Motor Carrier Selection in a Deregulated Environment

The relative importance transportation buyers place on the various carrier selection determinants is studied in light of the current business environment. The change in emphasis given these determinants following deregulation is analyzed as to the impact of certain carrier selection practices of shippers, such as carrier length of stay, turnover, and the use of reliable and unreliable carriers. Questionnaires returned by 296 executives selected randomly from the Council of Logistics Management were analyzed. Results indicate that 5 factors are most important in carrier selection: 1. transit-time reliability, 2. transportation rates, 3. total transit time, 4. willingness of the carrier to negotiate rates, and 5. financial stability of the carrier. A factor analysis loaded the carrier selection determinants into 4 factors - rate related, customer service, claims handling and follow-up, and special equipment availability and service flexibility. A T-test determined the existence of significant differences between the emphasis placed on these 4 selection factors and changes in shipper use of carriers resulting from deregulation.