The US public policy towards freight transportation was controlled and regulated by the federal government. The airline industry was managed and controlled by Civil Aeronautics Board (CAB) which put in place tough restrictions especially to new carriers getting into the business (Moore, n.d.). Additionally, the motor carriers were controlled by Interstate Commerce Commission and similar to airline management, it barred new trucks and bus firms from joining the business. In the airline sector, the rates were determined by the route and with tight restrictions in place which made business transactions hard.
After realizing poor services in the pretense of protecting the industry, President Kennedy ordered for immediate reduction of controls over tracking (Moore, n.d.). Even though the bill was for the benefit of the industry, it was not backed by the white house. Around 1975, another order by president Gerald Ford that aimed to reduce tracking was also not signed in. In 1980 oversight by the federal government was removed partially to allow for much lower rates from the trucks. Surface transportation board was put in place in 1980 to regulate surface economic matters and lower the high transportation fees. Airline regulation was also key and results showed that the two airlines not controlled by the Federal government were cheaper and offered the best services.
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Today, there is a massive transformation where rail is the largest cargo career in the US (Hillestad et al., 2009). The low-cost rail transport encouraged the development of other businesses in the US. The improvements that have seen freight transportation efficient include increased funding from different agencies, reduced vulnerability to disruption, and increased effective capacity. Involving the private sector early and linking to funding improves efficiency. Finally, the development in the US freight transportation has improved the economy and transportation overall.
References
Hillestad, R., Van Roo, B., & Yoho, K. (2009). Modernizing the U.S. freight-transportation system for future economic growth. https://doi.org/10.7249/rb9457
Moore, T. G. (n.d.). Transportation policy: Past, present, and future . Stanford University. https://web.stanford.edu/~moore/MovingAhead.html
