Freight Management

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Freight Management 2016-12-26T19:22:11+00:00

The U.S. economy depends on freight transportation to link businesses with suppliers and markets throughout the nation and the world. For example, American farms and mining companies reach out to customers across and beyond the continent, using inexpensive transportation to compete against farms and mines in other countries. Domestic manufacturers increasingly use distant sources of raw materials and other inputs to produce goods for local and distant customers, all of which require efficient and reliable transportation to maintain a competitive advantage in a global marketplace.

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Wholesalers and retailers depend on fast and reliable transportation to obtain inexpensive or specialized goods through extensive supply chains. In the expanding world of e-commerce, households increasingly rely on freight transportation to deliver purchases directly to their door. Even when a large part of goods ordered online for home delivery are delivered by parcel carriers like UPS and FedEx, they rely on national common carriers to get the freight delivered from the manufacturers and suppliers to the warehouses and order processing centers. A good example would be when people order household products for home delivery from Amazon Prime. The goods may be delivered by UPS or Amazon local couriers to American households. But it is very likely that the products arrived to Amazon FBA (Fulfillment by Amazon) centers via national freight carriers.

The U.S. economy requires effective freight transportation to operate at minimal cost and respond quickly to demand for goods. As the economy grows, the demand for goods and related freight transportation activity will increase. Current volumes of freight are straining the capacity of the transportation system to deliver goods quickly, reliably, and cheaply. Anticipated long-term growth of freight could overwhelm the system’s ability to meet the needs of the American economy unless public agencies and private industry work together to improve system performance.

Freight Management Example by Rapid Express Freight

In the following pages we will quote parts of a report by the U.S. Department of Transportation, Federal Highway Administration (FHWA).

This report provides an overview of freight movement on the U.S. transportation system today and in the future. It discusses where the largest freight flows are concentrated and the pressures that existing and anticipated freight volumes place on the system. Special attention is given to freight congestion and its effects on highways, railroads, and waterways. The economic costs to shippers, carriers, and the overall economy also are examined. In addition, the report describes government and private sector efforts to improve freight transportation and mitigate the safety and environmental effects of growing volumes of freight. Finally, the report outlines a policy framework to help further discussion on ways to improve the freight system

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