Measures of Effectiveness for LTL Motor Carriers.

This article evaluates the measures of effectiveness for less-than-truckload (LTL) motor carriers in the United States. The trucking industry has undergone a period of prolonged turmoil since passage of the Motor Carrier Act of 1980. Numerous highly visible failures have occurred in both the truckload and LTL segments of the industry. While many new entrants also have appeared, they have been confined almost entirely to the truckload sector. It appears that the relatively high capital investments required to create the "critical mass" route systems necessary for success in the LTL sector have erected barriers sufficient to bar new entrants, be they small, fast-growing carriers or private carriers engaging in for-hire transport. With so many LTL carriers exiting the market since passage of the Motor Canier Act of 1980, a study was designed to determine whether traditional measures of success actually gave clues to the ability of carriers to survive in a deregulated environment.