Reducing Transportation Costs By Switching From Roadways To Waterways
A report by the U.S. Maritime Administration suggests that freight tonnage will increase by 73 percent by 2035. Currently, only 13 percent of freight moves along waterways. The report makes an example of Europe allocating 40 percent of its freight transportation to waterways to defend the claim that improving waterway travel can be beneficial to American freight shipment.
More than two-thirds of freight is transported by means of trucks, but water and rail options are more environmentally friendly options for transportation. In times when fuel costs are on the rise, companies should seek alternative methods of transportation that can save money, as much of the transportation expense cannot be passed onto the customer.
The U.S. Government Accountability Office (GAO) reported that trucking costs that were not passed on to consumers were six times greater than the costs generated by rail transportation and more than nine times the cost of waterway transport. The Consolidated Appropriations Act gave $7 million in funds to a waterway grant program last year to aid in the development of inland waterways.