Imagine the journey of your online purchase—from the moment you click "buy" until it arrives at your doorstep. This complex process involving trucks, ships, planes, and delivery personnel relies entirely on an efficient logistics system. But what will this system look like in the coming years? The answer largely depends on the upcoming US federal surface transportation authorization—a critical policy document that will set the course for future transportation development.
Policy Outlook: Experts Analyze the New Authorization
At the SMC3 JumpStart 2021 conference, three leading freight experts examined the potential impacts of the new surface transportation authorization under the current administration:
- Tom Jensen , Senior VP of Transportation Policy at UPS, focused on operational impacts and stakeholder balance.
- Randy Mullett of Mullett Strategies LLC, analyzed the political process and potential obstacles.
- Dan Furth , former President of the National Tank Truck Carriers, addressed sector-specific concerns regarding safety and efficiency.
Mullett noted that while infrastructure progress is possible this year, the definition of "infrastructure" is evolving. The Democratic-controlled Congress and White House now include broadband and energy networks in their infrastructure vision, as seen in Representative Peter DeFazio's COVID-19 relief proposal.
Funding Challenges: Fuel Tax vs. Mileage Tax
The experts debated potential funding mechanisms for transportation projects:
Furth highlighted that Transportation Secretary Pete Buttigieg may propose the first federal fuel tax increase since 1993, while Mullett expressed skepticism about implementing a Vehicle Miles Traveled (VMT) tax in the near term. Mullett predicted temporary funding from general funds until Congress establishes a sustainable solution.
"The trucking industry isn't opposed to VMT in principle," Mullett explained, "but concerns arise when every municipality could implement its own pricing schemes for congestion or road usage."
Industry Impacts and Future Trends
Jensen observed that while bipartisan infrastructure proposals exist, the final authorization might prioritize climate and sustainability over traditional transportation concerns. This shift presents both challenges and opportunities for logistics companies.
Key takeaways for the logistics sector:
- Prepare for expanded infrastructure definitions that may redirect funding
- Invest in sustainable technologies to meet environmental requirements
- Engage in policy discussions through industry associations
Emerging Logistics Trends
Beyond policy changes, several technological and operational trends will shape future logistics:
- Automation: Advanced robotics for warehousing and last-mile delivery
- Electrification: Transition to zero-emission freight vehicles
- Data Integration: AI-driven route optimization and demand forecasting
- Resilience Planning: Supply chain diversification strategies
The experts agreed that successful policy implementation requires bipartisan cooperation. As Furth concluded, "After years of inaction, America's 47,000 structurally deficient bridges demand attention—infrastructure means jobs, however you define it."