# Encyclopedia of Transportation: Social Science and Policy

Encyclopedias

### Edited by: Mark Garrett

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Mark Garrett holds a Ph.D. in urban planning from the University of California, Los Angeles (UCLA) Luskin School of Public Affairs and a J.D. from the UCLA School of Law. For a number of years he was a practicing attorney in California specializing in land use, transportation, and environmental issues. He is currently serving as a member of the research faculty in the Lewis Center for Regional Policy Studies at UCLA and also teaches courses in the Department of Urban Planning. Garrett is the co-author with Martin Wachs of Transportation Planning on Trial: The Clean Air Act and Travel Forecasting, and has contributed to articles in the UCLA Journal of Environmental Law and Policy, the UCLA journal Critical Planning, the Berkeley Planning Journal, the Transportation Research Record, and the Journal of the American Planning Association.

Garrett has been an adjunct professor in the Saint Louis University (SLU) School of Law and a faculty member in the Department of Policy Studies in SLU's College of Education and Public Policy. He has also taught at the Ohio State University, the University of Michigan, the University of Illinois, and Virginia Commonwealth University.

His current research focuses on sustainability and legal and social equity aspects of urban land use and transportation planning. He presently resides in Los Angeles, California.

## List of Contributors

• Baher Abdulhai

University of Toronto

• Stavros Afionis

University of Leeds

• Ajay Agarwal

Queen's University

• Dorian R. Aguilar

California State University, Northridge

• Whitney Airgood-Obrycki

Ohio State University

• Bayarma Aleksandr

Southern California Association of Governments

• Shelley Alexander

University of Calgary

• Danya Alexander

Independent Scholar

• Georgia Alfantopoulou

Hellenic Institute of Transport

• Paulo Rui Anciães

Independent Scholar

• Donald N. Anderson

University of Arizona

• Karen Anderton

Oxford University

• Constantinos Antoniou

National Technical University of Athens

• Manuel D. Araujo

California State University, Northridge

• Carol Atkinson-Palombo

University of Connecticut

• Jeremy E. Baker

Independent Scholar

• Mark Barnes

Morgan State University

• John H. Barnhill

Independent Scholar

• Daniel L. Berek

Independent Scholar

• Christina Bernardo

Independent Scholar

• Chandra Bhat

University of Texas

• Patrick Bonnel

Ecole Nationale des Travaux Publics de l'Etat

• Kanok Boriboonsomsin

University of California, Riverside

• Sarah E. Boslaugh

Kennesaw State University

• Mark E. Braun

State University of New York at Cobleskill

• Stacey Bricka

Texas A&M Transportation Institute

• Timothy J. Brock

University of Kentucky

• Ralph Buehler

Virginia Polytechnic Institute and State University

École Nationale des Travaux Publics de l'Etat

• Angela Carpenter

University of Leeds

• Juan Antonio Carrasco

• Oded Cats

Royal Institute of Technology

• Nelson D. Chan

University of California, Berkeley

• Zhenhua Chen

George Mason University

• Xueming Chen

Virginia Commonwealth University

• T. Donna Chen

University of Texas at Austin

• Guangqing Chi

Mississippi State University

• Raymond Douglas Chong

Independent Scholar

• Evangelia Chrysohoou

Hellenic Institute of Transport

• Julie Cidell

University of Illinois at Urbana-Champaign

• Michael E. Cline

Rice University

University of California, Berkeley

• Phillip G. Cole

MWH Global

• Thomas J. Cova

University of Utah

• William B. Coyne

Embry-Riddle Aeronautical University

• Christopher Cusack

Keene State College

• Kate J. Darby

Allegheny College

• Alexa Delbosc

Institute of Transport Studies, Monash University

• Joseph Dewey

Pennsylvania Highlands College

• James F. Douglass

Independent Scholar

• Tamer E. El-diraby

University of Toronto

• Aimee Dars Ellis

Ithaca College

• Leslie Elrod

University of Cincinnati

• Samah El-Tantawy

University of Toronto

• Ryan Falconer

Independent Scholar

• Jonathan Michael Feldman

Stockholm University

• John Felleman

State University of New York, College of Environmental Science and Forestry

• Cindy Ferraino

Independent Scholar

• Isaiah Flair

Independent Scholar

• Jennifer M. Flynn

Center for Urban Transportation Research, University of South Florida

• Philine Gaffron

Hamburg University of Technology

• Laurie A. Garrow

Georgia Institute of Technology

• Eric Goldwyn

Columbia University

• Michael R. Greenberg

Rutgers, The State University of New Jersey

• John R. Griffin

Embry-Riddle Aeronautical University

• Henrik Gudmundsson

Technical University of Denmark

• Owen D. Gutfreund

Hunter College of the City University of New York

• Ahsan Habib

Dalhousie University

• Ralph P. Hall

Virginia Polytechnic Institute and State University

• Colin Michael Hall

University of Canterbury

• Andrea Hamre

Virginia Polytechnic Institute and State University

Ohio State University

• Gavin D. J. Harper

Cardiff University

• H. Gene Hawkins, Jr.

Texas A&M University

• Kingsley E. Haynes

George Mason University

• Jason A. Helfer

Knox College

• David S. Heller

Independent Scholar

• Marion J. Herbert

Independent Scholar

• Linnea Hermansen

Stockholm University

• Susan Hotle

Georgia Institute of Technology

• Kent L. Hurst

Wesley College

• Panagiotis I. Iordanopoulos

Independent Scholar

• Hiro Iseki

University of Maryland

• Beth Jarosz

Independent Scholar

• Marilyn Johnson

Monash University

• Tim Jones

University of Oxford

• Steven Jones

• David H. Kaplan

Kent State University

• Stan Karanasios

University of Leeds

• Sarah M. Kaufman

New York University

• John Kelmelis

Pennsylvania State University

• Sherif Kinawy

University of Toronto

• David A. King

Columbia University

• Katherine E. King

Duke University

• Kara Kockelman

University of Texas at Austin

• Douglas Kolozsvari

University of Michigan

• Bill Kte'pi

Independent Scholar

State University of New York, Albany

• Richard W. Lee

San José State University

• Lewis Lesley

Liverpool John Moores University

• Christopher Leslie

Polytechnic Institute of New York University

• L. L. Lundin

Independent Scholar

• Ian MacLachlan

University of Lethbridge

• Liliana Magalhães

University of Lisbon

• Kaitrin Mahar

Old Dominion University

• James J. Mammarella

Independent Scholar

• Nancy E. Mammarella

Independent Scholar

• Michael Manville

Cornell University

• Greg Marsden

University of Leeds

• Allan Mason

Independent Scholar

• Derlie Mateo-Babiano

University of Queensland

• D. J. Ann Mathews

• Bryan Matthews

University of Leeds

• Paul Metaxatos

University of Illinois at Chicago

• Donald S. Metscher, Sr.

Embry-Riddle Aeronautical University

• Joshua J. Miller

Independent Scholar

• Shari Parsons Miller

Independent Scholar

• Evangelos Mitsakis

Hellenic Institute of Transport

• Claudine J. Moutou

University of Sydney, Australia

• Stacey Mumbower

Georgia Institute of Technology

• Christophe Mundutéguy

French Institute of Science and

• Technology for Transport, Development

and Networks

• Enda Murphy

University College Dublin

• Sreekumar Nampoothiri

State University of New York, Albany

• Hazel Nash

University of Sussex

• Brice Nichols

University of Texas at Austin

• Mazdak Nik Bakht

University of Toronto

• Alexandros Nikitas

Chalmers Univesity of Technology

• Lenahan O'Connell

University of Kentucky

• Phillip O'Neill

University of Western Sydney

• Christopher E. Oxendine

George Mason University

• Athanasios A. Pallis

University of the Aegean

• Michael J. Parks

Pennsylvania State University

• Victoria A. Perk

Center for Urban Transportation Research, University of South Florida

• Jonathan Peters

City University of New York–College of Staten Island

• Eric Petersen

Independent Scholar

• Francesco Pilla

Trinity College Dublin

• Pascal Pochet

École Nationale des Travaux Publics de l'Etat

• Dorina Pojani

Delft University of Technology

• Elizabeth Rholetter Purdy

Independent Scholar

• Kathryn S. Quick

University of Minnesota

• Fiona Rajé

University of Birmingham

• Joana Ramalho

Catholic University of Portugal

• Luke Redmond

University College Dublin Earth Institute

• Vasco Reis

Technical University of Lisbon

• Wylene Rholetter

Auburn University

• Kevin T. Rigby

Embry-Riddle Aeronautical University

• John M. Robbins

Embry-Riddle Aeronautical University

• Geoff Rose

Monash University

• Sandra Rosenbloom

University of Arizona

• Josep Maria Salanova

Hellenic Institute of Transport

• Natalie R. Sampson

University of Michigan

• John Saunders

York University

• Robert J. Schneider

University of Wisconsin-Milwaukee

• Stephen T. Schroth

Knox College

• Susan A. Shaheen

University of California, Berkeley

• Shih-Lung Shaw

University of Tennessee, Knoxville

• Sharon Shewmake

Vanderbilt University Law School

• Yoram Shiftan

Technion–Israel Institute of Technology

• Thomas Sigler

University of Queensland

• Cecília Silva

Oporto University

• Yamini Jain Singh

University of Twente

• P. S. Sriraj

University of Illinois at Chicago

• Aruna Sivakumar

Imperial College London

• Mary Snow

Embry-Riddle Aeronautical University

• Richard K. Snow

Embry-Riddle Aeronautical University

• Reginald R. Souleyrette

University of Kentucky

• Robert N. Stacy

Independent Scholar

• Iraklis Stamos

Hellenic Institute of Transport

Delft University of Technology

Cardiff University

• Selima Sultana

University of North Carolina at Greensboro

• Yusak O. Susilo

KTH Royal Institute of Technology

• Joseph S. Szyliowicz

University of Denver

• Ken B. Taylor

New Orleans Baptist Theological Seminary

• Sudhir Thakur

California State University, Sacramento

• Cheryl A. Thole

Center for Urban Transportation Research, University of South Florida

• Nikolas Thomopoulos

University of Leeds

• Zeynep Toker

California State University, Northridge

• Manuel Trevino

University of Texas at Austin

• Marcella Bush Trevino

Barry University

• Monique Stinson Urban

Independent Scholar

• Tanu Priya Uteng

Independent Scholar

• David Vale

Technical University of Lisbon

• John Walsh

Shinawatra University

• Xiaokun Wang

Rensselaer Polytechnic Institute

• Kathy Warnes

Independent Scholar

Dalton State College

• Nigel Waters

George Mason University

• Gerard C. Wellman

California State University, Stanislaus

• Rachel Wexelbaum

St. Cloud State University

• Kenneth L. White

Johns Hopkins University

• Helen F. Wilson

University of Manchester

• Mintesnot G. Woldeamanuel

California State University, Northridge

• Liza J. Wright

California State University, Northridge

• Xinyue Ye

Kent State University

• Juita-Elena (Wie) Yusuf

Old Dominion University

• Gregory A. Zahornacky

Embry-Riddle Aeronautical University

• Wael Zatar

Marshall University

• Shanjiang Zhu

George Mason University

• Joe Zietsman

Texas A&M University System

• Petra A. Zimmermann

Ball State University

• Edmund Zolnik

George Mason University

## Introduction

We all rely on transportation. Whether it is flying to some faraway destination, taking a cruise, driving to work, bicycling through a park, or just walking around the block, we depend on a system of airports, harbors, railroads, highways, streets, and sidewalks to help get us where we need or want to go. Even without leaving our homes, we still depend on those who use transportation systems to deliver food to the grocery stores, consumer goods to local stores and shopping malls, and packages and mail to our front door. For the most part, all these systems, and more, require planning, construction, and maintenance, sometimes by private individuals and organizations but more often by various agents of government, whether at the local, state, national, or in some cases, international scale. None of us could survive unless legions of planners, policy makers, engineers, construction workers, air traffic controllers, drivers, ticket agents, road crews, police officers, school crossing guards, and many others worked tirelessly to keep the transportation network running smoothly and safely.

In addition to those who provide us with transportation systems, there are also many who study transportation systems and those who use them. They ask questions such as these: Where do people go? How do they get there? What types, or modes, of travel do they use? When are they most likely to travel? And perhaps most importantly, why do they travel? All these questions are important to improving the service that transportation systems provide, but there is another set of questions that also concern those who deal with the policy aspects of transportation—namely, how do transportation systems affect our daily lives, and how will they shape our future?

Transportation consumes land and nonrenewable resources, generates noise, air pollution, and waste material, and results in the injury or death of thousands of individuals annually involved in transportation-related accidents. Increasingly in the industrialized world, people live far from their place of work or where they can shop. Millions of people spend a good part of their days in transit—some stuck for hours in traffic congestion. For others, their lack of access to either private or public transportation limits their mobility and greatly reduces their opportunity to lead useful and productive lives. All these issues, and others at varying times and in varying degrees, concern social scientists and policy makers involved in transportation. Accordingly, this volume brings together the latest research and thinking about transportation planning and policy by some of the leading figures in the field.

A Brief History of Transportation Policy

People have always moved about from place to place, often by following animal tracks that over time become established roads. Mariners have long followed favorable winds and currents, passing their knowledge down to others. But, even conscious efforts to design and build transportation systems have a long history. The Phoenicians, Egyptians, Greeks, and Chinese all built harbors and canals to support long-distance trade. The Romans were renowned for constructing paved roads stretching across continents, as did the preconquest Peruvians.

The 19th Century. In North America, the desire of colonists to exploit their vast hinterlands led to the creation of the first National Road, an inconsistently built and maintained macadam pathway begun in 1811 at Cumberland, Maryland, and ultimately stretching through Pennsylvania, Ohio, and Indiana to Illinois—later U.S. Highway 40 and today more or less the route of Interstate 70—carrying settlers to Pittsburgh, Wheeling, Columbus, Indianapolis, and Terre Haute. At the beginning of the Industrial Age, steamboats carried passengers and freight deep into the new western territories after Fulton and Livingston's successful demonstration in 1807.

