What effect did competition in the trucking industry have on rates?

Competition in the trucking industry has historically led to lowered rates. When multiple trucking companies operate within the same market, they are motivated to attract customers, which often drives them to offer more competitive pricing. This phenomenon stems from the fundamental economic principle of supply and demand; as more carriers enter the field, the supply of trucking services increases. To remain competitive and fill their loads, carriers may reduce their rates.

This dynamic encourages efficiency as companies strive to optimize their operations in order to maintain profitability while lowering their prices. Additionally, consumers benefit from the increased options and lower costs associated with shipping goods. Thus, the vigorous competition fosters an environment where rates are more likely to decrease rather than increase, allowing businesses and consumers alike to enjoy the financial benefits.