Delivering Goods to Market
[
Highlights]
O
ther than perhaps being bothered by large trucks on the highway or delayed by freight trains at railway crossings, most Americans probably pay little attention to the freight transportation sector. Yet just-in-time delivery for manufacturing, retail and food distribution, and doorstep delivery of goods ordered over the Internet would not be possible without this remarkable and efficient system.
The scale of annual freight movement is extraordinary. Several million trucks, three-quarters of a million rail cars, thousands of barges and ships, and thousands of miles of pipeline move more than 14,000 ton-miles of freight every year for every person in the country. The value of goods exported and imported by freight carriers equals nearly $2 trillion annually (Bureau of Transportation Statistics, Pocket Guide to Transportation, 2004, Table 22).
Among the first major federal agencies spawned by the Industrial Revolution was the Interstate Commerce Commission (ICC), which for more than 90 years regulated routes, carriers, and commodities moved, initially by rail, and beginning in the 1930s for other modes. The federal deregulation of motor carriers and railroads in the 1980s, which phased out ICC, led to increased competition and greater efficiency of surface freight movement.
During the last two decades, the introduction of supply chain logistics has revolutionized freight transportation. Goods that were formerly shipped from factory to warehouse to final destination are now bypassing intermediate transshipment points; the result is lower handling and transportation costs.
Although the federal government has relinquished some of its control over surface freight movement, federal and state agencies still have substantial influence through their roles in such areas as providing and maintaining infrastructure, regulating vehicle dimensions and weights, inspecting vehicles, and setting standards for operators. The federal and state governments are extensively involved in maritime freight as well—for example, through financing ports, dredging harbors and channels, and providing vessel traffic management and safety services. The work of TRB committees has informed government policies related to two key aspects of delivering goods to market: expanding freight capacity and enhancing freight productivity.