Skip to content
Search AI Powered

Latest Stories

newsworthy

Road congestion costs truckers $27 billion per year in lost time, extra fuel, DOT report says

Total passenger-car, truck delays hit $1 trillion a year, report finds.

Road traffic congestion costs the trucking industry an estimated $27 billion a year because of lost time and extra fuel consumption, the Department of Transportation said yesterday in releasing its National Freight Strategic Plan.

The shipping delays caused by congested roads and highways add billions of dollars in costs by raising prices on a massive array of products, DOT said. The agency did not quantify the costs to consumers arising from congestion-related delays.


All told, the annual cost of congestion, including passenger-car delays on roads shared with trucks, is estimated at $1 trillion, or roughly seven percent of U.S. economic output, DOT said.

In 2011, increases in truck and passenger-vehicle traffic regularly impacted 10 percent of the 161,000-mile National Highway System, which includes the 47,000-mile Interstate Highway System, the DOT report said. By 2040, that figure will rise to 34 percent of the national system unless steps are taken to reverse the trend, according to the report.

Currently, about 13,500 miles of highway system regularly slow below the posted speed limits, and an additional 8,700 miles experience stop-and-go conditions, the report said. The report called for the implementation of more and better transit options, greater intermodal connectivity, and more deployment of information technologies to help resolve the congestion problem.

The 143-page draft report shed some economic light on the congestion issue, something that has long proved elusive. Few would deny, however, that it is a problem. For example, Bill Matheson, president of intermodal and logistics services for Schneider National Inc., the Green Bay, Wis.-based truckload and logistics giant, said in a recent e-mail that congestion in the Chicago market results in a 5- to 10-percent reduction in the company's drayage productivity, relative to other U.S. markets. In the report, DOT called for a dedicated funding mechanism exclusively for freight projects, an initiative that's been part of proposed Congressional legislation to fund the federal transport system for a multiyear period.

DOT has made available a page on its web site for public comment on the draft. The URL is www.transportation.gov/freight/share-your-ideas.

The Latest

More Stories

screenshot of map of shipping risks

Overhaul lands $55 million backing for risk management tools

The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.

The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.

Keep ReadingShow less

Featured

Report: Five trends in AI and data science for 2025

Report: Five trends in AI and data science for 2025

Artificial intelligence (AI) and data science were hot business topics in 2024 and will remain on the front burner in 2025, according to recent research published in AI in Action, a series of technology-focused columns in the MIT Sloan Management Review.

In Five Trends in AI and Data Science for 2025, researchers Tom Davenport and Randy Bean outline ways in which AI and our data-driven culture will continue to shape the business landscape in the coming year. The information comes from a range of recent AI-focused research projects, including the 2025 AI & Data Leadership Executive Benchmark Survey, an annual survey of data, analytics, and AI executives conducted by Bean’s educational firm, Data & AI Leadership Exchange.

Keep ReadingShow less
aerial photo of port of miami

East and Gulf coast strike averted with 11th-hour agreement

Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.

The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.

Keep ReadingShow less
Logistics industry growth slowed in December
Logistics Managers' Index

Logistics industry growth slowed in December

Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.

Keep ReadingShow less
pie chart of business challenges

DHL: small businesses wary of uncertain times in 2025

As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.

However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).

Keep ReadingShow less