Motor Carrier Act of 1980
The Motor Carrier Act of 1980 is the U.S. law that deregulated interstate trucking, letting new carriers enter the market and set their own rates, and that set the minimum insurance every for-hire truck must carry.
What it requires
The Act removed most Interstate Commerce Commission control over who could haul freight and at what price, so carriers today compete on negotiated contract and spot rates. Its safety floor still binds: under Section 30, now 49 U.S.C. 31139, a for-hire carrier hauling general freight across state lines in a truck of 10,001 pounds or more must carry at least $750,000 in liability coverage, and $1 million or $5 million for many hazardous loads (49 CFR 387.9).
Why it matters
The Act is the reason freight is a competitive market where brands and 3PLs can shop for rates, and also the reason every shipper should check a carrier's authority and insurance. Before 1980, published tariffs set most truck rates and new carriers struggled to get licensed. After it, thousands of carriers entered, truckload rates fell, and carriers began selling contract logistics, the start of the 3PL industry. For example, before giving a load to a new truckload carrier found on a load board, look up its USDOT number on FMCSA's site to confirm active authority and at least $750,000 of insurance on file. That check takes two minutes and avoids an uninsured loss.
Events
Related laws
Sources
Not legal advice.