Forward-thinking entrepreneurs also developed canals to take goods to market, the Erie Canal completed in 1825 at a cost of $7 million connecting Albany and Buffalo, New York, being perhaps the most famous—and linking the growing port of New York City to the Great Lakes and the vast resources of the northwest—but scores of others, large and small, were constructed in Virginia, Ohio, Indiana, and elsewhere. They were, however, quickly superseded by the newest marvel, the steam locomotives, whose spreading tracks began knitting together cities and regions into an ever-expanding economic network. The meeting of the Union Pacific and Central Pacific Railroads at Promontory Summit, Utah, in 1869 completed the route selected by President Abraham Lincoln from Omaha, Nebraska, to Sacramento, California, forever joining the markets of the east to the west coast. Bridges of wood, iron, and later steel (the first use being the 1874 Eads Bridge in Saint Louis) spanning great rivers soon replaced ferry boats, making seamless travel possible across the nation. In the burgeoning industrial cities, omnibuses and steel-tracked horsecars carried workers from growing residential enclaves to their work in factories and towering office buildings in the emerging central business districts. By the height of the Industrial Age, the perfection of a practical electric motor and transmission lines (first put in service in Richmond, Virginia, in 1888) heralded the beginning of the streetcar era; trolleys and interurbans fanned out over the countryside, vastly expanding the size and shape of the modern city and setting the stage for its now characteristic pattern of sprawl. Often this took place with little or no government involvement beyond granting local franchises to transportation operators for ferries, streetcars, bridges, or toll roads (the Pennsylvania Turnpike began as a private toll road from Philadelphia to Lancaster in 1795), though other transportation systems like the Transcontinental Railroad mentioned previously required congressional funding. State and municipal regulation was likewise limited at first; some safety measures were adopted, and operators were typically charged with maintaining roadways under their control, but government was largely content to allow private enterprise to supply whatever the public desired in the way of transportation services. The 20th Century. All that began to change at the dawn of the 20th century. Even before the newfangled automobile came into widespread use, bicycle enthusiasts and rural farmers began a campaign to improve the deplorable condition of the vast majority of the country's highways and byways. (Europe already had a history of national support for road construction.) This Good Roads Movement put pressure on states and the federal government to grade and pave dirt roads, connect rural areas to cities, and establish a national network of interstate highways. Congress passed the first Federal Aid Road Act in 1916, which provided funding for rural post roads, followed by the 1921 Federal Highway Act, which expanded funding for federal-aid highways to be built by publically funded state highway departments once approved by the new federal Bureau of Public Roads. By 1923, the bureau had designated the complete federal-aid system, connecting every city over 50,000 in population, much of which would be completed by the late 1930s. Federal funds could not at the time be used on urban roadways, and so, the program was still a decidedly rural one, though in urban areas, traffic congestion was becoming an increasing concern. The first federal gasoline tax, a mere 1 cent per gallon, was passed in 1932 as a temporary revenue measure but proved so lucrative that it was easily renewed in 1933 under the Roosevelt administration, which also backed legislation to fund urban road projects. The Hayden–Cartwright Act of 1934 ended the prohibition on using federal aid funds in urban areas and designated urban secondary roads as part of the federal aid highway system, thereby providing routine federal transportation aid to urban areas. In 1939, General Motors Corporation sponsored a hugely popular exhibit called Futurama at the New York World's Fair, extolling the benefits of a safe, modern, high-speed national highway system and documenting the company's efforts in a promotional film titled To New Horizons, designed to build even more support for the project among the public and important policy makers. Perhaps not coincidently, also in 1939, President Roosevelt endorsed the federal Bureau of Public Road's master plan for a national system of limited-access roadways covering 27,600 miles and extending the routes directly into urban areas. This road network was to be accessed only at interchanges, grade separated from cross traffic and trains, and free of tolls. The new superhighways were to penetrate to the very heart of every major U.S. city, and larger metropolitan areas would have both inner and outer beltways. While widely popular, plans for the system were shelved while the nation struggled through the Great Depression and World War II. By 1944, interest in public highway projects as a way to ease the transition to a peacetime economy led to enactment of the Federal Aid Highway Act of 1944, which designated up to 40,000 miles of high-speed, limited-access freeways. The official routes, published in 1947, included 3,900 miles of highway extensions within urban areas and another 2,200 miles, also to be built within urban areas, seen as important to gaining urban political support for the highway program. In the years following World War II, these efforts bore fruit in the form of the 1956 Federal Aid Highway Act, which financed the now 41,000-mile National System of Interstate and Defense Highways. Signed into law by President Eisenhower, who as a young army officer had taken part in a two-month cross-country military convoy intended to highlight the poor conditions of the nation's roads, and who as World War II general saw firsthand the military and civilian potential of the German Autobahn, the legislation marked the beginning of the American freeway-building era. Congress increased the gas tax to 3 cents a gallon, placing these and other excise revenues in a Highway Trust Fund to be used exclusively for highway projects. Many of those inner-city freeways would become part of local urban renewal projects, frequently targeting poor and minority neighborhoods for removal and thus seriously tarnishing the freeway program's reputation. For returning veterans and other white citizens who qualified for low-interest home loans, though, the 1956 act and subsequent federal highway legislation literally paved the way to the suburbs and the American Dream. The American obsession with road building did not extend to providing urban mass transit, which unlike in Europe and elsewhere, was historically not seen as a government concern. Transit companies, then mostly privately owned and struggling financially after a brief surge in popularity during World War II, soon succumbed to the increasingly suburban and automobile-oriented lifestyle. Many bankrupt systems were eventually acquired by local governments, often with federal funds, as Congress began to haltingly address the growing transportation problems of urban areas. The U.S. government in the 1960s began requiring continuing and comprehensive transportation plans be developed as a coordinated part of an overall regional planning process designed to rehabilitate urban areas and used its discretionary power over federal funds to promote that goal by conditioning project approvals on metropolitan-wide plans developed though what came to be known as the 3C planning process. Metropolitan Planning Organizations (MPOs) became the primary bodies responsible for highway and public transit planning in urban areas. The Urban Mass Transportation Act of 1964 marked the first legislation to provide direct federal assistance for transit capital projects, authorizing discretionary grants for up to two-thirds of the net project costs of constructing or acquiring mass transportation facilities and equipment in areas that had completed their regional plans. The 1966 amendments to the act provided federal matching funds for planning, engineering, and design of urban mass transportation projects and acquisition of remaining private transit operations. By the early 1970s, with most private transit properties having been purchased and bus fleets modernized and upgraded, a shift occurred in federal policy toward greater emphasis on expanding mass transit, particularly rail construction, in response to environmental and other social concerns and as a tool to counteract urban sprawl. The Federal Aid Highway Act of 1973 introduced new flexibility in transit funding, significantly broadening the scope of MPO's responsibility to balance highway and transit spending. Since the mid-1970s, congressional transportation legislation has reflected a major shift in priorities toward addressing environmental concerns, beginning with the 1977 amendments to the Clean Air Act, which mandated greater coordination between transportation and environmental planning. The 1970s also ushered in an era of deregulation, particularly in the airline and passenger and freight railroad industries, generating greater competition but also raising concerns over the availability and quality of service, particularly in smaller market areas. The 1990 Clean Air Act Amendments significantly expanded efforts to curb transportation-related emissions by reducing the growth in automobile travel, in effect making pollution reduction the driving force behind transportation planning. This legislation was accompanied by the landmark Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991, intended to develop an economically efficient and environmentally sound national intermodal transportation system. ISTEA reinforced the planning requirements of the Clean Air Act by requiring a statewide transportation planning process that considers economic, energy, environmental, and social effects of highway and transit programs and projects. The acts require new, detailed, accurate analyses of the potential impacts of transportation improvements on congestion, travel, and land use but, most importantly, seek to coordinate planning over air, land, or sea, and for all modes of travel, whether by planes, trains, automobiles, transit, bicycles, or even walking. Current Issues What does the future hold for transportation policy and research? Environmental issues will undoubtedly continue to be at the forefront as the world grapples with climate change: How do we reduce the use of polluting fossil fuels, particularly given increasing demand for automobiles brought on by the emerging economic wealth in places like China. And, if we do begin phasing out gasoline engines, how do we build the infrastructure—a network of charging stations like those now available for petroleum-based fuel—to make the transition to electric-powered vehicles possible? Will any success in reducing pollution even be enough, or must we begin to fundamentally rethink our reliance on private vehicles, however powered, or face more unproductive time spend in traffic jams? Another continuing area of concern is safety and security, such as how to reduce the number and severity of automobile accidents, how to make car and plane crashes more survivable, and how to reduce the risks from terrorism, especially given the increasing reliance on electronic transportation monitoring and guidance systems that could be vulnerable to cyber attacks? Future transportation planning and policy will undoubtedly continue to be tied to our use of land. Can we encourage new urban forms that fight sprawl and make it easier to use public transit? New movements, such as “complete streets,” challenge us to rethink our transportation systems as an integral component of the public space, providing for walking, bicycling, autos, and public transit in ways that enhance the urban experience rather than erecting more barriers to social and personal interaction. On a larger scale, as globalization takes greater hold, and more and more raw materials and finished products are being shipped around the world, what will the next generation of airports, shipping terminals, and distribution routes look like? Can transportation systems adapt to the changing patterns of urbanization and vice versa? Other continuing concerns reflect how to pay for our existing transportation systems, many of which are in great need of repair or upgrades to meet growing demand. As we make substantial investments in our transportation infrastructure, the question of the equitable distribution of benefits and costs will become even more critical. Should transportation be privatized, or should the public sector remain primarily responsible? Which modes should be subsidized? Who should pay: users, the general public, or some combination? How will the information revolution affect the need to travel and the ways we travel? Can it be used to connect travelers with useful, real-time information or even be used to control the movements of both public and private vehicles? What impact will the growth of social media have on transportation? Perhaps the information age will severely reduce our need to travel as more and more of our daily needs can be met electronically. But if that is to be, what alternative investments should we be making? In some sense, the changes taking place are so new that it is hard to even imagine what questions to ask. Is it too early to start thinking about building skyports to serve low-orbit commercial space flights? There are also institutional challenges ahead. Are there better ways to predict and plan for travel demand, both personal and commercial? Who should decide what to do with the increasingly detailed personal travel information collected by mobile telecommunications devices? What role should the public play in deciding the future of the next generation of transportation systems? Many of the great planning disasters have revolved around transportation projects that failed to consider their social and environmental impacts and relied too heavily on technical expertise without consulting with, much less collaborating with, those affected by official decision making. Can transportation policy and planning be more democratic? Can they become more responsive to the needs of the poor and those with limited mobility? And, if so, has the era of the mega transportation projects in the United States drawn to a close? These and many other critical issues facing the United States and the rest of the world are addressed, if not completely answered, among the many entries that follow. I would like to thank the many generous contributors who gave their valuable time and considerable knowledge in helping realize this project. Editor ## Chronology ca. 4000 b.c.e.: Roads in the Mesopotamian city of Ur are paved with stone, making them among the first manufactured roads in the world. ca. 3300 b.c.e.: Log “corduroy” roads are built across marsh ground near Glastonbury, England, by laying individual logs perpendicular to the movement of traffic. ca. 3000 b.c.e.: Roads paved with brick are constructed in India. ca. 500 b.c.e.: The Persian emperor Darius I builds a great network of roads, including the royal road from Susa to Sardis. 312 b.c.e.: Construction begins on the Roman road known as the Via Appia or Appian Way, running from Rome to Brindisi in southwestern Italy. ca. 47 c.e.: Construction by Roman legions begins on the Fosse Way in Britain, a road linking Somerset with Lincoln. ca. 610: In China, construction begins of the Grand Canal linking the Yangtze and Yellow Rivers. 1271: The Venetian merchant Marco Polo sets off for Asia; he returns almost 25 years later, and his accounts of Eastern lands make him famous, although some there was dispute whether he had actually visited some of the places he described. 1391: In Germany, construction begins on a canal to link the Baltic and North Seas. ca. 1500: In Milan, the first modern canal lock gates are installed. ca. 1500: In South America, the Inca Empire includes a vast network of roads designed for caravans of llamas. 1610: In Britain, stagecoach service begins operation between Edinburgh and Leith; it is the first such service to use regularly spaced posthouses to change horses. 1630: The British entrepreneur Huntington Beaumont builds plank roads to accommodate heavy, coal-laden carts drawn by horses. 1660s: In Austria, an iron-spring suspension system for coaches is developed that greatly improves the comfort of the ride and helps popularize coach travel, as opposed to riding horseback. 1681: In France, the Briare Canal is completed, joining the Seine and Loire Rivers; its original purpose was to transport grain, and it was later used for wine, timber, and other products. 1706: In Britain, Parliament passes the first statute creating a Turnpike Trust to construct and oversee the country's roads and to levy tolls on vehicles traveling on them. 1755: In the United States, George Washington acquires Conestoga wagons to transport military goods; the principal design innovation of the Conestoga wagon, the curved floor that helps keep the contents from shifting, also made it a popular wagon for settlers crossing the American continent to settle in the West. 1758: In England, the Middleton Railway in Leeds is established by an act of Parliament, lending credence to its claim to be the oldest public railway in the world. 1774: The Scottish engineer and inventor James Watt builds an efficient, stationary steam engine, used at first to operate plumps and later for many industrial purposes. 1784: In England, postal service by horse-drawn coach is introduced; the first postal run was from Bristol to London, but service was quickly expanded to include other cities, including Edinburgh in 1786. 1789: The U.S. Congress appropriates funds for lighthouses, buoys, and beacons and federalizes the lighthouses already existing. 1790: In Scotland, the Forth and Clyde Canal opens, crossing the Scottish mainland and linking the Firth of Forth with the Firth of Clyde. 1806: In the United States, legislation authorizing construction of the first federal highway, the National Road connecting Ohio with the Atlantic Coast, is signed by Thomas Jefferson. 1807: In the United States, Robert Fulton launches the first successful commercial steamboat, the Clermont, on the Hudson River, where it carries passengers between New York City and Albany, a distance of about 150 miles. 1813: The first successful steam locomotive, the “Puffing Billy” designed by William Hedley, begins operation at the Wylam colliery near Newcastle on Tyne, England. 1817: In Germany, Baron Karl von Drais invents a “walking machine” that resembles a bicycle without pedals or a chain; it consists of two wheels in a wooden frame and was used by straddling the frame, pushing off against the ground with your feet, and gliding. 1825: In the United States, the Erie Canal begins operation, providing the first water link between the Hudson River and the Great Lakes, thus allowing goods to be transported from the Atlantic Ocean into the central United States without having to be carried overland; the first ship to use the canal, a packet boat named the Seneca Chief, departs from Buffalo, New York, on October 26 and arrives in New York City on November 4. 1825: In England, the first steam-powered railway service begins operation between Stockton and Darlingon. 1827: In New York City, Abraham Brower establishes the city's first public transportation service along Broadway, provided by a 12-seat stagecoach that followed an established route and charged a set fare to passengers. 1827: In New York City, the banker John Mason organizes a street railway with horse-drawn vehicles and cars running on metal tracks; the cars are built by John Stephenson, who becomes a major supplier of horse-drawn streetcars. 1828: In Germany, the horse-drawn Prince William Railway begins operation to haul coal; it begins carrying passengers in 1833 and, in 1847, begins using steam power. 1830: George Stephenson begins operating a passenger railway between Manchester and Liverpool. 1832: In Sweden, the Göta Canal is completed, forming part of a waterway reaching from the Atlantic Ocean to the Baltic Sea. 1832: The Sirius becomes the first steamship to cross the Atlantic; the journey takes nine days. 1840: The first contract to transport mail across the Atlantic Ocean by steamship is granted to Samuel Cunard. 1843: Completion of the Thames Tunnel under the Thames River in London; used originally for pedestrians, it later was used as a railway tunnel. 1847: Great Britain becomes the first country to adopt standard time zones, motivated by the growth of the rail system and the need to have a standard method of keeping time to facilitate accurate timetables. 1849: Public transportation begins in Toronto in the form of horse-drawn omnibuses designed by cabinetmaker Burt Williams and operating along King Street and Yonge Street. 1852: In Chicago, omnibuses begin providing public transportation; the first buses were horse-drawn stagecoaches that took passengers between rail stations. 1853: The first passenger railway in India begins operation, running from Bombay to Thane; several previous railways were already in operation but were used to transport materials rather than passengers. 1854: A steam railway begins operation in Victoria, running from Flinders Street to Sandridge; routes were soon added running to St. Kilda (1857), North Brighton (1859), and Essendon (1860). 1859: The first street railways in Chicago begin operation; the cars are horse-drawn omnibuses with steel wheels and run on rails attached to the plank streets. 1861: In Toronto, the first horse-drawn street railways begin operation along King Street, Yonge Street, and Queen Street. 1862: In the United States, President Abraham Lincoln authorizes construction of the Transcontinental Railroad (completed in 1869) by signing the Pacific Railway Act. 1863: The first underground railway begins operation in London, running from Padding to Farringdon Streets. 1864: In England, construction of the Clifton Suspension Bridge begins; designed by Isambard Kingdom Brunel, the bridge spans the River Avon and the Avon Gorge. 1865: The velocipede, or “Boneshaker,” an early proto-bicycle, is introduced; originally made entirely of wood, it has pedals attached directly to the front wheel. 1869: In Egypt, the Suez Canal at Port Said opens. 1869: In London, the East London Railway begins running steam trains through the Thames Tunnel. 1869: The American engineer George Westinghouse invents the railway air brake, replacing manual systems and greatly increasing the safety of rail travel; Westinghouse makes many improvements to the air brake over the years, and in 1893, the U.S. federal government requires automatic air brake systems on all interstate rail travel. 1869: In Melbourne, Australia, the city's first public transportation fleet begins operation, as the Melbourne Omnibus Company begins operating 11 horse-drawn buses; by 1881, the fleet had expanded to 158 horse-drawn buses. 1869: In the United States, the transcontinental railroad is completed when the Union Pacific and Central Pacific Railroads meet at Promontory Summit in Utah. 1870: Elevated rail service begins in New York City, running along Greenwich Street and Ninth Avenue in Manhattan. 1870: The first all-metal bicycles are created, with pedals attached directly to the enlarged front wheel and solid rubber tires, which provided a smoother ride. One model, built by James Starley, is called the penny farthing bike because of the different sizes of the two wheels. 1879: A French team, led by Ferdinand de Lesseps, begins construction on the Panama Canal. 1879: Sandford Fleming, a Scottish-born engineer working in Canada, popularizes the concept of standard world time zones, including establishment of the prime meridian at Greenwich, England, the location still used today. 1880: In the United States, the League of American Wheelmen, an organization of cyclists, is formed and lobbies for better roads. 1881: In Dunedin, New Zealand, the first cable tram line outside America begins operation; designed by George Smith Duncan, it begins operation with a single line, with a second added in 1883. 1883: A cable-powered railway begins providing service in New York City, running over the Brooklyn Bridge between Manhattan and Brooklyn. 1884: Thomas Stevens rides a bicycle across the United States from Oakland, California, to Boston, Massachusetts. 1885: In Melbourne, Australia, the city's first cable tram line begins operation; by 1891, a network of 17 miles of cable trams connected Melbourne with its surrounding suburbs, and the system remained in operation until 1940. 1885: The first automobile, the three-wheel Tri-Star, is built by the German engineer Karl Friedrich Benz; it is powered by an internal combustion engine. 1885: The German engineer Gottlied Wilhelm Daimler builds the first successful four-wheeled automobile; like the Tri-Star, it has an internal combustion engine. 