industry was largely deregulated on matters of economiccompetition in 1980 through provisions of the Motor Carrier Regulatory Reformand Modernization Act (known as Motor Carrier Act, or MCA-80) (p.18). As the America’shighway were developing during the 1950s, trucking industry faced anotherlimitation of transporting cargo through undeveloped terrain. This limitedtrucking companies to transport across the company. In 1956, President DwightD.
Eisenhower signed the federal aid highway act which authorized thedevelopment of a forty-one thousand mile interstate system which was ideal forcross-country delivering for the industry. Effective roads enabled the industryto deliver to any location anywhere safely and efficiently.