Does the government really support the growth of new businesses with the proposed new regulations?
I just learned of a new bill that was filed with the house to increase the minimum liability of carriers from $750,000 to a estimated 6.5x increase.
According to congress.gov a new bill that is titled “To increase the minimum levels of financial responsibility for transporting property, and to index future increases to changes in inflation relating to medical care.”
What does that mean for small carriers or new entrants?
I think the bigger question is, does anyone care about the “little guy”?
According to the U.S. Department of Transportation, as of May 2019, the number of for-hire carriers on file with the Federal Motor Carrier Safety Administration totaled 892,078, private carriers totaled 772,011 and other* interstate motor carriers totaled 84,930.
* ‘Other’ motor carriers are those that did not specify their segment or checked multiple segments. All other categories were excluded.
- 91.3% operate 6 or fewer trucks.
- 97.4% operate fewer than 20 trucks.
I want to know if these numbers will decrease if this new bill goes into effect.
All one can do now is pursue their dream and hope for the best. This is sure to raise prices for the shippers as like anything we do as consumers always passes down to the buyers.
Please comment with your thoughts as we approach another curve ball into government regulations.