United Parcel Service of America - Page 96




                                       - 81 -                                         

          its operating ratios played an important role in obtaining rate             
          increases.                                                                  
               We do not believe that petitioner shifted EVC income to OPL            
          in order to justify raising its rates.  The 90-percent operating            
          ratio was a standard set by petitioner rather than a Federal or             
          State regulatory mandate.  The Motor Carrier Act of 1980 (MCA),             
          Pub. L. 96-296, 94 Stat. 793, provided for a Zone of Rate Freedom           
          (ZORF) for motor common carriers and freight forwarders.  ZORF              
          allowed for the filing of rate increases up to 10 percent above             
          the rate in effect 1 year before the effective date of the                  
          proposed increase or a decrease of as much as 10 percent below              
          the lesser of the rate in effect on July 1, 1980, or the rate in            
          effect 1 year before the effective date of the proposed rate.               
          See MCA sec. 11, 94 Stat. 801.40  Petitioner did not offer any              


               39(...continued)                                                       
          ratio is equal to a 10-percent operating margin.                            
               40The pertinent portion of the Motor Carrier Act of 1980,              
          Pub. L. 96-296, sec. 11, 94 Stat. 801, provided:                            
               ZONE OF RATE FREEDOM FOR MOTOR CARRIERS OF PROPERTY AND                
               FREIGHT FORWARDERS                                                     
                    Sec. 11. Section 10708 of title 49, United States                 
               Code, is amended by adding at the end thereof the                      
               following new subsection:                                              
                    (d)(1) Notwithstanding any other provision of this                
               title, the Commission may not investigate, suspend,                    
               revise, or revoke any rate proposed by a motor common                  
               carrier of property or freight forwarder on the grounds                
                                                             (continued...)           




Page:  Previous  71  72  73  74  75  76  77  78  79  80  81  82  83  84  85  86  87  88  89  90  Next

Last modified: May 25, 2011