1888: In Germany, members of the Benz family of automobile manufacturers drive a car 90 kilometers, from Mannheim to Pforzheim, to demonstrate the usability of the new vehicles. 1889: Bicycles begin using pneumatic rubber tires, creating a smoother ride. 1890: A cantilevered railroad bridge is built across the Firth of Forth in Scotland. 1890: In London, the City and South London Railway begins operation of the first deep-level electric tube railway in the world; it runs between Stockwell and King William Street, and station access is provided by a hydraulic lift. 1890: In Russia, work begins on the Trans-Siberian Railway. 1890: In Potsdam, German Otto Lilienthal begins making guided flights in a glider. 1892: In Toronto, the Toronto Railway Company is granted a 30-year franchise over the city's streetcar system and begins operating electric streetcars; by the end of 1894, electric cars have completely replaced the horse-drawn variety. 1893: The modern bicycle frame design, with its diamond shape, is introduced. 1897: In Chicago, the El, or elevated train service, begins operation in the central downtown area, called the Loop; the elevated train tracks allowed them to by pass the congested streets of Chicago. 1897: In Berlin, eight automobiles are exhibited at the first International Motor Show. 1898: The American woman's rights advocate Susan B. Anthony cites the bicycle as an important force in the liberation of women as the popularity of the bicycle encouraged simpler clothing styles while also increasing mobility. 1898: The Canadian American sailor Joshua Slocum becomes the first person make a solo voyage around the world, a trip publicized in his 1900 book Sailing Along Around the World. 1900: In Illinois, the Sanitary and Ship Canal begins operation, reversing the flow of the Chicago River and bringing water from Lake Michigan to dilute the sewage of Chicago. 1900: In the United States, only one in 9,500 citizens owns a car, and only 22 percent of those run on internal combustion engines, with most of the rest being powered by electricity or steam. 1900: The first line of the Paris Metro begins operation, running from the Porte de Maillot to the Porte de Vincennes and providing transportation to the summer Olympic Games being held in Paris that year; 30,000 Metro tickets were sold on the first day of operation. 1901: In the United States, Samuel Pierpont Langley builds the first aircraft to be powered by an internal combustion engine. 1901: C. L. Horock designs the first modern shock absorber, the so-called telescope, which uses a piston with a one-way valve and air or oil to resist movement. 1902: In France, the industrialist Louis Renault introduces drum brakes for automobiles. 1902: In France, Leon Serpollet drives a steam car at 75 miles per hour, setting a land speed record. Shortly afterward, the record is broken by William K. Vanderbilt driving an internal combustion car; Vanderbilt reaches the speed of 76 miles per hour. 1903: Horatio Nelson crosses the United States by automobile in 65 days. 1903: In the United States, Wilbur and Orville Wright complete four sustained flights with a powered, controlled aircraft; the longest flight covers 852 feet. 1904: In Germany, Ludwig Prandtl presents a paper describing the concept of an aerodynamic boundary layer. 1904: The United States becomes the world's leading automobile manufacturer, surpassing France. 1904: The Interborough Rapid Transit (IRT) Company begins operating the first official subway system in New York City, with 9.1 miles of track running from city hall in downtown Manhattan to 145th Street. The IRT gradually expands service to the other bureaus, adding service to the Bronx in 1905, to Brooklyn in 1908, and in 1915 to Queens. 1904: The United States begins work on the Panama Canal, taking over an effort previously abandoned by the French. 1906: In the state of Victoria, Australia, an electric tram line begins running from St. Kilda to Brighton; many more lines were constructed over the next 14 years, and in 1920, they were consolidated under the auspices of the Melbourne and Metropolitan Tramways Board. 1907: The Fifth Avenue Coach Company begins offering the first passenger motor bus service in New York City, running between Washington Square in Lower Manhattan and 90th Street. 1908: In Michigan, Henry Ford begins producing the Model T automobile, with more than 10,000 cars produced in the first year alone. 1908: In London, the three separate companies operating underground railway services begin coordination of their services, including the development of common signage and distribution of free pocket maps. 1910: Commercial air service is provided by the rigid airship Deutschland, developed by Ferdinand Zeppelin. 1912: The American aviator Glenn Curtis demonstrates The Flying Fish, the first successful flying boat. 1912: The ocean liner Titanic, operated by the White Star line, sinks in the North Atlantic on the way from England to America, killing more than 1,500 people. 1913: In December, the Panama Canal is completed, creating an unbroken waterway between the Atlantic and Pacific Oceans. 1913: The first subway in Latin America begins operations in Buenos Aires, Argentina. 1913: In Michigan, Ford Motor Company develops the first moving assembly line for automobile production, allowing cars to be made more cheaply and efficiently. 1914: In New York, Lawrence Sperry demonstrates the use of an automatic gyrostabilizer to keep an airplane level and on a straight course. 1915: In the United States, the National Advisory Committee for Aeronautics is created to foster and support aeronautical research. 1915: In New York City, the Brooklyn Rapid Transit Company begins offering subway service between the boroughs of Manhattan and Brooklyn; it will be taken over by the Brooklyn-Manhattan Transit (BMT) Corporation a few years later. 1916: In the United States, the Federal Aid Road Act becomes law, creating a program in which the federal government provides funding to the states to construct roads to facilitate mail delivery. 1918: Airmail service in the United States begins, with a flight from Washington, D.C., to New York City. 1919: U.S. Navy pilots cross the North Atlantic Ocean, from Newfoundland to London, making stops in the Azores and Lisbon. 1919: In Europe, the first air passenger service begins across the English Channel between London and Paris. 1920: The New York City subway system begins using coin-operated turnstiles rather than tickets; a ride first cost a nickel and was later raised to a dime. 1923: In the United States, construction begins on the Lincoln Highway, the first fully paved road to cross the United States; it will run through 13 states (14 after rerouting) on its course from New York City to San Francisco. 1924: In the United States, the National Conference on Street and Highway Safety, hosted by Secretary of Commerce Herbert Hoover, brings together engineers, automobile manufacturers, and insurers to seek ways to reduce the number of deaths caused by automobile accidents. 1926: In the United States, Francis Wright Davis introduces the first power steering system in a Pierce-Arrow automobile. 1927: In May, American Charles Lindbergh makes the first nonstop solo flight across the Atlantic Ocean from New York to Paris. 1927: One out of every seven Americans owns a car. 1927: In June, Lester Maitland and Albert Hegenberger complete the longest open-sea flight to date, flying 2,400 miles from Oakland, California, to Honolulu, Hawai. 1932: American aviator Amelia Earhart becomes the first woman to fly solo across the Atlantic from Newfoundland to Ireland. 1932: The City of New York creates the Independent Rapid Transit (IND) railroad, the first city-owned subway line. 1933: The first commercial airliner, the Boeing 237, is introduced; it has two engines, variable-pitch propellers, and retractable landing gear and seats 10. 1933: In London, Harry Beck creates a diagram map for the Underground that remains in use, with modifications, to this day. 1934: The French Citroën Traction Avant becomes the first successful, mass-produced front-wheel-drive automobile. 1934: Germany begins construction on the first autobahn, or freeway; the first section, running from Frankfurt to Darmstadt, opens in 1935 and is so well-constructed for high speed travel that it is used for racing as well as transportation. 1935: The first subway system in the Soviet Union, the Moscow Metro, begins operation. 1935: The British engineer Robert Watson-Watt patents the first practical radar system; originally intended to study the weather, it proves useful in detecting incoming aircraft during World War II. 1935: In November, Pan American Airways begins the first transpacific airmail service between Manila and San Francisco. 1936: In October, Pan American Airways begins operating the first transpacific passenger air service. 1937: The jet engine is designed independently in England, by Frank Whittle, and Germany's Hans von Ohain. 1937: The German passenger airship Hindenburg catches fire in New Jersey, killing more than 30 people and shattering public confidence in rigid airships as a means of transportation. 1937: Amelia Earhart disappears somewhere in in the Pacific during an attempt to fly around the world. 1939: The VS-300 helicopter, one of the first practical single-rotor helicopters, is designed for the U.S. Army by the Russian émigré Igor Sikorsky. 1939–45: In London, Underground Tube stations provide shelter from bombing raids and are also used as military command centers and for the storage of artworks. 1940: In the United States, engineer Karl Pabst designs the Jeep, which becomes a workhorse vehicle for the United States and allied forces in World War II. 1940: In Washington State, the Tacoma Narrows suspension bridge collapses into Puget Sound less than five months after it began carrying traffic; the collapse was caused by periodic motion or flutter caused by the wind. 1940: New York City purchases the Brooklyn-Manhattan Transit (BMT) and the Independent Rapid Transit (IRT) Corporations and becomes the sole owner and operator of subway and elevated trains in the city. 1942: The Alcan, or Alaska–Canada, Highway, constructed largely as a military supply route during World War II, is completed; it runs from Dawson Creek, British Columbia, to Delta Junction, Alaska. 1945: In Wolfsburg, Germany, the first Volkswagen Beetle is manufactured; production of the Beetle continues until 2002. 1945: The Chicago Transit Authority (CTA) is created, bringing Chicago's mass transit systems under public ownership for the first time. By 1997, the CTA manage a system carrying 287 million riders annually on buses and 130 million on rapid transit cars. 1947: In California, U.S. Air Force pilot Charles Yeager becomes the first to fly faster than the speed of sound, that is, breaking the sound barrier. 1948: During the Cold War, Russia blocks surface access to the Allied sector of Berlin, Germany; in response, the Allies organize the Berlin Airlift to transport food, fuel, and other necessities to the city's residents by airplane. 1950: The St. Roch, a Canadian ship, becomes the first to circumnavigate North America, passing through both the Panama Canal and the Northwest Passage. 1952: The first commercial jet airline service, between London and Johannesburg, South Africa, begins operation using the De Havilland Comet. 1952: The American engineer Richard T. Whitcomb discovers the area rule, which becomes a fundamental aspect of airplane design. 1953: The New York City subway system begins using tokens, as the fare had risen to 15 cents and the turnstiles could only handle one type of coin. 1954: In the United States, the Wiley–Dondero Act creates the Saint Lawrence Seaway Development Corporation to develop the U.S. portions of the Saint Lawrence Seaway between Lake Erie and Montreal. 1955: The last elevated public transit rail line closes in Manhattan, New York City, the Third Avenue El. 1956: The New York City Transit Authority shuts down its last two trolley lines, which ran in Brooklyn along McDonald Avenue and Church Avenue. 1956: In the United States, Congress passes the Interstate Highway Act to create a national system of limited-access, high-speed highways. 1957: In East Germany, the first Trabant, an automobile with a two-stroke engine, is produced; it becomes the most common car in East Germany and remains in production until 1991, when East and West Germany are reunified. 1960: The New York City Transit Authority ceases operation of the last trolley buses in the system. 1960: One in three Americans owns a car. 1962: The Trans-Canada Highway is completed, running from the Atlantic to the Pacific coasts and connecting all 10 provinces. 1962: Colorado businessman Leonard Rivkin introduces the first child car safety seat, called the Strolee National Safety Car Seat for Children. 1963: Positive crankcase ventilation (PCV) is introduced to automobile engines in an effort to reduce the emission of harmful gases. 1964: In California, construction begins on the Bay Area Rapid Transit (BART) system; in 1972, the first segment of the system, a 28-mile stretch between Fremont and MacArthur stations, begins operation. 1964: In the United States, the Urban Mass Transportation Act creates a program of matching federal grants to help states build urban mass transportation systems. 1964: In Japan, the first of the high-speed Shinkansen, or bullet train rail lines, begins operation, running from Tokyo to Osaka. 1965: New York City begins express bus service, with a line running from Staten Island to Brooklyn. 1965: The United States begins developing high-speed train service for the densely populated Northeast Corridor, authorized by the High Speed Ground Transportation Act of 1965. 1965: The U.S. Congress passes the Vehicle Air Pollution and Control Act to regulate automobile emissions. 1966: In the United Kingdom, an efficient electronic fuel injection system is developed for automobiles. 1967: In the United States, 46 people are killed when the Silver Bridge, running between Gallipolis, Ohio, and Point Pleasant, West Virginia, collapses; this accident helped motivate the inclusion of national standards for bridge inspection in the 1968 Federal Aid Highway Act. 1969: The Boeing 747, the first jumbo jet, or wide-body commercial airplane, begins operations. 1969: In Washington, D.C., construction begins on an underground rapid-transit rail system, known as the Metro; the first line begins operation in 1976, and the system is later extended to include parts of Maryland and Virginia. 1969: In New York City, reduced transit fares for senior citizens are introduced, a benefit extended in 1975 to disabled people as well. 1969: In the United States, high-speed Metroliner rail service between Washington, D.C., and New York City begins operation; the Metroliner service continues until 2006, when it is replaced by the Acela Express service. 1970: On April 22, the first Earth Day is held, reflecting growing interest in conservation and environmentalism, including the development and expansion of public transportation systems and other alternatives to the automobile. 1971: In Melbourne, Australia, construction begins on an underground rail loop; a test train ran through it in December 1980, and regular passenger service began in January 1981. 1973: The Paris Metro system introduces turnstiles, replacing the system of punched paper tickets that had been used from the system's opening in 1900. 1976: In January, commercial service begins on the Concorde SST, a plane capable of flying at twice the speed of sound and making the trip from London to New York in 3.5 hours. 1977: Airplanes operated by KLM and Pan Am collide on a runway in Tenerife (the Canary Islands, Spain), killing 583 people in the deadliest accident in commercial aviation history. 1978: In the United States, the Airline Deregulation Act of 1978 liberalizes several aspects of air travel, including allowing airlines to reduce fares without needing the approval of the Civil Aeronautics Board and allowing new airlines to begin service on routes not protected by other carriers; however, smaller communities are guaranteed essential air services for an additional 10 years, with government subsidies if the routes are unprofitable. 1979: The Iranian Revolution disrupts oil production and exports from Iran, causing higher gasoline prices and shortages in the United States and increasing interest in fuel-efficient vehicles as well as alternative means of transportation; one response is Executive Order 12191, signed by U.S. President Jimmy Carter, which encourage federal employees to carpool to work. 1980: Japan becomes the world leader in automobile manufacturing, surpassing the United States. 1981: The first mass-produced mountain bike is introduced in the United States, helping popularizing mountain biking as a sport. 1981: In France, the first high-speed train service (Train à Grand Vitesse) begins operating between Paris and Lyon. 1981: In the United States, the Professional Air Traffic Controller's Association (PATCO) goes on strike; when most members refuse to return to work (government unions in the United States are not allowed to strike), President Ronald Reagan fires them, and PATCO is decertified by the Federal Labor Relations Authority. 1982: Braniff Airlines becomes the first U.S. scheduled airline in history to file for Chapter 11 bankruptcy protection; an administrative law judge later determines that Braniff's financial collapse was caused in part by the Airline Deregulation Act. 1984: New York becomes the first U.S. state to mandate the use of seat belts in automobiles for all passengers. 1985: The U.S. cyclist John Howard becomes the first person to break 150 miles per hour on a bicycle, achieving a speed of 152.3 miles per hour. 1987: In London, fire and safety regulations are upgraded after 31 people are killed in a fire caused by an escalator at the King's Cross Underground station. 1987: The European Commission introduces the first reforms intended to liberalize air transport among member countries, limiting the right of governments to determine air fares and giving airlines more flexibility to share seat capacity. 1988: Pan American Flight 103 blows up over Lockerbie, Scotland, killing 270 people; a British investigation later determines that the cause of the explosion was probably a terrorist bomb hidden in a radio-cassette player, and in 1991, two Libya intelligence agents are indicted for this crime. 1990: California passes the Zero Emission Vehicle Mandate, requiring 10 percent of the state's cars to produce no emissions by 2003, and 2 percent by 1998. 1991: In the United States, the Intermodal Surface Transportation Efficiency Act (ISTEA) emphasizes regional transit planning and gives states greater flexibility in planning mass transportation; it also mandates airbags as a safety feature in automobiles. 1992: In the United States, the Energy Policy Act encourages the development of automobiles powered by alternative fuels, including natural gas, battery power, and mixtures of gasoline and alcohol. 1993: The New York City Transit Authority introduces the MetroCard, an electronic-stored value card; it is gradually phased in throughout the system, and by 1997, the entire subway and bus system accepts MetroCards. 1993: In the United States, air traffic controllers fired after the 1981 strike are allowed to reapply for employment with the Federal Aviation Administration. 1995: In Tokyo, members of the Aum Shinrikyo cult release sarin gas on the Tokyo Metro, an act of domestic terrorism resulting in 13 deaths. 1996: General Motors begins producing the EV1, a mass-produced electric car; it ceases producing the EV1 in 1999. 1997: The European Commission introduces cabotage in the air transport sector, giving an airline from one member state the right to operate an air route within another member state. 1997: Toyota introduces the first commercial, mass-produced hybrid automobile, the Prius, and sells nearly 18,000 vehicles in the first year. 1998: The New York City Transit Authority begins using hybrid electric buses. 1999: The United States hands over sovereignty of the Panama Canal to Panama, fulfilling the terms of the Torrijos–Carter Treaties signed in the 1970s by U.S. President Jimmy Carter and General Omar Torrijos of Panama, which replaced the original agreement of 1903 between the countries. 2001: A coordinated series of terrorist attacks on the United States, including the World Trade Center in New York City and the Pentagon near Washington, D.C., all involving highjacked commercial air flights, spur the creation of the Transportation Security Administration (TSA) in the United States. 2003: In the New York City public transportation system, tokens are no longer accepted as of April on subways, and as of the end of the year on buses, as they have been replaced by the electronic stored-value MetroCard. 2004: In Shanghai, China, the first commercial maglev (magnetic levitation) train begins operating, running from the Longyang Road metro station to Pudong airport. 2005: In London, 52 people are killed in coordinated suicide bomb attacks on a bus and three Underground trains. 2005: The Airbus A380, the world's largest passenger aircraft, begins operation; it can carry more than 850 passengers. 2007: Panama begins a project to widen the Panama Canal and create new locks in order to accommodate larger ships, with completion scheduled for 2014. 2007: The case of an Atlanta lawyer draws attention to the possibilities of communicable disease being spread rapidly through modern transportation systems. The man, Andrew Speaker, had multidrug-resistant tuberculosis, yet took several international airplane flights, potentially exposing other passengers to the disease; upon return to the United States, he was placed in involuntary isolation (quarantine) for treatment. 2009: Nissan introduces the LEAF, an electric car that can travel 90 miles per hour and has a range of 100 miles on a full battery charge; the acronym stands for Loading, Environmentally friendly, Affordable, Family car. 2010: In Moscow, about 40 people are killed in two Metro stations as a result of suicide attacks. 2011: Somali pirates working in the Arabian Sea kill four American hostages, bringing increased attention to the problem of sea piracy and calling for stronger measures in response to the problem. 2012: A study by the Highway Data Loss Institute finds that the probability of accidents is reduced in cars that have a forward collision-avoidance system installed; adaptive headlights are also associated with reduced probability of accidents, but lane departure warning systems are not. 2012: In China, the world's longest high-speed rail line begins regular service from Beijing to Guangzhou; the trains travel the roughly 1,200-mile distance in about eight hours, while regular trains on a parallel track require 21 hours to complete the same route. 2012: A study by the Norwegian University of Science and Technology suggests that the environmental benefits of electric cars, as compared to gas-fueled cars, are not as great as previously assumed; among the causes were greater toxic waste produced by electric car factories and the use of toxic minerals in producing the car batteries. 2012: The U.S. Federal Aviation Agency releases a forecast predicting that, as measured by Revenue Passenger Miles (RPM), airline passenger travel will nearly double by 2032. 2012: The first private cargo rocket to supply the International Space Station is launched from Cape Canaveral, Florida; the rocket is built by the Space Exploration Technologies Corporation (SpaceX) and is part of a National Aeronautics and Space Administration (NASA) program to replace government-operated spacecraft with those operated by private companies for low-Earth orbit missions. 2012: The final report on a 2009 Air France plane crash killing 228 people attributes the crash to a combination of confusing alarm systems, faulty equipment, and lack of pilot training for the particular circumstance encountered (a high-altitude stall). 2013: In India, about 40 people are killed at the Allahabad railway station in an incident described as a stampede caused by an overload of passengers (many of whom were pilgrims traveling to a religious festival), delayed rail service, and a sudden change in the routing of a departing train, causing several thousand people to surge onto a footbridge meant to accommodate fewer than 1,000. 2013: Mercedes Benz exhibits an electric car, the Mercedes Electric Drive, that has a quick-charge feature allowing it to travel 60 miles after being charged for two hours; the Electric Drive, which was developed in cooperation with Tesla Motors, is scheduled to go on sale in 2014. 2013: In the United States, federal budget cuts lead the Federal Aviation Administration to announce the closing of 149 air traffic control towers; several airports, including the Spokane International Airport and the Central Illinois Regional Airport, file lawsuits arguing that the closings would cause dangerous conditions. 2013: The Metropolitan Transportation Agency in New York City announces that almost$5 billion will be required to repair damage caused by Hurricane Sandy, which hit the city in October 2012.

