How will e-commerce growth impact our transportation network? Final report.
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2017-08-01
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Edition:Final Report
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Abstract:The steady growth in online retailing continues to rattle long-established business models and the
shopping patterns of consumers (who are also taxpayers, voters, and drivers). Those consumers
are increasingly choosing shorter delivery cycles—opting in some cases to receive their goods
within hours rather than days.
The demand for more immediate delivery requires retailers to be more nimble and radically
changes warehousing logistics. Sellers are augmenting their reliance on million-plus square foot
facilities, adding smaller sorting and delivery hubs and locating them closer to their customers.
Moreover, while retailers continue to employ traditional delivery services like FedEx, UPS, and
USPS, they also are looking to independent contractors who use personal vehicles to transport
packages in the same way that transportation network companies like Uber ferry passengers.
These changes can directly impact our transportation system, and they bring to light a number of
challenges for transportation planners, operating agencies, and policy makers. For instance:
- Evolving delivery operations cloud the picture of how carriers are regulated. Much of the
regulation of motor carriers in Texas relates directly to the weight capacity of the vehicles
transporting cargo. Most traditional delivery operations fall under this statutory
description, requiring certificates of operating authority from the Federal Motor Carrier
Safety Administration. The use of personal autos by people acting as independent
contractors may meet the basic definition of a motor carrier (transporting cargo for hire),
but these contractors are not required to register as such because of the vehicles’ smaller
size. Consequently, they avoid a number of safety and operational requirements.
- Changes in urban logistics will impact roadway system use and needs. The further
expansion of e-commerce will increase warehousing needs. These facilities, located
increasingly within urban areas, require interstate highway access to accommodate more
frequent daily truck traffic. Even with increased automation, these centers will require
larger workforces than traditional warehouses would, creating more trips by employees
coming from areas with limited transit service options and working multiple shifts.
- Personal vehicle use in express delivery growth will affect traffic patterns. Growing
numbers of express deliveries involve personal vehicles, mirroring the model of
transportation network companies, which may increase the number of non-peak-period
trips into residential areas. These trips may not be captured in current regional travel
demand models that help to forecast system needs, so planning agencies will need to
adjust their models to ensure that those needs are more accurately projected.
E-commerce and its associated delivery demands will likely continue to disrupt traditional
business practices. Planners and policy makers alike will need to closely monitor these changes
to effectively plan and operate a transportation system that meets the needs of a growing
population of road users and consumers.
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