The Impacts of Trucking Deregulation in Ontario: A Market-Specific Analysis

The deregulation of transportation industries has been an ongoing part of the trend towards less government involvement in the marketplace. This paper deals with two important questions related to the impact of the reform of economic regulations in the Ontario for-hire trucking industry (Truck Transportation Act, 1989). Has there been an overall decline in shipment rates and have shipment rates involving less accessible regions increased disproportionately? The conclusions indicate that overall, there has been a decline in shipment rates in the truckload (TL) segment of the industry, although the results are inconsistent in the less-than-truckload (LTL) segment. Also, there does not appear to be a significant increase in the rates for service to less accessible regions. While deregulation has had an influence on certain specific markets examined, the scale and range of impacts have not approached those projected in the debates concerning deregulation in Ontario.