2013: In its “Global Status Report on Road Safety 2013,” incorporating data from 182 countries, the World Health Organization reveals that worldwide 1.24 million road traffic deaths occur annually, making road traffic injuries the leading cause of death among people aged 15 to 29 years.

2013: In May, the World Bank releases a report concluding that production of crops for biofuel has only a limited effect on food prices.

2013: On July 3, Asiana Airlines Flight 214 crashed during its approach to San Francisco International Airport. Of the over 300 passengers on board, two died at the scene and 181 were injured.

2014: On March 8, Malaysia Airlines Flight 370, carrying over 200 passengers and 12 flight crewmembers, went missing during a scheduled flight from Kuala Lumpur to Beijing. Despite extensive searches, as of June 2014, no trace of the plane has been found.

2014: On April 10, the European Commission issues its first-ever EU Transport Scoreboard, comparing member states on 22 categories, including safety, environmental impact, and infrastructure for road, rail, water, and air transportation.

2014: On May 7, the U.S. Department of Transportation issues an Emergency Restriction Prohibition Order requiring rail carriers transporting large amounts of crude oil from the Bakken shale formation to notify counties in each state through which the crude oil will be moved. This requirement was prompted by several accidents involving the volatile Bakken crude oil, including an explosion in Quebec that killed 47 people.

2014: On June 23, a group of electric car advocates led by the Illinois Green Economy Network begins a 500-mile drive across Illinois to counteract range anxiety (the fear that an electric car will run out of power before reaching a charging station). The drive, which began in Carbondale and ends in Grayslake, includes stops at 11 Illinois community colleges that have charging stations.

.
• ## Glossary of Terms and Acronyms

• AADT: Average annual daily traffic, calculated by dividing the total traffic on a segment of highway over a year by the number of days in the year.
• AADTT: Average annual daily truck traffic, a measure calculated by dividing the total volume of truck traffic on a segment of highway over the period of a year by the number of days in the year.
• AAR: The Association of American Railroads, an industry organization including Amtrak (passenger rail) and the major U.S. freight railroads.
• AASHTO: American Association of State Highway and Transportation Officials, a nonprofit association representing departments of transportation and highway departments in U.S. states, Puerto Rico, and Washington, D.C., with the primary purpose of fostering the development of an integrated system of transportation across the country.
• AATF: The Airport and Airway Trust Fund, a fund created in 1970 by the federal Airport and Airway Revenue Act; the revenues come from taxes on users of the U.S. air system, including excise taxes on domestic passenger tickets, international passenger arrivals and departures, and cargo waybills and is used to maintain and expand airport facilities.
• ABC classification: A method to classify goods (for instance, for inventory control) by splitting them into classes A (highest value), B (middle value), and C (lowest value); typically, A items are about 10 to 20 percent of the total count and 50 to 70 percent of the expected dollar value, the B group about 20 percent of both the count and the dollar value, and C items about 60 to 70 percent of the count and 10 to 30 percent of the value.
• AC: Alcohol concentration, the concentration of alcohol in a person's blood (blood alcohol concentration [BAC]) or breath, used as a proxy for the person's level of intoxication and ability to safely operate a vehicle.
• Accident: As defined by the U.S. Department of Transportation, an incident involving a moving vehicle, including collisions, derailments, and leaving the roadway, that produces unintended property damage, injury, or death; a collision of a vehicle with a person, if determined to be a suicide, is not classified as an accident.
• Accounts payable: Sometimes abbreviated as A/P, the value of goods and services that have been received but have not been paid for.
• Accounts receivable: Sometimes abbreviated as A/R, the values of goods and services that have been shipped or rendered to a customer but for which the customer has not yet paid.
• Ad valorem: A Latin phrase meaning according to value; an ad valorem tax or duty is based on the value of the items in question.
• ADA: Americans with Disabilities Act, a 1990 U.S. law prohibiting discrimination based on handicap or disability; certain accommodations must be made in public transportation to facilitate use by persons with handicaps or disabilities.
• ADR: A European agreement known by the French name Accord européen relatif au transport international des marchandises dangereuses par route. It took effect in 1968 and was most recently amended in 2011, regulating the road transportation across national boundaries of dangerous goods.
• AGVS: Automated guided vehicle system, a method of transporting materials by small carts that are controlled by computers as they move along a guideway.
• Air cargo: Cargo (freight) that is shipped by air.
• Aircraft accident: As defined by the U.S. Department of Transportation, an occurrence incidental to flight and which causes fatal or serious injury to one or more people or substantial damage to an aircraft incidental to the operation of an aircraft.
• Airline Deregulation Act: A 1978 U.S. federal law that eliminated many regulatory functions of the Civil Aeronautics Board; as a result of the act, fares decreased on many popular routes, and the number of people traveling by air in the United States greatly increased; however, prices increased on some less popular routes.
• Airplane: As defined by the U.S. Department of Transportation, a vehicle that is heavier than air, driven by an engine, with fixed wings, and that uses the dynamic reaction of air against its wings in order to remain in flight.
• Airship: As defined by the U.S. Department of Transportation, a lighter-than-air vehicle that is driven by an engine and can be steered.
• Alternative fuels: Fuels used to replace more conventional fuels commonly used in transportation, such as those derived from petroleum. As defined by the U.S. Energy Policy Act of 1992, alternative fuels include alcohols such as methanol, mixtures including at least 85 percent alcohol, compressed natural gas, hydrogen, liquid petroleum gas, electricity, and fuels derived from biological materials.
• AMPO: The Association of Metropolitan Planning Organizations, a nonprofit U.S. organization offering its members technical assistance, communications, access to research and training, and other services.
• Analysis of alternatives: A method of approaching an issue by looking at how the various components of a system work together and considering the impact, including costs and benefits, of various proposed changes to that system.
• Antidumping duty: A duty placed on imported goods to protect domestic industries; it is imposed when an exporter charges less for exported goods than the usual price in their own domestic market (i.e., when the exporter is dumping cheap goods on another country and thus making it difficult for the industry in the receiving country to compete).
• APS: Advanced planning and scheduling, a set of techniques used to optimize manufacturing and logistics operations; often APS is used to simulate the outcomes from different scenarios in order to select the best course of action.
• Arterial: A road designated to provide high-volume and high-speed travel, primarily for through traffic; generally, arterials are protected by stop signs, traffic lights, and so on, to avoid the necessity of frequent stops by drivers on the arterial.
• ASN: Advanced shipping notice, information sent to a customer about a shipment that has been sent, including the contents of the shipments, and possibly information such as the expected time of arrival and the carrier used.
• Asphalt: A sticky petroleum product used in road construction, particularly as asphalt concrete; a combination of asphalt with other materials such as sand or gravel.
• AST&L: The American Society for Transportation and Logistics, an organization founded in 1946 for people working in the logistics and transportation professions and that began offering a certification program in 1948.
• ATA: The American Trucking Associations, an organization founded in 1933 to represent the U.S. trucking industry; it was created by the merger of the American Highway Freight Association and the Federation Trucking Associations of America.
• Attainment area: In the context of air pollution, a geographic area that has met specified standards, for example, those of the U.S. Clean Air Act, as opposed to a nonattainment area, which has not met those standards; attainment is calculated separately for each pollutant, so a region can be an attainment area for some pollutants and a nonattainment area for others.
• Average passenger trip length: In bus and rail travel, a measure calculated by dividing the number of revenue passenger miles by the number of revenue passengers.
• AWB: Air waybill, a bill of lading for goods shipped by air.
• AWO: The American Waterways Operators, a trade association for operators of barges, towboats, and tugboats on U.S. inland waterways.
• Backhaul: The return trip of a transportation vehicle from its original destination to its point of origin; a backhaul may include a full, partial, or empty load.
• Barge: A vehicle for carrying cargo over water, usually on inland waterways; barges may or may not have their own propulsion systems and are usually open topped, although covered barges also exist.
• Barrier to entry: Any factor that may make it difficult for competitors to enter a market, such as high cost of equipment that must be purchased before beginning operation.
• Basing point pricing: A method of pricing the cost of transportation from a specific location in a zone, even if the shipment does not actually depart from that location.
• BCP: Business continuity plan, a contingency plan for a business to continue operating despite disruptions such as a natural disaster or labor unrest.
• Bill of lading: A legal document specifying the terms and conditions agreed upon by a shipper (such as a shipping line) and the shipper of goods, describing the goods carried and their destination; the bill of lading accompanies the goods and, when they are delivered, is signed by the receiver to signify that they have been received.
• Bonded warehouse: A secure warehouse for storing goods until the appropriate revenue laws are observed, for example, duty is paid on the goods.
• Bottleneck: A point in a system in which the speed of forward movement is limited by accidental or imposed constraints, for instance, a stretch of road that suddenly narrows or a point in a manufacturing process where production must be slowed because of the lack of an essential component.
• Break bulk: A process in shipping in which a bulk load is separated into smaller individual shipments.
• B2B: Business to business, companies who sell goods and services primarily to other businesses rather than directly to customers.
• B2C: Business to consumer, companies who sell goods and services directly to consumers.
• BTS: Bureau of Transportation Statistics, a U.S. federal bureau established in 1992 by the secretary of transportation, with the charge of collecting and analyzing information about transportation, with a particular focus on intermodal transportation.
• Bulk cargo: Dry cargo such as grain or coal that is not packaged.
• Bulk carrier: A ship designed to carry large quantities of bulk commodities such as oil, grain, or coal in specialized holds; some are designed to carry multiple bulk products, some only a particular product.
• Bullwhip effect: A phenomenon in which a small change in demand results in a large change in supply, for instance, from a product being back-ordered to being held in excess; the bullwhip effect is caused by delays in communication and transportation up and down the supply chain.
• Cable railway: A type of rail system in which an operator can attach or release a given car from a continuously moving cable.
• CAFE: Corporate Average Fuel Economy Standards, a set of standards established by the U.S. federal government for automobile and truck manufacturers requiring that the fleets produced by each manufacturer meet a composite sales-weighted fuel economy standard.
• CAPSTAN: Computer-aided planned stowage and networking, a method developed by Kokumation AB and the Southern Africa Europe Container Service Ltd. to plan stowage on cargo ships.
• Cargo airline: An airline that specializes in shipping air freight as opposed to passengers; examples include DHL and FedEx Express.
• Carmack Amendment: In the United States, a 1906 amendment to the Interstate Commerce Act of 1887 that clarified the liability of a carrier if goods are damaged while being shipped across state lines.
• Carnet: A customs document that allows someone to bring goods into a country without requiring that duty be paid, with the understanding that the goods will be used in the country and then removed; for instance, a person might be allowed to bring a car into a foreign country for their own transportation needs and would not have to pay duty as long as the person took the car when he or she left.
• Carpool: A method of transportation in which several people travel together in a private vehicle on a prescheduled trip to a prearranged destination, possibly sharing the cost and work of driving.
• Cartel: A method of limiting competition in which a group of companies decide to cooperate with each other, for instance, by establishing a common price for their goods or services.
• Center of gravity approach: A method of planning a supply chain so that distribution centers are located to minimize transportation costs between manufacturing facilities, distribution centers, and markets.
• Certificate of origin: A customs document that specifies the location of origin (e.g., the country) of imported goods.
• Charter bus: A bus that has been booked by a group of passengers for their exclusive use for a particular trip and for a preestablished price.
• Civil Aeronautics Board (CAB): A U.S. government agency established in 1938 to control the aviation market, including specifying the number and type of planes to fly particular routes and the range of ticket prices; most CAB functions were eliminated in the Airline Deregulation Act of 1978, and the board was eliminated in 1985.
• CMAQ: Congestion Mitigation and Air Quality Improvement Program, a U.S. federal program that funds projects intended to help meet air quality standards.
• CO: Carbon monoxide, a pollutant gas comprised of one oxygen to one carbon atom; it is colorless, odorless, and highly toxic to human beings and is created as a by-product of incomplete combustion.
• CO2: Carbon dioxide, a gas comprised of two oxygen atoms to one carbon atom and which is colorless and odorless; under high compression, it becomes a liquid.
• Coastal carrier: A water carrier (ship) that provides service to coastal ports; in the United States, these would include ports on the Gulf of Mexico and the Atlantic and Pacific oceans.
• Combi aircraft: An aircraft designed to carry either cargo or passengers or both at the same time.
• Commercial bus: A bus that carries passengers in return for specified fees, whether charter service (prebooked for a particular set of passengers) or regular route service (following a specified route and providing transportation along it to anyone who pays the fare).
• Common carrier: A company providing transportation of goods and people to the public, does not discriminate against or provide special services to anyone, and is subject to regulation regarding rates, services, and liability.
• Commute: A regular trip made between an individual's home and his or her school or workplace.
• Compressed natural gas: Natural gas under high pressure so that it can be used as a fuel for vehicles.
• COTD: Complete and on-time delivery; a measure of customer service, COTD signifies delivery of a given order in its entirety on or before the time promised.
• Culvert: A pipe or other drain allowing water to flow under a road and possibly allowing the passage of wildlife as well.
• Deadhead: Returning a vehicle from its destination to its point of origin without transporting a load during that trip.
• DUI: Driving under the influence, a legal designation in the United States describing a person judged to be operating a motor vehicle under the influence of illegal drugs or alcohol.
• EIS: Environmental Impact Statement, a type of report mandated in the United States for certain federally funded projects, which must specify the potential adverse effects of the project, including pollution, displacement, or disruption of people or communities, and harm to natural resources.
• Elevated railway: A railway that operates on tracks above street level.
• Energy efficiency: A measure of how efficiently a product (e.g., a car) produces desired outputs relative to inputs (e.g., miles the car can run per gallon of gasoline used).
• Environmentally sensitive area: An area with natural resources whose destruction or degradation could have serious consequences; examples include sources of drinking water and the habitat of declining or unique species.
• FAA: The Federal Aviation Administration, a U.S. federal entity now part of the Department of Transportation and charged with ensuring aviation safety while encouraging the development of the aviation system.
• FHWA: The Federal Highway Administration, the part of the U.S. Department of Transportation charged with administering the Federal Aid Highway Program and the Federal Lands Highway Program.
• Funicular: A type of cable railway used to move cars up and down a steep slope by means of a permanently attached cable and in which the weights of ascending and descending vehicles counterbalance one another.
• Gasohol: A blend of gasoline and alcohol.
• Grade separation: A method of road construction in which intersecting of roads or railroads occurs at different heights so that the traffic on one does not interfere with the traffic on the other.
• Gross vehicle weight rating: In the context of truck transport, the maximum rated capacity of a vehicle, including cargo, the driver, passengers, equipment, and the vehicle itself.
• Growth management: The use of regulations and planning in an urban area to limit urban sprawl and promote smart growth.
• GVW: Gross vehicle weight, the combined weight of a vehicle and the freight it carries.
• HOV lane: High occupancy vehicle lane, also known as a commuter lane; one or more lanes of a highway reserved (possibly at only certain times) for vehicles carrying more than one passenger.
• Infrastructure: Physical structure such as roads, railway lines, and bridges that support transportation and development.
• Inland and coastal channels: A designation for waterways in the United States that are usable for commercial navigation, including the Mississippi River System, the Great Lakes, the New York State Barge Canal System, the Atlantic Intracoastal Waterway, and the Gulf Intracoastal Waterway, but excluding waterways in Alaska.
• Interstate highway system: In the United States, a designated system of divided, limited-access highways of at least four lanes that connect major cities and industrial areas.
• ISTEA: The Intermodal Surface Transportation Efficiency Act, a 1991 U.S. federal law that required the creation of regional and state long-term transportation plans, increased the role of regional planning commissions and the public, and increased highway and transportation funding.
• LNG: Liquefied natural gas, natural gas that has been made liquid by being cooled to minus 260 degrees Fahrenheit at atmospheric pressure.
• Local street: A street intended to provide access to adjacent properties, as opposed to an arterial.
• Logistics: Methods of moving goods in an optimal matter, delivering the right amount of product to the right location at the right time and at the right price.
• Maglev: A transportation system using magnetic levitation to guide and propel vehicles that are suspended above the tracks.
• Monorail: A rail system based on a single rail rather than the dual rails common to most railroads.
• MSA: Metropolitan Statistical Area, a designation used by the U.S. Office of Management and Budget including one or more urban areas and surrounding territory, all of which form an essentially metropolitan area.
• MSATs: Mobile Source Air Toxics, a group of 21 hazardous air pollutants identified by the U.S. Environmental Protection Agency as generated largely by transportation sources such as cars and trucks; examples of MSATs include benzene, acetaldehyde, and formaldehyde.
• NAAQS: National Ambient Air Quality Standards; standards set by the U.S. federal government specifying the allowable concentrations of six pollutants: carbon monoxide, lead, nitrogen dioxide, ozone, particulate matter, and sulfur dioxide.
• NCHRP: National Cooperative Highway Research Program, a U.S. research, development, and technology transfer program administered by the Transportation Research Board of the National Academy of Sciences.
• NEPA: National Environmental Policy Act, a 1969 U.S. federal law requiring that any project requiring federal approval or using federal funding consider the environmental effects of a proposed action and its alternatives.
• New urbanism: An approach to planning cities or urban areas so they are compact and favor the use of bicycles, foot travel, and public transportation and in which mixed-use areas combining housing, commercial areas, and recreation areas are common.
• NHTSA: The National Highway Traffic Safety Administration, created in the United States in 1972 to reduce the deaths and economic losses from highway automobile crashes and to create mileage standards for vehicles weighing less than 10,000 pounds.
• No objection fee: A fee paid by a charter airline to a scheduled airline so that the scheduled airline will not protest operation of a charter flight; such a fee is considered a bribe in some countries but is common practice in others.
• NOx: Nitrogen oxides, such as nitric oxide (NO) and nitrogen dioxide (NO2), that form a major component of ozone and are produced during high-temperature combustion.
• O3: Ozone, a pollutant formed by three molecules of oxygen and formed by the combination of nitrogen oxides and volatile organic compounds in the presence of sunlight.
• ODS: Operating differential subsidy, an amount paid by the U.S. federal government to American flag-carrier ships to help offset the higher operating costs of U.S. as opposed to foreign vessels.
• Particulate matter: Pollutants consisting of solid particles and liquid droplets that can be suspended in the air and inhaled; coarse particulate matter is in the range of 10 to 2.5 microns in diameter, while fine particulate matter is less than 2.5 microns in diameter.
• Port marks: Letters, numbers, and geometric symbols followed by the name of the port of destination that are placed on export shipments.
• Reformulated gasoline: Gasoline designed to reduce pollutants generated as a by-product of combustion, such as including oxygenates and lowering the content of heavy hydrocarbons, olefins, and volatile components.
• Riprap: Rock or concrete rubble used to protect shorelines, pilings, abutments, and so on from water erosion.
• Semi: Also known as a semi-trailer, a truck trailer without a front axle and which is moved by being coupled to a road tractor.
• Shared roadway: An automobile road with a marked bicycle route but without any physical separation of bicycles and automobiles.
• Shipper carriers: Companies that own their own vehicle fleets to ship their goods; this is a common arrangement for groceries and big box retail stores.
• Shipping conference: An agreement among multiple shipping companies to charge common rates and provide common terms to provide passenger or cargo service over specified routes.
• Shipping lane: A mapped route on the ocean used by commercial ships to avoid hazardous areas.
• Shipping manifest: A document that lists all the items contained in a shipment, along with the end destination of each and the total weight.
• Smart growth: In urban development, a type of growth characterized by efficient land use, mixed-use development integrating housing, commercial development, and recreation, while at the same time preserving open spaces and natural areas; preservation of existing communities is often a consideration also.
• Straphangers: Also known as NYPIRG Straphangers, a group founded in 1979 to represent the interests of people using the New York City subway system.
• Streetcar: As defined by the U.S. Department of Transportation, a lightweight passenger railcar operating on fixed rails; streetcars may or may not have the right-of-way at intersections and may or may not be separated from other traffic.
• Supply chain: The entirety of a manufacturing process, from the acquisition of raw materials to the delivery of finished products, including all the interchanges of materials and information required along the way.
• Tanker: A ship designed to carry liquid bulk cargo such as oil.
• Tare weight: The weight of an empty shipping container or vehicle.
• Third party logistics provider: A company that provides logistics services for other companies, such as transportation, warehousing, and freight forwarding; sometimes abbreviated as 3PL.
• Through bill of lading: A bill of lading that covers goods over a journey from origin to destination, including transfers from one carrier to another.
• TOFC: Trailer on a flat car, also known as piggyback, a method of transporting goods by carrying loaded trailers or railcars on a flatcar.
• Ton: A measure of weight; a short ton is 2,000 pounds, a long ton 2,240 pounds, and a metric ton 2,204.68 pounds.
• Traffic calming: The use of techniques to limit the speed of automobiles and to create safe and pleasant areas for pedestrians and cyclists; examples include the use of speed bumps, curb extensions, and pedestrian islands.
• Transshipment: In international trade, transferring a shipment from one carrier (usually a ship) to another.
• Tugboat: A powered vessel that is not used for transporting goods but for towing or pushing ships, barges, and rafts.
• ULD: Unit load device, a freight container or pallet.
• Underpass: A type of grade separation in which one road passes under a railway or another road.
• Urban sprawl: A type of development characterized by low density, by isolation of housing from commercial and residential development, and that favors automobile travel rather than public transportation, walking, or cycling.
• Waybill: A document used in common carrier freight shipment that contains basic facts about the shipment, including origin, destination, and charges.
• Wet lease: Renting an aircraft with the provision that the owner will provide fuel, the crew, and ground support equipment (as opposed to a dry lease, in which none of those things is provided by the owner).
• Wind rose: A graphical representation of recorded wind speed and direction over a historical period in a particular location.
• York-Antwerp Rules: An international code of rules governing shipping, first established in 1890 and amended in 1924 and 1950.

