Journal Article

US Motor-Carrier Exit: Prevalence and Determinants

Grimm, Curtis M., Guntuka, Laharish, Corsi, Thomas M., Cantor, David E.

2019

Overview

The purpose of this study is to first determine the current incidence of exit from the United States' motor-carrier industry. Second, we develop and test an econometric model of the determinants of motor-carrier exit. Using recent data derived from the Motor Carrier Management Information System database, we find that motor-carrier exit continues to be quite prevalent. This study also finds that motor-carrier crash rates are positively associated with the likelihood of exit from the industry, while fleet size and number of commodity segments handled by motor carriers are negatively associated with a carrier's likelihood of exit. Study findings also suggest that for-hire carriers are more likely to exit, and carriers handling hazardous materials are less likely to exit from the motor-carrier industry. The article discusses these findings, including managerial and public policy implications.

• Publisher: Pennsylvania State University Press,Penn State University Press,American Society of Transportation and Logistics, Inc
• Subject: crash rate / Data base management systems / Determinants / Econometric models / Econometrics / Federal Motor Carrier Safety Administration (FMCSA) / Hazardous materials / Industrial development / Information management / Management information systems / Managers / Market exit / Materials handling / Model testing / Motor carriers / Motor‐carrier exit / owner‐operators / Public policy / Trucking