Transportation plays a vital role in the business logistics/supply chain management process. Compare and contrast how regulation versus deregulation has impacted transportation. Ask yourself what were the major influences on both regulating and deregulated the transportation industry. What effects has globalization had on regulations? How have customers benefited by regulation or deregulation?
Your work should be supported by peer-reviewed articles from the University library, Government websites, and/or GAO reports. The paper should be a minimum of 1000 words. APA format should also be used.
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Transportation regulation and deregulation became a hugely controversial issue in the 1980s when President Ronald Reagan pushed for fewer constraints on businesses attempting to secure their supply chains. By 1995, deregulation became so popular that Democratic President Clinton signed a Republican bill, the ICC Termination Act, which abolished the Interstate Commerce Commission (ICC), which provided most of the regulatory framework for corporations. The end of the ICC increased business profits dramatically because they were taxed far less for using American and international transportation routes that connected to the United States (Moore, 2008). However, the ICC’s replacement, the Surface Transportation Board, is less able to provide security for supply chains and curb abuses by corporations competing with each other to secure the same supply chains.
The ICC’s demise led to a virtually deregulated transportation market. According to Coyle et al (2010) and PL 104-88 (1995), the ICC Termination Act allowed “to the maximum extent possible, competition and the demand for services to establish reasonable rates for...
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