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Abstract

The Motor Carrier Act of 1980, signed into law last July, is intended to promote competitive and efficient service by encouraging more rate and service options and promoting intermodal transportation. Market forces, rather than rulings of the Interstate Commerce Commission (ICC), are now the preferred means of bringing change in the motor carrier industry. For the food sector, the act chiefly affects the distribution of processed foods and farm inputs. Unprocessed farm products were not regulated under the prior act and this exemption continues. Other farm-related products have been added to exempt status. The 1980 Act also provides an opportunity for food distributors to cut costs by making more trucks eligible to transport food products. In addition, the act allows food manufacturers and wholesalers to offer discounts to their customers if they pick up their own purchases, a practice that was previously banned.

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