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Economic and Market Forces

There is an adage in economics: “People will consume an infinite amount of a free good”. Shippers and consignees treat trucking resources as free goods, causing expensive and inefficient supply chain delays.

 

Economic incentives can change the behavior of everyone in the supply chain. Cargo owners—shippers and receivers of goods transported by truck—would use trucking capital and labor efficiently.  Trucking companies—paid for time currently wasted by cargo owners that force truckers to wait to load and unload—will allocate their resources efficiently. Truck drivers will deliver the goods faster without driving faster because cargo owners treat their time as the valuable resource it is.

Publications

"Returns to Compensation in Trucking: Does Safety Pay?” With Michael Faulkiner. The Economic and Labour Relations Review. 30(2): 262-284. Published OnlineFirst March 20, 2019. https://journals.sagepub.com/doi/10.1177/1035304619833859

"Economic Liberalisation of Road Freight Transport in the EU and the USA” With Annette Thörnquist (Linköping University, Sweden). In The Regulation and Management of Workplace Health and Safety: Historical and Emerging Trends. Peter Sheldon, Sarah Gregson, Russell Lansbury, and Karin Sanders, editors. Routledge, an imprint of Taylor and Francis. 2020, pp. 52-79 (Chapter 4). https://doi.org/10.4324/9780429265679  Download

Presentations

"Building Back Better in Commercial Road Transport: Markets Require Fair Labor Standards"US Department of Transportation: Motor Carrier Safety Advisory Council

July 19, 2021. Download

"Economic Incentives and Market Pressure: Why Markets Require "Safe Rates" Regulation"

Senate Standing Committee on Rural and Regional Affairs and Transport, Parliament of Australia

April 28, 2021. Download

Economics of Long Work Hours: Using Incentives to Change Behavior

Healthy Work Design and Well-Being, NORA Cross Sector Program

April 23, 2020. Download

"Economic Liberalisation of Road Freight Transport in the EU and the USA" 19th ILERA World Congress, Lund, Sweden

June 24, 2021. Download

In the News

“Higher pay means better-qualified applicants and a safer fleet.” John Bendel, Landline, July 2021. Read more

“Trucker Shortage Hits Home: A lack of drivers is challenging the trucking industry and impacting retailers” [Part One of a Two Part Series]. Pat Pape, The Association for Convenience & Fuel Retailing, April 19, 2021. Read more

“The Trouble With Trucking: Want to understand how workers so often get a raw deal, even during a growing economy? Ask long-haul truckers”, The Editorial Board, The New York Times, August 11, 2018. Read more

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