The impact of transportation deregulation in the united states on Canadian—U.S. distribution channels

Abstract

During the 1978-80 period the United States deregulated its transportation industry. Common carriers, through increased reward and expert power, can now perform a more dominant role in the distribution channel. Because of major differences created in the regulatory environment of the U.S. and Canada, deregulation has also had an impact on the distribution channels between the two countries. It is evident horizontal competition between U.S. and Canadian carriers, and between shippers for both domestic and export markets in the respective countries has increased. Another major result of deregulation has been that Canadian shippers and carriers engaged in international traffic to the U.S., even though they have been in complicance with Canadian law, have found themselves subject to the extra-territorial reach of the U.S. anti-trust legislation.