## Resource Guide

Books
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. Buying the Big Jets: Fleet Planning for Airlines. Burlington, VTAshgate, 2007.
. Stormy Skies: Airlines in Crisis. Burlington, VT: Ashgate, 2010.
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. Urban Transportation Systems: Choices for Communities. New York: McGraw-Hill, 2003.
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. Tomorrow's Energy: Hydrogen, Fuel Cells, and the Prospects for a Cleaner Planet.
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Riding the Roller Coaster: A History of the Chrysler Corporation. Detroit, MI: Wayne State University Press, 2003.
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Human Factors in the Training of Pilots. New York: Taylor & Francis, 2002.
. Fatal Exit: The Automotive Black Box Debate. Hoboken, NJ: Wiley, 2005.
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. Fly by Wire: The Geese, the Glide, the Miracle on the Hudson. New York: Farrar, Straus & Giroux, 2009.
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. Transport for Suburbia: Beyond the Automobile Age. Sterling, VA: Earthscan, 2009.
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Moving Boxes by Air: The Economics of International Air Cargo. Burlington, VT: Ashgate, 2011.
. Forward Drive: The Race to Build “Clean” Cars for the Future. San Francisco: Sierra Club Books, 2000.
, , and , eds. Intelligent Infrastructures. New York: Springer, 2010. http://dx.doi.org/10.1007/978-90-481-3598-1
, ed. Designing High-Density Cities for Social and Environmental Sustainability. Sterling, VA: Earthscan, 2010.
, , et al., eds. Highways: The Location, Design, Construction and Maintenance of Road Pavements. Boston: Butterworth-Heinemann, 2002.
. Gridlock: Why We're Stuck in Traffic and What to Do About It. Washington, DC: Cato Institute, 2009.
and . Applied Human Factors in Aviation Maintenance. Burlington, VT: Ashgate, 2004.
. Automobile Politics: Ecology and Cultural Political Economy. New York: Cambridge University Press, 2007.
Privatisation and Regulation of Urban Transit Systems. Paris: Organisation for Economic Co-operation and Development/ITF, 2008.
Road Safety: Impact of New Technologies. Paris: Organisation for Economic Co-operation and Development, 2008.
Air Pollution Control and Climate Change Mitigation Law,
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. Sustainable Transportation Planning: Tools for Creating Vibrant, Healthy, and Resilient Communities. Hoboken, NJ: Wiley, 2012.
, et al. Deregulation and Competition: Lessons From the Airline Industry. Thousand Oaks, CA: Sage, 2007.
Building for a Changing Climate: The Challenge for Construction, Planning and Energy. Sterling, VA: Earthscan, 2010.
. Hydrogen and Fuel Cells: Emerging Technologies and Applications,
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, ed. Advances in Human Aspects of Road and Rail Transportation. New York: Taylor & Francis, 2013.
, et al. Improving Rural Mobility: Options for Developing Motorized and Nonmotorized Transport in Rural Areas. Washington, DC: World Bank, 2002. http://dx.doi.org/10.1596/0-8213-5185-0
, , and Transforming Cities With Transit: Transit and Land-Use Integration for Sustainable Urban Development. Washington, DC: World Bank, 2013. http://dx.doi.org/10.1596/978-0-8213-9745-9
Looking Beyond the Runway: Airlines Innovating With Best Practices While Facing Realities. Burlington, VT: Ashgate, 2010.
The Passenger Has Gone Digital and Mobile: Access and Connecting Through Information and Technology. Burlington, VT: Ashgate, 2011.
, ed. Sustainable Transport Planning for Walking and Cycling in Urban Environments. Cambridge, UK: Woodhead, 2003.
Transit: Planning and Development, Management and Performance, Marketing and Fare Policy, and Intermodal Transfer Facilities. Washington, DC: Transportation Research Board, National Academy of Sciences, 2003.
Urban Transit: Operations, Planning and Economics. Hoboken, NJ: Wiley, 2005.
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The Electric Car: Development and Future of Battery, Hybrid and Fuel-Cell Cars. London: Institute of Electrical Engineers, 2001. http://dx.doi.org/10.1049/PBPO038E
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. Airline Operations and Delay Management Insights From Airline Economics, Networks, and Strategic Schedule Planning. Burlington, VT: Ashgate, 2009.
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Journals
Air Cargo Report
Air Cargo World
Air Pollution Consultant
Air Traffic Management
Air Transport
Air Transport World
Annals of Regional Science
Aviation and Aerospace Almanac
Aviation Daily
Aviation Education
Aviation Law Reporter
Bicycle Retailer and Industry News
Bicycling
Biodiesel Magazine
Biomass Magazine
Cities and the Environment
Cityscape: A Journal of Policy Development and Research
Energy and Environment
Energy Technology Perspectives
Global Highways and Railtracks
Global Transportation
Green Power and Market Research News
Hart Ethanol and Biodiesel News
Highway and Urban Mass Transportation
Housing, Building and Planning
HUD International Bulletin
IEEE Transactions on Sustainable Energy
IET Renewable Power Generation
International Journal of Sustainable Energy
International Journal of Urban and Regional Research
Journal of Architectural and Planning Research
Journal of Environmental Planning and Management
Journal of the American Planning Association
Journal of Urban Design Journal of Urban Planning and Development
Landscape and Urban Planning
Open Renewable Energy Journal
Open Urban Studies Journal
Papers in Regional Science
Renewable Energy Review of Urban and Regional Development
Studies Safety Management Information Statistics
Town Planning Review
Traffic World Transit Law Review
Transportation
Transportation and Distribution
Transportation Energy Research
Transportation Human Factors
Transportation Journal
Transportation Law Journal
Transportation Quarterly
Transportation Research
Transportation Research Abstracts
Transportation Research News
Transportation Science
Urban Affairs Review
Urban Morphology: Journal of the International Seminar on Urban Form
Urban Studies
Internet Sites
Air Cargo World
American Public Transportation Organization
Amtrak
Council on Environmental Quality: National Environmental Policy Act
European Commission: Transportation
Global Rail News
International Air Travel Association
Lawrence Berkeley National Laboratory: Indoor and Outdoor Air Pollution
National Renewable Energy Laboratory: Biofuels Basics
Natural Resources Defense Council: Smart Growth
NYPIRG's Straphangers Campaign
Rail Europe
Smart Growth Online
UNIFE: The European Rail Industry
United Nations Department of Economic and Social Affairs: Transport
United Nations Economic and Social Commission for Asia: Transport Division
United Nations Economic Commission for Europe: Transportation
United Nations Environment Program: Transport
U.S. Department of Transportation
U.S. Environmental Protection Agency: Smart Growth
World Bank: Transport
Sarah E. Boslaugh
Kennesaw State University

## Appendix A: Central Intelligence Agency, The World Factbook Country Comparisons: Transportation

Table 1 Country comparison: Airports

Table 2 Country comparison: Railways

Table 4 Country comparison: Waterways

Table 5 Country comparison: Merchant marine

## Appendix B: Freight Transportation: Global Highlights 2010

Acknowledgments

U.S. Department of Transportation

Ray H. LaHood

Secretary

Peter H. Appel

Bureau of Transportation Statistics

Steven D. Dillingham, Ph.D.

Director

Steven K. Smith, Ph.D.

Deputy Director

Produced under the direction of:

Deborah D. Johnson

Assistant Director, Office of Transportation Analysis

Project Manager

Long X. Nguyen

Major Contributors

Felix Ammah-Tagoe, Ph.D.

Shana Johnson

Stephen Pelletier

E-Ternational

Other Contributors

Steve Anderson

Steve Beningo

Matt Chambers

Jacob Hommeland

Sean Jahanmir

Steve Lewis

RITA Editor

William H. Moore

RITA Visual Information Specialist

Alpha Wingfield

Introduction

To move large quantities of goods across the country and around the world, Americans depend on the Nation's freight transportation system—a vast network of roads, bridges, rail tracks, airports, seaports, navigable waterways, pipelines, and equipment. Today, U.S. households can buy fresh fruits and vegetables in mid-winter, expect fast and reliable next-day deliveries of Internet purchases, and use electronic appliances manufactured thousands of miles away, often in other countries. Because economic activities worldwide have become more integrated and globalized, more goods produced by U.S. factories and farms are bound for export, and imports originate from more than 200 countries. This pace of trade Americans have become accustomed to is made possible by the complex intermodal transportation network that blankets the country and links the United States with world markets.

The movement of international freight among nations relies on a complex array of long-distance transportation services. The process involves many participants, including shippers, commercial for-hire carriers, third-party logistics providers, and consignees. Moreover, global trade depends on seaport and airport services to move large volumes of merchandise over long distances via a variety of transportation modes. The interaction of these services and participants is vital to successful global trade.

In 2008, U.S. carriers received $22 billion for commercial freight services provided to businesses in other countries. U.S. seaports and airports received$36 billion for port services. U.S. firms paid $45 billion to foreign carriers for freight services and$27 billion to foreign ports for port services (USDOC BEA 2009).

This report provides a snapshot of freight transportation activity from a global perspective, highlighting physical characteristics and industry output for the U.S. and other leading world economies. The report gives a broad overview of trends in the movement of international freight among the top 25 world economies, measured by 2008 gross domestic product (GDP). It presents recent statistics on freight activity by leading global ocean and air carriers, seaports, and airports engaged in international freight services.

The report also presents an overview of major trends in U.S. international goods trade, as well as trends in U.S. freight and port services. It further examines how U.S. international freight activities compare with those of the world's top economies. The report concludes with a brief discussion of the key factors that are driving change in U.S. and global merchandise trade and freight activities.

Overview

The United States has the largest freight transportation system in the world, an extensive physical network of infrastructure and entities that provide transportation services:

• 4 million miles of public roads,
• 140,000 miles of railroad tracks operated by freight carriers,
• 25,000 miles of navigable waterways,
• 9,800 coastal and inland waterway facilities, and
• 5,200 public-use airports (USDOT RITA BTS 2009a).

The U.S. transportation network serves more than 300 million people and 7.5 million business establishments across 3.8 million square miles of land. Moving raw materials and finished goods between production and consumption centers, this freight network is a vital component of commerce in the United States.

The United States is the world's largest economy and leading importing nation, accounting for 23 percent of world GDP and 13 percent of the value of world merchandise imports in 2008.1 Before 2002, the United States was the world's largest merchandise exporter. Germany became the leading exporting nation that year, and China moved to the top position in 2008.2

Despite recent setbacks caused by the 2008 U.S. and global economic downturn, the movement of freight globally shows a long-term upward trend. From 1998 to 2008, world merchandise freight exports nearly tripled in value from $5.4 trillion to$16 trillion. During this period, U.S. freight exports doubled from $682 billion to$1.3 trillion (USDOC CB FTD 2009). The rising trend in world exports indicates the strong interconnectedness among countries and the increased globalization of economic activities that generate freight movements.

