This is an interim report that examines the potential impacts in Washington State resulting from the adoption of the Motor Carrier Act of 1980 and the Staggers Rail Act of 1980. Adoption of the two have set aside years of rigid regulation of interstate freight movement and granted new latitudes of freedom to shippers and transportation providers. Information was obtained by surveying and interviewing shippers and freight transportation providers throughout the state. Initial indications are that impacts resulting from deregulation have been slow to emerge due to suppressed economic conditions. The study projects that as economic conditions improve and principles have time to adjust to the new laws, discernible impacts will occur.