May/June 2006 · Vol. 69 · No. 6
May/June 2006
Guest Editorial
Meeting the Freight Challenge
The United States moves an astounding quantity of goods. According to the Federal Highway Administration's (FHWA) Freight Analysis Framework, nearly 17 billion tonnes (19.5 billion tons)
of freight worth approximately $13.1 trillion were moved in 2002, the year for
which the most current and comprehensive data are available. This volume is a mix of domestic goods and
a large and growing international trade that translates into 168 kilograms (370
pounds) of goods moved daily for each
U.S.
resident. The
U.S.
gross domestic product in 2002 was approximately $10 trillion,
and 23 percent of it was attributable to international trade, reflecting unprecedented global connectivity.
Forecasts indicate that freight volumes will continue to grow, particularly in
international shipments.
The upside is that these volumes
represent a robust and growing economy. The downside is that they are
contributing to and being affected by capacity constraints and congestion in
the transportation system. Traffic congestion imposes costs on shippers,
consumers, and the environment. Given current and predicted constraints on physical capacity,
finding ways to improve the efficiency of moving freight within the
United States
and to and from other nations
is a significant challenge. It is one that must be met, however, because the
efficient movement of goods is critical to the country's economic well-being.
None of the respective players has the tools—or the authority—to meet the challenge alone. Finding ways to move
goods efficiently will involve the combined effort of all levels of government and the private sector. Pursuing such collaboration led the U.S. Department of
Transportation (USDOT) to develop a Framework for a National Freight Policy.
The framework for a national
policy is composed of seven objectives, one of which is to improve operation of the existing freight transportation system. To better understand
current and evolving freight operations and where opportunities for improvement
exist, USDOT is working with a broad range of partners, including the Intermodal
Freight Technology Working Group (IFTWG), a public-private partnership. A few years ago, IFTWG
extensively mapped the physical movement of goods through various supply chains
along with the associated information transfer.
Freight movement, particularly
international shipping, involves a complex exchange of information between
multiple entities (governmental and commercial) associated with the transfer of
goods within and between modes of transportation. Following the mapping effort, IFTWG
determined that the information transfer connected with the physical movement
of goods is a critical juncture between operations and technology, where
improvements in speed, accuracy, and visibility could bring significant gains
in efficiency. The Electronic
Freight Management (EFM) program is a direct result of that effort and specifically
targets information exchange.
The EFM program is a USDOT-sponsored research effort in intelligent transportation systems that partners with freight-related industries to improve the efficiency, safety, and security of goods movement. The EFM program seeks
to demonstrate the use of a common message set that enables electronic transfer
of shipment information between supply chain partners and provides all partners
with access to that information in real time. In what is a genuinely collaborative effort, the EFM stakeholders from
the private sector are The Limited Brands (a chain of fashion stores) and its supply partners in Asia
and the United States.
The government partners are USDOT, the Transportation Security Administration, and U.S. Customs and Border Protection.
The EFM program is emblematic of how
working together can help meet the freight challenge. It marries industry and
government priorities and objectives in a way that leverages collective
experience, shared investment, and common effort.
Anthony T. Furst
Director, Office of Freight Management and Operations
Federal Highway Administration
Other Articles in this issue:
Road Users Can Grow Old Gracefully—With Some Help
The Evolution of Advanced Research
Following the Flow
Acting Now, Building for the Future
The Battle of Its Life
A High-Tech Route for Freight Efficiency
Gearing Up for an Aging Population