While virtually all countries export goods and the United States receives exports from more than 200 countries, the overwhelming majority of global exports are concentrated in only a few countries. In 2008, the concentration of world exports among the top trading nations was significant:

• more than half (51 percent) of the exports were from 10 countries,
• three-quarters (76 percent) were from 25 countries, and
• about 91 percent were from the top 50 countries.
Overall Trends

Freight is generated by economic activity and the freight industry tends to respond to fluctuations in this activity and the resultant level of trade among nations. The 2008 global economic downturn caused by the collapse of major financial markets resulted in declines in U.S. merchandise trade with partners around the world. From mid-2008 to early 2009, as the U.S. and global economies struggled, world trade sagged and the movement of international goods by service providers slowed. By the second quarter of 2009, demand for U.S. and global freight shipments had plummeted. Financial liquidity problems and fluctuations in energy prices affected all modes of freight transportation and all sectors of the freight industry.

Before 2008, the global freight industry's primary challenge was growth in merchandise trade and the freight flows that strained system capacity. In 2009, declines in freight flows transformed the major challenge into the management of excess capacity. Shippers, carriers, and facility operators in the United States and around the world were forced to contract their freight operations in response to reduced trade volumes. By the end of September 2009, an estimated 548 container vessels with a carrying capacity of 1.3 million 20-foot equivalent units (TEUs) were idled at seaports worldwide as a result of the decline in global demand for containership services (AXS-Alphaliner 2009a).

The slowdown in economic activity in the United States and globally in 2008 and the subsequent reduction in U.S. consumer demand also affected international air cargo traffic and capacity. Global international air cargo, measured in freight ton-kilometers, fell 23 percent from 2007 (IATA 2009a).3 During the second half of 2008, air carriers around the world struggled with excess capacity and lower revenues. In particular, carriers were negatively affected by global reductions in oil prices. In principle, declining oil prices should have resulted in lower fuel costs for the airlines, but fuel-hedging contracts taken out at the start of the year when prices were much higher resulted in unexpected financial losses (IATA 2009a).4 By mid-2009, overall demand for air cargo and maritime freight had slowed because of weak economic activity and distressed financial markets.

• The global freight transportation infrastructure handles large volumes of cargo. In 2008, more than $16 trillion of exported freight was transported worldwide. Maritime vessels, airplanes, trucks, and trains transported these goods from production centers to consumption markets. • In 2008, the top three global merchandise exporters—China, Germany, and the United States—accounted for 26 percent of the value of total worldwide freight exports. Figure 2. Goods Exports From Top Economies and Percent Share to the United States: 2008 • In 2008, about 13 percent of world freight exports from more than 200 countries ($2.1 trillion out of $16 trillion) were bound for the United States. Of this amount, 55 percent was oceanborne cargo, 20 percent was air cargo, and about 25 percent was carried by land modes of transportation (USDOC CB FTD 2009). • For the United States' top three trading partners, the proportion of their exports bound to the United States were: • Canada, 78 percent; • China, 19 percent; and • Mexico, 80 percent. International Overview and Physical System A significant proportion of global freight originates from the world's leading economies. In 2008, the world's top five economies by Gross Domestic Product GDP—the United States, Japan, China, Germany, and France—together accounted for: • 35 percent of global goods exports ($5.6 trillion out of $16 trillion), • 50 percent of global GDP ($30.1 trillion out of $60.9 trillion), and • 28 percent of world population (1.9 billion out of 6.8 billion people).5 Overview of Leading Economies • In 2008, the United States remained the world's leading economy, a position that directly reflects the level and composition of U.S. international freight transportation compared to that of the other large economies. China ranked third, a position that indicates its trade activity with the United States and freight shipments between the two countries. Table 2. Geographic Overview of World's Top Economies: 2008 • The relatively larger area, lower population density, and higher urban population of the United States, in comparison to other countries, leads to relatively more freight activity. Freight must be transported greater distances as goods are shipped from production centers to consumers. Table 3. Extent of Physical Transportation Systems in World's Top Economies: 2008 • The United States has the world's most extensive freight transportation network when measured in kilometers of public-use paved roads, railways, waterways, and pipelines, and number of airports. Table 4. Intensity of Physical Transportation Systems of World's Top Economies: 2008 • When road networks are viewed in relation to total land area, countries such as Japan, the United Kingdom, and France have at least twice as many kilometers of roadways per square kilometer of land area as the United States. However, if road networks are viewed in relation to population, those three countries have fewer roadway kilometers per person than the United States—the result of the lower population density and vast geographic expanse of the United States. Table 5. U.S. Share of World Gross Domestic Product: 1990–2008 (Billions of current U.S.$)

• Trends in global economic activities directly affect the volume of merchandise trade and worldwide movement of freight. The growing reliance on global supply chains means the effect of an economic downturn is not limited to exporting and importing nations. Other nations that provide freight and port services to transport traded goods are also affected.
• Between 2001 and 2008, the U.S. share of world GDP declined as the share of emerging and developing economies grew. Many other factors contributed to this trend, including foreign currency exchange rates, business cycles, balance of payments, and central banks policies—all of which affect the value of internationally traded goods.

Figure 3. U.S. Share of World Gross Domestic Product and Merchandise Exports: 1990–2008

• The U.S. share of world GDP and merchandise exports increased from 1995 to 2001 during the “dot-com boom” period of U.S. economic expansion. Since 2001, the expansion of developing economies in Asia—notably China's economy—contributed to the decline of the U.S. share of world GDP and merchandise exports.
• Top goods exports from the United States include civilian aircraft and parts, motor vehicles and parts, electrical equipment, electronics, and medical equipment (USDOC CB FTD 2009).
World and U.S. International Freight
• In 2008, the United States was the world's third-ranked exporting nation, behind China and Germany. U.S. goods exports accounted for 8 percent of the value of worldwide exports.
• Among the world's top exporting nations, Canada and Mexico ranked 10th and 15th, respectively.
• The majority of exports from Canada and Mexico continue to be bound for the United States. Most enter by surface modes of transportation.
• The United States received nearly one-fifth (19 percent) of the exports from China. The top exports from China to the United States include finished goods such as computer equipment, electronics, toys, apparel, furniture, and other household goods.

Table 7. World's Top Merchandise Importing Countries and Their Imports From the United States: 2008 (Millions of current U.S. $) • The United States is the world's largest importer of goods. Crude oil, petroleum products, passenger motor vehicles, electrical machinery, and electronics are among the top imports by value (USDOC CB FTD 2009). • Canada, Mexico, and Brazil's imports from the United States account for a large proportion of their overall imports. • Over half of Canada's imports are from the United States. Canada's top imports from the United States include passenger cars, trucks, buses, vehicle parts, and civilian aircraft. • Nearly half of Mexico's imports are from the United States. The top imports from the United States are motor vehicles and parts, electronic equipment and parts, electrical apparatus, and petroleum products. • The United States accounted for about 15 percent of imports into Brazil, an important emerging economy. Top imports into Brazil from the United States include civilian aircraft and parts, computer equipment, and telecommunications equipment. • In 2008, China imported less from the United States ($81 billion) than it exported to the United States ($273 billion). Its imports from the United States accounted for 7 percent of the country's total imports, and its exports to the United States accounted for 19 percent of its total exports. Figure 4. U.S. Share of World Merchandise Trade: 1990–2008 • From 1990 to 2008, the U.S. share of the world's total imports was larger than its share of exports. During this period, the U.S. share of total exports fell faster than its share of the world's total imports (IMF 2009). Worldwide Oceanborne and Air Freight Businesses rely on all freight modes to transport international merchandise trade. Often, goods are moved by a multimodal combination of airplanes, maritime vessels, trains, and trucks. Figure 5. Worldwide Oceanborne Cargo Figure 6. Worldwide Air Cargo • In 2007, the most recent year for which data are available, the volume of worldwide international oceanborne cargo reached more than 8 billion tons. During the past decade, the annual average growth rate was about 3 percent. • Worldwide international air cargo reached 28 million tons in 2007, growing at an annual average rate of 5 percent over the past decade. This growth trend reflects continuing globalization of economic activities and increasing adoption of inventory management strategies. • By weight, the overwhelming majority of global overseas merchandise trade is carried by ocean vessel rather than airplane (excluding land modes of transportation). While generally ocean vessels transport low value-per-ton commodities (e.g., crude oil, grains, and coal), container vessels transport high value-per-ton manufactured goods of all kinds, such as automobiles, appliances, computer equipment, and apparel. Figure 7. Worldwide Overseas Oceanborne and Air Cargo by Weight: 1995–2007 • By weight, air carriers carry less global merchandise trade than ocean vessels. Air carriers transport high value-per-ton commodities. During the past decade, however, the tonnage of air cargo transported globally grew at a faster rate than total oceanborne cargo. • Air cargo tonnage grew as demand for international express traffic increased and shippers sought more time-definite deliveries. While ocean carriers provide lower transportation costs, air carriers provide faster delivery times. • Containerized cargo, a segment of the maritime industry that, like air cargo, includes high value-per-ton goods, grew faster than air cargo and total oceanborne cargo during this period. Table 8. Value and Weight of Worldwide and U.S. Oceanborne Export Freight: 1995–2007 • Between 1995 and 2007, world oceanborne export freight, as measured by weight, nearly doubled to 8 billion short tons. By comparison, the total weight of U.S. oceanborne exports remained steady. • The weight, value, and physical characteristics of oceanborne cargo determine the type of vessels used for particular shipments (tanker, container, or bulk) and the seaports where they call. In 2008, Houston was the leading U.S. port by weight and Los Angeles was the top container port (USDOT RITABTS 2009b). Figure 8. Worldwide and U.S. Maritime Industry Ton-Miles: 1995–2007 • During the past decade, the demand for maritime freight services, as measured by ton-miles, grew faster globally than for U.S. international freight. From 1995 to 2007, global maritime ton-miles grew at an average annual rate of 4 percent. Ton-miles grew less than 1 percent for the United States over the same period. • Global ton-miles grew faster as China and other countries increased oil imports from places other than the Middle East (e.g., Angola) and increased purchases of dry bulk cargo (e.g., iron ore) from South America (UNCTAD 2008). Figure 9. U.S. Air Carriers' Share of Worldwide International Tons and Revenue Ton-Kilometers: 1995-2008 • In 2008, U.S. air carriers carried about 4.4 million tons of international air cargo, accounting for 18 percent of the 25 million tons transported globally in international service. U.S. air carriers' international cargo traffic generated 33 billion revenue ton-kilometers, accounting for 25 percent of about 131 billion revenue ton-kilometers of global international air cargo traffic. • Since 2005, the U.S. share of world air cargo tonnage and ton-kilometers has declined as the annual growth rates of Asia's air cargo markets increased. Worldwide Ports Worldwide Oceanborne and Air Freight Seaports and airports are vital components of the freight system. They enable global trade and facilitate international economic activities. In 2007, ports worldwide handled more than 8 billion tons of oceanborne exports and more than 25 million tons of international air cargo. This freight included raw materials, manufactured products, and everyday items found at businesses and homes, such as laptop computers, precision medical instruments, flat-panel televisions, bicycles, and furniture. • By weight, 7 of the world's top 10 seaports in 2007 were in China. Three U.S. ports—South Louisiana, Houston, and New York/New Jersey—ranked among the top 25. • In 2008, three U.S. ports—Los Angeles, Long Beach, and New York/New Jersey—ranked among the top 20 world container ports. Six of the top 10 were in China. Table 11. Top World Airports for International Air Freight by Tons Handled: January to June 2009 (Thousands of metric tons) • By June 2009, five U.S. airports—Miami, Ted Stevens Anchorage, John F. Kennedy, Los Angeles, and O'Hare—ranked among the world's leading airports for international air cargo traffic as measured by tons handled. Table 12. Top World Airports for International Air Freight by Tons Handled: 2007–2008 (Thousands of metric tons) • In 2008, most of the world's leading airports for handling international cargo experienced declines in freight traffic compared to the previous year. • All 5 U.S. airports ranked among the world's top 25 air freight airports—Miami, Ted Stevens Anchorage, John F. Kennedy, O'Hare, and Los Angeles—shipped less freight in 2008 than in 2007. Worldwide Freight Carriers Shipping lines, airlines, all-cargo air couriers, trucking firms, and railroads provide services that link shippers, ports, and consignees. Managing product supply chains and transporting goods globally involves considerable interaction across the carrier industry. During the past decade, businesses expanded sourcing of raw materials and finished goods from multiple locations around the world, and the air and ocean freight carrier industries that provide overseas services adapted their freight operations in response. Globally, the leading all-cargo air carriers include FedEx, UPS, DHL, and TNT. Leading airlines that provide cargo services include Lufthansa, Korean Air Lines, Singapore Airlines, British Airways, and Air France (IATA 2009b). The air-freight carrier industry continued its heavy reliance on hub-and-spoke operations6 that allow carriers to connect several origins with multiple destinations without having all the points connected directly. Expanded use of hub networks allowed the airlines to control fleet size and capacity while serving many markets. It also allowed them to cut operating costs and offer improved integrated cargo delivery services. Airlines that carry commercial freight in aircraft cargo holds during passenger flights continued to expand their cargo services beyond their immediate networks by forming alliances. Examples of industry alliances among the leading airlines include United-Lufthansa, Northwest-KLM, Delta-China Airlines, and American Airlines-Mexicana Airlines. Worldwide, the leading ocean container carriers include APM-Maersk Line, Mediterranean Shipping Company, CMA CGM, Evergreen Line, and American President Lines (APL) (AXS-Alphaliner 2009b). During the past decade, the ocean-shipping industry continued consolidations begun in the 1990s. Carriers engaged in vessel-sharing arrangements7 that allowed them to serve multiple ports by connecting to larger hub seaports. These hub ports provide feeder vessel services to smaller ports and often use intermodal rail and truck carriers for deliveries to final destinations. Some of the major inter-carrier alliances, mergers, and acquisitions include Maersk and Sea-Land, Neptune Orient Line and APL, and Maersk and P&O Nedlloyd. In April 2008, the world's three largest container lines—Danish carrier Maersk Line, Swiss carrier Mediterranean Shipping Company, and French-based CMA–CGM—started a significant vessel-sharing agreement in the Asia-North America trade lane that enables them to replace their own individual services with joint services (Maersk Line 2008). In September 2009, Maersk Line and CMA CGM merged services between the east coast of South America, Central America, and the Caribbean (Maersk Line 2009). Table 13. Leading World Maritime Container Carriers by Fleet Size: September 2009 (Ranked by TEUs) Table 14. Leading World Air Carriers by Weight of International Cargo Handled: 2008 RankAirlineThousands of tons 1Fed Ex1,891 2UPS1,603 3Korean Air1,438 4Emirates1,382 5Cathay Pacific Airways1,339 6Singapore Airlines1,274 7United Airlines1,257 8Lufthansa1,157 9China Airlines1,086 10Cargolux794 11Air France786 12European Air Transport (EAT)733 13British Airways708 14EVA Air681 15Japan Airlines679 16Asiana Airlines672 17KLM-Royal Dutch Airlines604 18Thai Airways536 19LAN503 20Malaysia Airlines468 21Air China429 22China Eastern Airlines421 23Qatar Airways402 24Northwest Airlines345 25American Airlines336 SOURCE: U.S. Department of Transportation, Research and Innovative Technology Administration, Bureau of Transportation Statistics, based on data from International Air Transport Association, World Air Transport Statistics, 53rd Edition,http://www.iata.org as of Oct. 16, 2009. • The top world air carriers, FedEx and UPS, also own and operate a fleet of trucks and use rail service to provide multimodal shipping services to shippers. • United, Northwest, and American, ranked here among the top 25 global carriers for international cargo, are best known for passenger service. Table 15. Selected Leading U.S. Air All-Cargo, Rail, and Trucking Freight Carriers by Operating Revenues: 2005-2008 (Millions of$)

U.S. Trends
Worldwide Oceanborne and Air Freight

In 2008, U.S. freight gateways handled more than $3.4 trillion (in current dollars) of international merchandise trade. From 2007 to 2008, merchandise exports rose 12 percent, and imports rose 7 percent. Since 1990, the leading U.S. freight gateways have handled increasing volumes of freight as the movement of traded goods to and from the United States has expanded. From 1990 to 2008, the value of U.S. international merchandise trade grew from$889 billion to $3.4 trillion, increasing at an average annual rate of 8 percent. In inflation-adjusted terms (using chained 2000 dollars), this trade grew about 7 percent per year, from$837 billion to more than $2.6 trillion. During this period, the growth in merchandise trade spurred the development of marine, air-cargo, and border-crossing facilities to connect domestic U.S. origins and destinations to markets abroad. Modal View Figure 10. Modal Shares of U.S. Merchandise Trade Handled by Land, Water, and Air Gateways by Value and Weight: 20071 • Nearly all shipments require the use of more than one mode of transportation to reach their final destinations. For example, a shipment of imported goods arriving at a maritime port is transferred to rail or truck to continue its journey. Railroads tend to carry commodities long distances at low prices, while trucks often carry commodities shorter distances and more quickly. • Waterborne vessels account for more U.S. international trade, both in terms of tonnage and value, than any other mode—78 percent of the weight and 45 percent of the value of U.S. merchandise trade in 2007. Water transportation is less dominant in terms of value because high value-per-ton commodities often move by air and truck, particularly in U.S. trade with Canada and Mexico. • Intermodal rail traffic—the transport of containers or truck trailers by rail—has significantly increased during the past two decades. Freight Carrier and Port Services Figure 11. U.S. International Freight and Port Services Trade: 1990–2008 • Freight carriers transport international cargo between the United States and its trading partners around the world. In addition to trade in merchandise, the United States buys (imports) and sells (exports) freight services via the various transportation modes. The freight and port services sector includes several industries, including carriers, ports, terminal operators, and third-party logistics providers, such as freight forwarders and consolidators. • In 2008, U.S. trade in freight and port services was$131 billion. Receipts for exports were $59 billion, and payments for imports were$72 billion. Of the $131 billion, 52 percent ($68 billion) was for freight services and the remainder was for port services.

