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About the Center
For several decades, firms have optimized their networks of suppliers to minimize inventory and increase responsiveness to customers. These actions have been an economic boon and were predicated on inexpensive and efficient freight transportation. However, several factors are conspiring to erode these gains:
- The growth in international trade is overwhelming intermodal freight capacity in the U.S. and other countries.
- Congestion at critical ports, border crossings, transfer points, and urban areas is slowing the flow of freight throughout North America and major gateway locations worldwide.
- Safety and environmental concerns including noise and air pollution make expansion of the freight transport system difficult.
- Labor shortages and security concerns compound capacity constraints.
- Analysis of environmental, economic, and social impacts of supply chain policy and management
While it presents all these problems, the globalization of the world economy – leading to the rapid growth of international goods movement – is essential to world economic health. RAND is committed to engaging in policy research to overcome these obstacles to the benefit of many industries in many countries.
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