Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, March 5, 1992 TAG: 9203050083
SECTION: BUSINESS PAGE: B9 EDITION: METRO
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
Thomas W. Boswell, chief executive officer of Overnite, said this week his company withdrew from the Regular Common Carrier Conference on Feb. 26, and he resigned as director on the conference's board of governors.
Boswell, also a vice president and director of the American Trucking Association, said he wanted to send a message to Congress that some companies favor full deregulation of the trucking industry.
Overnite has operations in Roanoke.
"We're the first carrier to take this position on deregulation, but there are a lot of other carriers on the fence on this issue," Boswell said. "It's an uphill battle."
Congress in 1980 largely deregulated the trucking industry with the exception of intrastate traffic, which is under state control. Several bills pending in Congress would allow federal officials to pre-empt states' regulatory powers, relax restrictions and cut down on paperwork required by the Interstate Commerce Commission.
The trucking group opposes further deregulation and advocates that current regulations be more strictly enforced. Regulation brings competitiveness, financial stability and safety to the trucking industry, the lobbying group says.
Deregulation is dangerous because it "allows for pricing that does not enable the carriers to recoup their costs," said Kevin M. Williams, general counsel for the road carriers' conference.
"It hampers their ability to purchase new equipment, new terminals and reinvest in their operations," he said.
But a Washington-based group representing shippers estimates that trucking companies spend $12 billion annually to adhere to intrastate regulations - costs that are passed on to consumers in higher prices for goods.
"There's no competition among carriers," said Eric B. White, executive director of Americans for Safe and Competitive Trucking. "One would think the consumer would benefit greatly by opening that up to competition."
Some trucking companies get around intrastate rules by driving miles out of their way to cross state lines and re-enter the state. That way, their cargo would be classified as interstate.
"In California, they have to ship boxes out of the state just to ship something across the street," White said. "Think about the wasted fuel."
Paul R. Schlesinger, an analyst who follows the trucking industry for Donaldson Lufkin & Jenrette of New York, said he thinks Overnite's withdrawal from the conference sends a strong message to trucking companies to support deregulation. Overnite, which is owned by Union Pacific, employs 12,000 people and reported $800 million in gross revenues last year.
"Union Pacific is viewed as being very effective in conveying their opinions in Washington," Schlesinger said.
Other major trucking companies have yet to take such a strong public stance on deregulation.
Yellow Freight Systems Inc. of Overland Park, Kan., the nation's largest trucking company, dropped out of the group in October, but the issue wasn't deregulation, said spokeswoman Linda George.
Roadway Express Inc. of Akron, Ohio, also among the largest trucking companies, said its position on deregulation is "under review."
by CNB