The US market for logistics was estimated to be around $1.5 trillion in 2013, with the transportation segment
accounting for around $1 trillion of that. The figure for the total market is higher if a more
flexible definition of logistics is assumed (e.g., including packaging, security and more).
Moving products from manufacturing sites to warehouses and distribution centers is a critical
aspect of most supply chains. Shipping internationally and shipping to the final customer add
even greater complexity to a company’s distribution and transportation network.
Moreover, in today’s world of 1-day shipping options when purchasing products from sites such as
Amazon.com, customers have sky high expectations regarding the ease of ordering and speed
of delivery. This will only get worse in the coming decade as drone delivery systems take root.
US Transportation Sector Analysis
Due to its disproportionate importance, the transportation sector needs to be examined in
greater detail. The main methods to transport goods with the US are:
Trucking -- by far the most important
Railroads -- important for moving coal, metal ores and grains
Water -- much more important if considering international imports and exports (not covered here)
Air -- includes express delivery services
Key Trends in the Logistics and Transportation Sector in the US
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Potential decline in US energy costs. This is hard to fathom, but booming oil and gas
production from shale resources, improved fuel efficiency of motor vehicles, and increasing
renewable energy production are all combining to suggest a potential long-term decline in
energy prices in the US after major increases in the past decade. The US is now expected to
becoming energy self-sufficient in the coming decades. This would have been considered
impossible even as recently as 2010.
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Stricter government regulations governing emissions and carbon footprints will adversely
impact the transportation sector and raise costs substantially.
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Rising demand for locally produced goods from better educated environmentally aware
customers will alter logistics and supply chains.
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Continuing shift from suburban to urban living will require logistics companies to prepare for
issues such as traffic congestion and alternate delivery mechanisms.
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Continued improvements in efficiency in intermodal freight transportation (i.e., the
movement of freight in an intermodal container using multiple modes of transportation
without any handling of the freight itself when changing modes).