Table 16. U.S. International Freight and Port Services Trade: 1990–2008 (Billions of current $) • In 2008, U.S. receipts for freight transportation services totaled$22 billion, double the amount in 1998. Payments for freight services were $45 billion, more than twice the amount in 1998. • From 1998 to 2008, receipts and payments for port services more than doubled, to$37 billion and $27 billion respectively. Box a U.S. Third-Party Logistics Providers Industry An important segment of the movement of U.S. international freight is the third-party logistics providers industry. The Council of Supply Chain Management Professionals defines third-party logistics (3PL) as the “outsourcing all or much of a company's logistics operations to a specialized company.” Such outsourcing, allows shippers to focus on their core business activities while entrusting transportation, warehousing, customs-related, and other value-added activities to specialists able provide such services. In the United States, the use of 3PL providers by both large and small businesses has increased over time. Figure 12 shows the gross revenues of the U.S. 3PL industry from 1996 to 2008. Figure 12. Gross Revenues of the U.S. Third-Party Logistics Providers Industry: 1996–2008 Classification of 3PLs. The third-party logistics providers (3PL) industry could be categorized into asset-based and nonasset-based companies. Asset-based 3PLs own their own trucks and distribution centers. They are more suitable for large corporations requiring long-term contracts and value-added international transportation management services (Cain 2007). Asset-based 3PLs often work in conjunction with freight forwarders. Nonasset-based 3PLs do not own the vehicles or equipment used in providing their services. These firms are the majority of 3PLs. They contract with trucking companies, other carriers, and distribution centers for whatever they need to fulfill their services. This provides them more flexibility than the asset-based firms and they are able to offer expedited and customizable supply chain solutions. Nonasset-based operators include air freight forwarders, truck freight brokers, intermodal marketing companies, and distribution entities (Cain 2007). Outsourcing to 3PLs. Over the past decade, many companies have turned to outsourcing services not core to their line of business (Capgemini et. Al. 2009). Transportation and warehousing are the two most frequently outsourced activities. Table 17 summarizes the most common outsourced operations. Table 18 shows the leading global 3PL providers in 2008. Table 17. Outsourced Logistics Services: 2008 (Percent of outsourced operations) Table 18. Top 15 Global Third-Party Logistics Providers: 2008 ProvidersGross revenues (millions) DHL Supply Chain & Global Forwarding37,100 DB Schenker Logistics21,000 Kuehne & Nagel20,087 Nippon Express19,014 Panalpina9,855 CEVA Logistics9,304 UPS Supply Chain Solutions9,055 C.H. Robinson Worldwide8,579 DSV Solutions Holding A/S7,094 Geodis7,000 Agility6,474 SDV International Logistics5,851 Sinotrans5,743 Expeditors Int'l of Washington5,634 DACHSER GmbH & KG5,292 SOURCE: U.S. Department of Transportation, Research and Innovative Technology Administration, Bureau of Transportation Statistics, based on Armstrong & Associates, Inc. A&A's Top 50 Global Third-Party Logistics Provider (3PL) List, available at http://3plogistlcs.com as of Nov. 1, 2009. Summary. Third-party logistics (3PL) providers are an important class of logistics intermediaries operating in the freight industry. These firms receive more than$100 billion in revenues and make more than $50 billion in payments to transportation carriers. While 3PLs are important to the freight industry, there is little information about the commodities they help transport and the value and tonnage of those commodities. References 2007. Are You Ready for a Third Party Logistics Provider?Multichannel Merchant, Sept 26, 2007. Available at http://multichannelmerchant.com/opsandfulfillment/3PL_outsource/index.html. Capgemini, Georgia Institute of Technology, Oracle, and Panalpina, The State of Logistics Outsourcing, Results and Findings of the 14th Annual Study, 2009. Available at http://3plstudy.com/index.php?p=2009-3pl-study as of Nov. 1, 2009. Summary There are dynamic industry-wide changes that continue to influence and shape the global freight industry as worldwide international trade is transformed by the global economy. The principal forces that are likely to affect future international merchandise trade and freight movements include the following: • changes in U.S. reliance on imported consumer products, • China's expanded role in the world economy and global trade, • fluctuations in fuel prices and transportation costs, • environmental concerns, and • a rise in Internet shopping and on-demand deliveries. These global forces and the pace of U.S. reliance on imported consumer products may affect the movement of freight from, to, and within the United States. Increased freight movements resulting from future resumption of growth in worldwide merchandise trade could affect U.S. freight gateways and the relative dominance of particular seaports, airports, and land border crossings. Principal Forces of Change Changes in U.S. reliance on imported consumer products. Like other leading world economies, the United States has seen its domestic economy shift from manufacturing and agriculture to an emphasis on service and information industries (USDOT FHWA 2007a). As the output of the U.S. information and service sectors expanded, American demand for consumer goods continued to increase steadily over the last two decades (Moran and McCully 2001). At the same time, U.S. businesses outsourced more parts and finished products from trading partners around the world. Together, those trends led the United States to rely more significantly on imports of consumer goods to meet growing domestic demand for manufactured products. A resumption of growth in U.S. demand for foreign consumer goods would spur an increase in international freight handled by U.S. gateways. China's expanded role in the world economy and global trade. As the world's largest developing economy, China has emerged as a significant force in global trade. Since China opened its markets, its economic impact in the world has expanded rapidly. During the past two decades, China increased its industrial output and became the world's top manufacturer (CRS 2007). In 2008, China was the United States' second leading trading partner. China was also a top trading partner for the world's other developed economies, including Japan and the European Union. Continued growth in China's economic position, coupled with its continuing demand for raw materials and parts from around the world, will significantly fuel growth in global merchandise trade and freight movements. Fluctuations in fuel prices and transportation costs. In 2007 and 2008, concerns about increased fuel prices and transportation costs emerged as oil price fluctuations seriously impacted freight carriers. When fuel prices rise, transportation costs become more important relative to the cost of inventory or shipping (Hummels 2009). If wide fluctuations in fuel prices continue in coming years, they could have the effect of reconfiguring global production, distribution, and freight transportation services. Significant fluctuations in world fuel prices could seriously affect the financial performance of freight carriers engaged in international trade, and could also change industry alliances and recent patterns of carrier cooperation. Environmental concerns. While freight transportation is essential to continued economic growth, like other industrial activities it can have an unintended and negative impact on environmental quality (USDOT RITA BTS 2008). Some of the most prominent environmental concerns surrounding freight transportation include the following: • Climate change. Transportation is the second-largest source of greenhouse gases, accounting for a significant proportion of the world's carbon dioxide emissions. • Pollution, water, and air quality. Pollutants produced through the operation of the freight trucks—such as carbon monoxide, ozone, nitrogen oxide, and sulfur dioxide—contribute to climate change and harm human health. The use of larger maritime vessels increases the need for harbor dredging and increases the amount of ballast water produced, a factor that can help introduce nonindigenous aquatic species into waterways. • Land-use compatibility around maritime ports. Increased port traffic exacerbates congestion on landside transportation systems, increasing vehicle delays and emissions. Global and national actions aimed at mitigating these environmental impacts could potentially affect the worldwide freight industry in terms of future technology adoption, performance, and growth. Rise in Internet shopping and on-demand deliveries. The continued popularity and acceptance of Internet shopping, coupled with increased adoption of just-in-time inventory management by shippers globally, has had an impact on how freight moves. Internet shopping requires carriers to deliver goods to end users rather than to intermediaries, resulting in overall growth in direct shipments to customers (USDOT FHWA 2007b). Together, these trends have increased the number of shipments, particularly small shipments, that carriers handle, and expanded the number of links in the freight supply chain that are needed to deliver goods to their final destination. Summary and Conclusion Globally, more than 8 billion tons of freight moved in international maritime and air transportation in 2008. Avast number of vessels, aircraft, and vehicles operated by several freight carriers moved these goods around the world. The major highlights of this report include the following: • The majority of international freight transported worldwide comes from a few countries. In 2008, more than three-quarters of exported freight were from only 25 countries. • From mid-2008 to mid-2009, as global economic activities slowed, goods transported worldwide by ocean carriers and airlines fell. • Since 2001, U.S. shares of world GDP and exports have fallen as the share of developing Asian countries, particularly China, increased. • Ocean carriers continue to transport the majority of internationally traded goods. During the past decade, worldwide containerized cargo grew faster than air cargo. • In 2008, three U.S. seaports—South Louisiana, Houston, and New York/New Jersey—ranked 13th, 16th, and 21st, respectively among the world's top ports. • Among the world's top container ports, Los Angeles, Long Beach, and New York/New Jersey ranked 16th, 17, and 20th, respectively. • Among the world's top airports, Miami, Ted Stevens Anchorage, and John F. Kennedy ranked 10th, 12th, and 15th, respectively. Changes in the global economic situation as well as trade between nations will continue to affect the choices of transportation modes used in transporting traded goods around the world and in the United States. Resumption of growth in worldwide merchandise trade is likely to create more demand for intermodal freight services. Continued integration of global economic activities and resumption of growth in oceanborne and air cargo would increase demand for freight transportation services. Global economic activities will continue to shape where and how goods are produced and distributed. Expanded trade among countries will ultimately affect the movement of freight internationally as well as into and out of the United States. Fuel costs, changes in logistics supply chains, out-sourcing, just-in-time inventory management systems, and online shopping could impact the demand for freight transportation. Supplemental Tables Table A-1. World's Leading Economies by Gross Domestic Product: 1995, 2000, and 2008 Table A-2. World's Top Merchandise Exporting Countries and their Exports to the United States: 2008 (Millions of U.S.$)

Table A-3. World's Top Merchandise Importing Countries and Their Imports from the United States: 2008 (Millions of U.S. $) Table A-4. Value and Modal Shares of U.S. International Merchandise Exports by Major Trading Partners: 2008 Table A-5. Value and Modal Shares of U.S. International Merchandise Imports by Major Trading Partners: 2008 Table A-6. World and United States International Merchandise Trade: 1990–2008 Table A-7. Trends in World and U.S. Air Revenue Freight for Total and International Services: 1995–2008 1 This report analyzes trends in U.S. and global international merchandise trade and freight in terms of value because aggregate data for both exports and imports by weight are not available for all modes of transportation. 2 In this report, China refers to the People's Republic of China. Data for Hong Kong are reported separately. 3 This report uses metric ton-kilometers instead of ton-miles to describe trends in air cargo because it is the standard industry unit of measure when comparing air freight activity among countries. Most countries report their air cargo data in metric ton-kilometers. 4 Fuel hedging can negatively impact an airline if the price of jet fuel falls below the contracted price for future fuel deliveries, forcing the carrier to compete with those airlines purchasing fuel at the market rate. By mid-2008, crude oil sold for about$140 a barrel. Prices declined to less than $50 a barrel by end of the year as global economic activities slowed. Consequently, carriers who hedged in anticipation of higher prices recorded major losses in the fourth quarter of 2008. 5 China accounted for more than 1.3 billion people. 6 Hub-and-spoke operations describe a route structure in which airlines arrange flights like a wheel with all traffic moving along spokes to and from a central location—the hub. In the 1980s, most airlines changed their operations from a linear point-to-point network to a hub-and-spoke network (USDOT RITA BTS 1996). References AXS-Alphaliner. 2009a. AXS-Alphaliner Newsletter, no. 2009/39. Available at http://www.alphaliner.com as of Oct. 2. 2009. AXS-Alphaliner. 2009b. Top 100 Container Carriers. Available at http://www.axs-alphaliner.com/topl00/index.php as of Sept. 28, 2009. Congressional Research Service. 2007. CRS Report for Congress. China's Trade with the United States and the World. Available at http://www.fas.org/sgp/crs/row/RL31403.pdf as of Oct. 2, 2009. 2009. Globalization and Freight Transport Costs in maritime Shipping and Aviation. International Transport Forum. Available at http://www.internationaltransportforum.org/2009/workshops/pdf/Hummels.pdf as of Oct. 2, 2009. International Air Transport Association (IATA). 2009a. Financial Forecast, March 2009. Available at http://www.iata.org/economics as of Sept. 25, 2009. International Air Transport Association (IATA). 2009b. World Air Transport Statistics, 53 Edition. Available online at http://www.iata.org as of Oct. 16, 2009. International Monetary Fund (IMF). 2009. Direction of Trade Statistics. Available at http://www.imfstatistics.org/dot/ as of Sept. 14, 2009. . 2008. News Release February 29, 2008. Maersk Line Announces Trans-Pacific Vessel Sharing Agreement with Mediterranean Shipping Company and CMA-CGM. Available at http://www.maerskline.com/link/?page=news&path=/archive/news20080229 as of Oct. 7, 2009. . 2009. News Release September 15, 2009. Maersk Line and CMA CGM enhance service between the East Coast of South America, Central America and the Caribbean. Available at http://www.maerskline.com/link/?page=news&path=/news/news20090915 as of Oct. 7, 2009. and . 2001. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business Online, Trends in Consumer Spending, 1959-2000. Available at http://www.bea.gov/scb/pdf/national/nipa/2001/0301pce.pdf as of Oct. 2, 2009. United Nations Conference on Trade and Development (UNCTAD). 2008. Review of Maritime Transport. Available at http://www.unctad.org/rmt as of Oct. 3, 2009. U.S. Department of Commerce (USDOC), Bureau of Economic Analysis (BEA) 2009. U.S. International Transactions Accounts Data. Available at http://www.bea.gov/international/bp_web/simple.cfm?anon=104324&table_id=22&area_id=3 as of Sept. 10, 2009. U.S. Department of Commerce (USDOC), U.S. Census Bureau (CB), Foreign Trade Division (FTD), 2009. Available at http://www.census.gov/foreign-trade as of May 12, 2009. U.S. Department of Transportation (USDOT), Federal Highway Administration (FHWA). 2007a. Economy: The Rapid Change in both Manufacturing and Service Sectors, Freight Analysis. Available at http://ops.fhwa.dot.gov/freight/theme_papers/final_thm2_v3.htm as of Oct. 2, 2009. U.S. Department of Transportation (USDOT), Federal Highway Administration (FHWA). 2007b. Business Logistics: From Push to Pull Logistics. Available athttp://ops.fhwa.dot.gov/freight/theme_papers/final_thm3_v3.htm as of Oct. 2, 2009. U.S. Department of Transportation (USDOT), Research and Innovative Technology Administration (RITA), Bureau of Transportation Statistics (BTS). 2009a. Pocket Guide to Transportation 2009. Table 1-1. Washington, DC. January. U.S. Department of Transportation (USDOT), Research and Innovative Technology Administration (RITA), Bureau of Transportation Statistics (BTS). 1996. Transportation Statistics Annual Report. Appendix A, page 242. Washington, DC. U.S. Department of Transportation (USDOT), Research and Innovative Technology Administration (RITA), Bureau of Transportation Statistics (BTS). 2008. Transportation Statistics Annual Report. Chapter 1. Washington, DC. U.S. Department of Transportation (USDOT), Research and Innovative Technology Administration (RITA), Bureau of Transportation Statistics (BTS). 2009b. America's Container Ports: Freight Hubs That Connect Our Nation to Global Markets. Washington, DC. June. ## Appendix C: Clean Cities Alternative Fuel Price Report October 2013 Welcome! Welcome to the October 2013 issue of the Clean Cities Alternative Fuel Price Report, a quarterly report designed to keep Clean Cities coalitions and other interested parties up to date on the prices of alternative and conventional fuels in the United States. This issue summarizes prices that were collected between October 4, 2013 and October 18, 2013 from Clean Cities Coordinators, fuel providers, and other Clean Cities stakeholders. Methodology In order to collect price information for both alternative and conventional fuels from areas across the country, Clean Cities coordinators, fuel providers, and other key stakeholders were requested to provide prices for fuels in their areas on a voluntary basis. Prices were collected on all major alternative fuels currently in widespread use (natural gas, propane, biodiesel, and ethanol), as well as prices for conventional fuels at stations that also sell alternative fuels (or stations nearby). Prices were collected from public and private refueling stations throughout the country between October 4, 2013 and October 18, 2013. Prices were then averaged to determine regional price trends by fuel and variability in fuel price within and among regions.1 Consistent with the fuel price reporting format the U.S. Energy Information Administration (EIA) uses, prices in this report are grouped by the Petroleum Administration for Defense Districts (PADD); the districts are illustrated in the map to the right. This report's prices represent retail, at-the-pump sales prices for each fuel, including federal and state motor fuel taxes. In some cases, prices were collected from government or utility refueling facilities and these taxes were not included in the prices reported to Clean Cities. In these instances, although these users are not required to pay these taxes, the appropriate federal and state taxes were added to the reported prices to provide a more representative basis for comparison. In some cases, states may charge a flat annual fee for state motor fuel taxes, especially for gaseous fuels like compressed natural gas (CNG) and liquefied petroleum gas (LPG or propane). These flat fees are not considered in the prices reported in these pages. Clean Cities Alternative Fuel Price Report October 2013 Summary of Current Report Information Table 1 shows overall nationwide average prices for conventional and alternative fuels.2 As this table illustrates, alternative fuel prices relative to conventional fuels vary, with some (B20, B99-B100) higher and some (CNG, E85 and propane) lower. On an energy-equivalent basis, CNG is about$1.36 less than gasoline. On a per-gallon basis, E85 is about 41 cents less than gasoline, and propane is about 49 cents less than gasoline. B20 prices are higher than regular diesel by about 11 cents, while B99/B100 blends have a cost of about 27 cents per gallon more than regular diesel.3

Table 1. Overall Average Fuel Prices

Relative to the last report from July 2013, the average prices for most of the liquid fuels have decreased by as much as 20 cents, while B20 increased by 13 cents. The gaseous fuel prices experienced a decrease of 5 cents for CNG and an increase of 23 cents for propane. It should be noted that the price changes occur as a result of a number of factors, including an actual change in price, a slightly differing sample of prices (both location and quantity), and seasonal variations of demand.

