America’s dependence on shipping and freight transportation means that most everyday goods and items cross state lines. Shipping is thus a vital part of America’s economy, and a competitive market exists to provide shippers with efficient, reliable services while keeping prices low. The vast majority of goods shipped in the U.S. are moved by truck, with railroads playing a more minor but still essential role.
Freight Industry Today
Technology is a driving force making the freight industry more competitive, environmentally friendly and efficient. For example, load boards allow truckers to fill more of their vehicles reducing the number of empty miles their vehicles travel. They can search online load boards for shipping work, click here to learn more.
The history of shipping and freight transportation in America
The first use of specialized transport systems for moving goods long distances occurred during the United States’ colonial years with the Erie Canal’s development. The canal was completed in 1825 and significantly improved cross-country trade by linking New York and New England ports to those on the Great Lakes. Broadening this system in the 1840s with these same waterways (and others) fostered much more efficient freight transport by railroads later that decade.
The importance of shipping and freight transportation to the economy
From the first use of water and rail transportation to shipping goods across state lines, freight transport has grown into a major industry. The transportation of goods by truck and rail to markets, factories, and ports across the United States creates jobs, allows for the spread of production sites geographically, and provides consumers with goods at low prices. To put this into perspective, in 2019 according to the Bureau of Transport Statistics, freight transportation added $1,298.1 billion to the US GDP.
The challenges facing shipping and freight transportation
The shipment of goods by truck and rail has progressed from rugged, often dangerous routes at the start of the 20th century to smooth, efficient routes today. However, the very nature of shipping and freight transportation makes it susceptible to labor shortages and other issues hindering its efficiency.
Shippers, carriers, and the trucking industry face a challenging business environment. The independent nature of truck drivers enables them to choose which carrier they will work for, so the driver can switch companies if he or she has a complaint about wages or working conditions. The trucking industry is also obviously subject to spikes in gas prices.
The future of shipping and freight transportation in America
The future of shipping and freight transportation continues to be a strong factor in the U.S.’s economy, as trucking and railroads are expected to be essential components of the nation’s freight transportation system. The logistics industry is constantly developing new ways for goods to be moved, making it a dynamic and vital market for shippers and carriers.
Worldwide shipping of goods and transportation through the United States
The shipment of goods across borders worldwide is essential to American trade in today’s global economy. In fact, the U.S. has become a significant exporter by shipping goods to additional countries via the Panama Canal or overland from Canada or Mexico.
The importance of these industries to the economy, challenges facing shippers, carriers, and the trucking industry in particular, and the industry’s continued development into an essential part of American trade all make this a vital industry.