In the arteries of the U.S. economy, freight transportation plays a vital role. Yet for decades, America's freight system has operated as a patchwork of disconnected modes with poor coordination, resulting in inefficiencies and rising costs. The challenge facing Congress is how to transform these isolated networks into a seamless, high-performing national logistics system.
Congressional Scrutiny and Field Work
Before their summer recess, members of the House Transportation and Infrastructure Committee's "21st Century Freight Transportation Panel," led by Chairman John J. Duncan Jr., conducted site visits to FedEx's Memphis hub and key intermodal ports. The fact-finding mission aimed to understand logistics' role in the national economy and gather industry perspectives.
At the Port of Memphis — the nation's fourth-largest inland port — the delegation received briefings about inland waterway challenges. Unlike container ports like Los Angeles/Long Beach, Memphis primarily handles bulk cargo. The group then traveled to West Memphis for discussions with transportation and business leaders from Arkansas and Tennessee about freight system obstacles.
Following the tour, Rep. Duncan emphasized that transportation efficiency directly impacts every American's daily life. With shipping costs representing up to 10% of product expenses, infrastructure bottlenecks ultimately increase consumer prices. He noted that studying Memphis' successful freight hub could reveal replicable best practices while highlighting systemic challenges.
Industry Frustrations and Funding Realities
While some dismiss congressional tours as political theater, logistics professionals acknowledge these listening sessions serve some purpose. However, they stress that substantive work begins when legislators return to their desks in September.
"Supporting infrastructure is a no-risk proposition," said Mike Regan, president of TranzAct Technologies and chair of NASSTRAC's advocacy committee. "What we're seeing now is plenty of camera-ready positioning but no substantive plan for funding."
Regan speaks from experience. Last year, he helped organize a "fly-in" lobbying effort to educate Congress about the importance of fully funding long-term transportation legislation. Despite these efforts, lawmakers only produced a 20-month highway bill that essentially maintained previous spending levels.
While preferable to nine previous short-term funding patches, Regan argues this stopgap measure fails to address America's deteriorating infrastructure needs. The expired bill, he notes, was merely a placeholder for what's truly needed: a comprehensive, multiyear authorization with innovative revenue streams.
"The challenge is converting this support into tangible action and selling it to constituents," Regan explained. "For all Congress's preaching about this issue, my response is: 'So what? What happens next? How do we pay for it?'"
Industry leaders privately urge Congress to pass a properly funded 4-6 year highway bill, enabling construction firms and local planners to make long-range decisions. Regan proposes a three-pronged solution to reduce congestion, minimize delays, and modernize infrastructure:
1. Long-term planning: "We need a lasting solution. These continuing resolutions and short-term funding approaches don't help. Road projects require three, five, sometimes ten years of planning."
2. Reframing infrastructure spending: "This isn't budget-busting expenditure — it's investment. We're already paying thousands in wasted fuel and lost productivity from outdated roads. A competitive supply chain requires first-class infrastructure."
3. Funding reform: The most pressing issue for the $256 billion highway bill renewal is financing. The current federal fuel tax (18.4¢/gallon gasoline, 23.4¢/gallon diesel, unchanged since 1993) has lost over 60% of its purchasing power to inflation. More fuel-efficient vehicles compound the problem.
"Relying on fuel taxes to fund the Highway Trust Fund is absolutely asinine," Regan stated. "We must consider alternatives — mileage-based user fees, variable tolling. We're already paying these costs through delays and bottlenecks."
The Corporate Perspective
UPS Chief Operating Officer David Abney understands these costs intimately. Testifying before Congress, the executive whose company delivers 16.3 million packages daily emphasized logistics' critical role in economic success.
"Logistics can optimize movement between points, but it can't improve the underlying infrastructure," Abney told the freight panel. "Modernizing our roads, airports, rails and ports requires congressional action. Until then, logistics gains will stagnate."
Abney identified systemic flaws hindering economic recovery and global competitiveness: "Our freight system was built in silos and stitched together. To reach new efficiency levels, we must transition from patchwork to network."
Leadership Changes and Future Prospects
The confirmation of former Charlotte Mayor Anthony Foxx as Transportation Secretary offered some optimism. As mayor, Foxx championed a multi-billion dollar airport expansion to boost his city's global competitiveness.
"Given his commitment to infrastructure investment in Charlotte, there's reason for optimism," Regan acknowledged. But he reiterated the fundamental challenge: "Everyone wants better roads, but nobody wants to pay for them."
With the MAP-21 surface transportation authorization expiring in late September — six weeks before midterm elections — few expect comprehensive legislation soon. At minimum, observers anticipate temporary funding measures until post-election legislating begins.
Blueprint for a National Logistics Network
Synthesizing these perspectives reveals key requirements for building an efficient, interconnected freight system:
• Sustainable funding: Multi-year authorization with stable financing enables proper planning.
• Diversified revenue: Moving beyond fuel taxes to mileage fees, tolling and other innovative mechanisms.
• Strategic investment: Prioritizing projects that reduce congestion and supply chain costs.
• Intermodal coordination: Breaking down silos between transportation modes.
• Technology integration: Implementing IoT, AI and data analytics to optimize logistics.
Only through such comprehensive efforts can America transform its fragmented freight system into the high-performance network needed to drive economic growth and maintain global competitiveness.