Prices in this report were collected and are reported in the units in which they are typically sold (dollars per gallon or dollars per gasoline gallon equivalent). Because these fuels have differing energy contents per gallon, the price paid per unit of energy content can differ somewhat from the price paid per gallon. Table 2 shows the fuel prices from Table 1 for the current reporting period normalized to a price per gasoline gallon equivalent (GGE), per diesel gallon equivalent (DGE), or per million British thermal units (BTUs) of energy. This calculation uses the nominal lower heating values in BTUs per gallon of fuel from the Oak Ridge National Laboratory's Transportation Energy Data Book.4 Prices for the alternative fuels in terms of price per gallon equivalent are generally higher than their price per gallon because of their lower energy content per gallon.5 However, consumer interest in alternative fuels generally increases when the alternative fuel price is less than the conventional fuel price and as the price differential per gallon increases, even if that differential does not directly translate to savings on an energy-equivalent basis.

Table 1. World's Leading Economies by Gross Domestic Product: 1995, 2000, and 2008 (Ranked by 2008 GDP)
Table 2. October 2013 Overall Average Fuel Prices on Energy-Equivalent Basis
Gasoline and Diesel Prices

Table 3 shows average prices for gasoline and diesel as collected by Clean Cities coordinators and other stakeholders (supplemented where necessary with other EIA reference sources for conventional fuels). These prices were collected from refueling stations selling both conventional fuels and alternative fuels, and from conventional refueling stations near alternative fuel stations. There were 516 price points collected for gasoline and 350 for diesel. The average price for gasoline ranged from a low of $3.11 per gallon in the Gulf Coast region to a high of$3.78 per gallon in the West Coast region. Diesel prices ranged from $3.78 per gallon in the Central Atlantic and Gulf Coast regions to$4.11 per gallon in the West Coast region. Because prices for conventional fuels were collected from stations and regions providing alternative fuel price information, data collection was not uniform across the regions of the country. However, the information is representative of refueling stations selling both alternative fuels and conventional fuels.

Table 3. Average Gasoline and Diesel Prices by Region from Clean Cities Sources

Table 4 shows average prices as provided by EIA on the petroleum information section of its website.6 These prices are averages of prices from a selection of 900 gasoline and 350 diesel retail fuel stations across the country. Note that EIA's average nationwide prices match relatively closely with the average prices reported by Clean Cities stakeholders. Prices differed by 10 cents or less for gasoline and 6 cents or less for diesel in each region on a per gallon basis, with the exceptions of New England, where EIA average prices for gasoline differed by 23 cents, and the Central Atlantic, where EIA average prices for diesel differed by 18 cents from the average prices reported by Clean Cities stakeholders. Comparisons in this document between conventional and alternative fuel prices will be made using prices collected from Clean Cities sources wherever possible, as these prices are most representative of stations selling both conventional and alternative fuels.

Table 4. EIA Gasoline and Diesel Price Averages
Gasoline Average Price from EIA, Week of 10/14/13Diesel Average Price from EIA, Week 10/14/13
New England$3.53$4.03
Central Atlantic$3.40$3.96
Lower Atlantic$3.26$3.84
Midwest$3.30$3.85
Gulf Coast$3.11$3.80
Rocky Mountain$3.46$3.89
West Coast$3.68$4.05
NATIONALAVERAGE$3.35$3.89
Compressed Natural Gas (Relative to Gasoline)

Table 5 shows average prices for compressed natural gas (CNG) for vehicle use, grouped by region, as well as regular gasoline prices, as provided by Clean Cities representatives. These prices were collected from across the country from Clean Cities coordinators, fuel providers, and other stakeholders on a voluntary basis.

Table 5. Compressed Natural Gas Average Prices by Region from Clean Cities Sources

As Table 5 illustrates, CNG has a lower average price than gasoline for all regions of the country, with the largest difference ($1.60 per GGE) being in the Rocky Mountain region. On average, CNG costs about$1.36 less than gasoline on a per gasoline gallon equivalent basis.

The map to the right illustrates price differentials by state for natural gas relative to gasoline, based on differentials between natural gas and gasoline prices for each state (as opposed to the regional averages illustrated in Table 5). In this map, negative numbers represent prices for CNG lower than gasoline. States not highlighted with a color did not have any CNG data points in the current report. As the map illustrates, CNG prices (per GGE) were favorable relative to gasoline in all states for which pricing data was reported, with the most favorable pricing found in states located in the Rocky Mountain, Midwest and West Coast regions.

Tech Note: Prices for CNG were provided by the individual stakeholders in gasoline gallon equivalents from the “price at the pump.” It should be noted that the internal conversion factor between the physical quantities of gas delivered and gasoline gallon equivalent was not collected from each of the refueling stations. Regional differences in gas heat content relative to the internal pump conversion factor may change the price per gasoline gallon equivalent, but this report did not determine these differences.

Compressed Natural Gas (Relative to Diesel)7

Table 6 shows average prices for compressed natural gas (CNG) for vehicle use, grouped by region, as well as conventional diesel fuel prices, as provided by Clean Cities representatives and supplemental sources. These prices were collected from across the country from Clean Cities coordinators, fuel providers, and other stakeholders on a voluntary basis. The CNG prices in Table 6 are based upon the same group of prices as for Table 5, but converted to a cost per diesel gallon equivalent basis instead of a cost per gasoline gallon equivalent, to compare directly with diesel prices.

Table 6. Compressed Natural Gas Average Prices by Region from Clean Cities Sources

As Table 6 illustrates, CNG has a lower average price than diesel for all regions of the country, with the largest difference ($1.86 per DGE) being in the Rocky Mountain region. On average, CNG costs about$1.58 less than diesel on a per diesel gallon equivalent basis.

Table 6. World's Top Merchandise Exporting Countries and Their Exports to the United States: 2008 (Millions of current U.S. $) The map to the right illustrates price differentials by state for CNG relative to diesel, based on differentials between CNG prices and diesel prices for each state (as opposed to the regional averages illustrated in Table 6). In this map, negative numbers represent prices for CNG lower than prices for diesel. States not highlighted with a color did not have any CNG data points in the current report. As with the comparison to gasoline, CNG prices relative to diesel were favorable for all states for which pricing data was reported, with the most favorable pricing found in states located in the Rocky Mountain, Midwest and West Coast regions. Ethanol (E85) Table 7 shows average prices for an 85% ethanol/15% gasoline (E85) fuel blend, grouped by region, as well as regular gasoline prices, as provided by Clean Cities representatives. These prices were collected from across the country from Clean Cities coordinators, fuel providers, and other stakeholders on a voluntary basis. Table 7. Ethanol (E85) Average Prices by Region from Clean Cities Sources As Table 7 illustrates, E85 has a lower average price per gallon than regular gasoline for each region, with the largest average differential (51 cents) being found in the West Coast region. On average, E85 is about 41 cents lower in price than regular gasoline on a per-gallon basis. The map to the right illustrates price differentials between E85 and regular gasoline by state, based on differentials between E85 and gasoline prices for each state (as opposed to the regional averages illustrated in Table 7). In this map, negative numbers represent prices for E85 lower than for gasoline, and positive numbers represent prices for E85 higher than gasoline, on a per-gallon basis. States not highlighted with a color did not have any E85 data points in the current report. As the map illustrates, the states with the most favorable E85 pricing were located in the Midwest region. Tech Note: Ethanol (E85) contains about 30% less energy (BTUs) per volume than gasoline. Flexible fuel vehicles (FFVs) operating on E85 do not experience a loss in operational performance, but may experience a 25–30% decrease in miles driven per gallon compared to operation on gasoline. The appendix at the end of this report provides conversion factors for calculating E85 prices on a GGE and DGE basis. For a side-by-side comparison of available flexible fuel and other alternatively fueled vehicles, visit http://www.fueleconomv.gov. Propane Table 8 shows average prices for propane for vehicle use grouped by region, as well as regular gasoline prices, as provided by Clean Cities representatives. These prices were collected from across the country from Clean Cities coordinators, fuel providers, and other stakeholders on a voluntary basis. Some stations charge a different price for propane used in vehicles versus other uses. Where provided, the vehicle price has been included in this report. Table 8. Propane Average Prices by Region from Clean Cities Sources As Table 8 illustrates, propane prices are lower than gasoline in all regions of the country on a per-gallon basis. Overall, propane was about 49 cents per gallon less than gasoline, with the largest average price differential of$.72 per gallon found in the West Coast region. Propane prices in this report are from both private fleet refueling stations and public refueling sites that can provide propane for vehicles and for other uses.

The map to the right illustrates price differentials between propane and regular gasoline on a per-gallon basis, based on differentials between propane and gasoline prices for each state (as opposed to the regional averages illustrated in Table 8). In this map, negative numbers represent prices for propane lower than gasoline, and positive numbers represent propane prices higher than gasoline. States not highlighted with a color did not have any propane data points in the current report. As the map illustrates, the most favorable prices were found in the Midwest and Central Atlantic regions, as well as some states in the New England and West Coast regions.

Tech Note: Propane contains about 25% less energy (BTUs) per volume than gasoline and about 35% less energy (BTUs) per volume than diesel. The appendix at the end of this report provides conversion factors for calculating propane prices on a GGE and DGE basis.

Biodiesel Blends: B20

Table 9 shows average prices for B20, a 20% biodiesel/80% diesel fuel blend, grouped by region, as well as regular diesel prices, as provided by Clean Cities representatives. These prices were collected from across the country from Clean Cities coordinators, fuel providers, and other stakeholders on a voluntary basis.

Table 9. Biodiesel (B20) Average Prices by Region from Clean Cities Sources

As Table 9 illustrates, prices for B20 are between 2 cents and 26 cents per gallon higher than conventional diesel fuel in six regions. This quarter's data shows one region, New England, with B20 prices less than diesel. On average in the U.S., biodiesel in a B20 blend costs about 11 cents more per gallon than conventional diesel fuel, based on current information.

Table 9. Leading World Maritime Ports by Cargo Weight: 2007 (Thousands of metric tons)

The map to the right illustrates price differentials between B20 and diesel on a per-gallon basis, based on differentials between B20 and diesel prices for each state (as opposed to the regional averages illustrated in Table 9). In this map, negative numbers represent prices for B20 lower than diesel, and positive numbers represent B20 prices higher than diesel. States not highlighted with a color did not have any B20 data points in the current report. B20 had favorable pricing (per gallon) in a number of states located around the country.

Tech Note: B20 contains only about 2% less energy (BTUs) per volume than diesel. The appendix at the end of this report provides conversion factors for calculating B20 prices on a GGE and DGE basis.

Biodiesel Blends: B99/B100

Table 10 shows average prices for high-level blends of biodiesel (99% or 100% biodiesel with diesel fuel), grouped by region, as well as regular diesel prices, as provided by Clean Cities representatives. These prices were collected from across the country from Clean Cities coordinators, fuel providers, and other stakeholders on a voluntary basis.

Table 10. Biodiesel (B99/B100) Average Prices by Region from Clean Cities Sources

The price of B99/B100 is higher than the price of diesel fuel on a per gallon basis in four of the regions for which data was collected, ranging from 29 cents higher in the West Coast region to 70 cents higher in the Central Atlantic and Rocky Mountain regions. In the New England and Gulf Coast regions, prices for B99/B100 were lower than conventional diesel, by 39 cents and 21 cents, respectively. In the Midwest, the average prices for B99/B100 and conventional diesel were the same. On average across the nation, the price of B99/B100 is about 27 cents per gallon higher than the price of regular diesel.

The map to the right illustrates price differentials between high-level biodiesel blends and regular diesel on a per-gallon basis, based on differentials between biodiesel and diesel prices for each state (as opposed to the regional averages illustrated in Table 10). In this map, negative numbers represent prices for these blends that are lower than diesel, and positive numbers represent prices for these blends that are higher than diesel. States not highlighted with a color did not have any high-level biodiesel blend data points in the current report. Where data was available for this report, prices for B99/B100 (per gallon) were most favorable in states located in the New England and Lower Atlantic regions.

Table 10. Top 20 World Container Ports by TEUs Handled: 2007 and 2008 (Thousands of loaded and unloaded TEUs)

Tech Note: B100 contains about 10% less energy (BTUs) per volume than diesel. The appendix at the end of this report provides conversion factors for calculating B100 prices on a GGE and DGE basis.

Comparison of Prices of This Report versus Last Report

Table 11, below, summarizes the average prices collected for this report by region, and compares them to prices collected in the Price Report from July, 2013. It should be noted that a portion of the price changes could be attributed to differing sample sizes and locations between the two reports.

Table 11. Comparison of Prices, Last Price Report versus Current Price Report

Comparison of Prices by Region for Public and Private Refueling Stations

Table 12, below, summarizes the comparison of fuel prices included in this report, separated into averages for privately-owned stations or stations available only to selected fleets (private refueling stations) and stations open to the public (public refueling stations). Private fleet fueling stations can typically negotiate prices lower than retail public stations, if they are willing to commit to purchasing large quantities of fuel over an extended period of time. However, private fleet pricing can sometimes be higher than retail public stations if there are unusual circumstances (remote locations, sites that use very small quantities of fuel, or special contracts where unique billing, accounting, or fleet service management fees are rolled into the price of the fuel).

Table 12. Comparison of Prices by Fuel Type, Region, and Station Type

As with the other prices in this report, all of these averages are prices with state and federal taxes included, using the protocols outlined at the beginning of this document.

Historical Alternative Fuel Prices from Previous Reports

The graphs on this page illustrate the historical prices for the alternative fuels included in these reports (specifically natural gas. propane, ethanol (E85), and biodiesel) relative to gasoline and diesel. These graphs include prices collected as part of the current Price Report activity, which began in September 2005. Natural gas (in GGE), propane, and ethanol (E85) have been graphed against gasoline prices, while natural gas (in DGE) and biodiesel have been graphed against diesel prices.

Illustration of Conversion Factors for Fuels

The standard lower heating values for fuels from the Transportation Energy Data Book 30 are listed below.

 Lower Heating Value Gasoline 115,400 BTU/gal Diesel 128,700 BTU/gal Compressed Natural Gas 960 BTU/cubic foot Ethanol 75,700 BTU/gal Propane 83,500 BTU/gal Biodiesel 117,093 BTU/gal

Conversion factors to establish prices in dollars per gasoline gallon equivalent (GGE) are illustrated below, and were developed using the lower heating values outlined above. The conversion factors are derived in the manner shown in the graphic to the right.

In the case of CNG, prices are provided to us in GGE, so no conversion is necessary (the representative heating value of CNG is provided above as a reference). To convert a price from dollars per gallon to dollars per GGE, multiply the price per gallon of the alternative fuel by the conversion factor.

 Conversion factor to GGE CNG 1.00 Ethanol (E85) 1.41 Propane 1.38 Biodiesel (B20) 0.91 Biodiesel (B100) 0.99

Conversion factors to establish prices in dollars per diesel gallon equivalent (DGE) are illustrated below, and were developed using the lower heating values outlined above. To convert a price from dollars per gallon to dollars per DGE, multiply the price per gallon of the alternative fuel by the conversion factor.

 Conversion factor to DGE CNG (in GGE) 1.12 Ethanol (E85) 1.58 Propane 1.54 Biodiesel (B20) 1.02 Biodiesel (B100) 1.10
Acknowledgements

The authors would like to acknowledge all of the contributors from the Clean Cities community who have provided prices for this report; we sincerely appreciate your continued dedication to the success of this report. The authors would also like to acknowledge the continued support of DOE for developing this report.

Would You Like to Participate?

If you would like to provide prices for alternative fuels in your region and be part of the data collection effort for this report, or if you have any questions, please contact:

U.S. DOE, Clean Cities

EE-3V

1000 Independence Avenue, SW

Washington, D.C. 20585

Phone: (202)586-6459

afpr@nwttech.com

DISCLAIMER

This document highlights work sponsored by agencies of the U.S. Government. Neither the U.S. Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the U.S. Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the U.S. Government or any agency thereof.

1 Fuel price averages for this report are determined by simply averaging the individual data points received. A comparison of average fuel prices for private and for public stations by region can be found on pages 13–14.

2 A very small sample (5 points) of hydrogen information was received: One of the five locations for which data was received reported hydrogen at zero cost for vehicle use, with an average price for the four other hydrogen stations of $2.77 per gasoline gallon equivalent. 3 ASTM specifications now include blends of up to 5% biodiesel as regular diesel fuel; therefore the separate listing for B2/B5 was discontinued as of October 2009. 4 A listing of the conversion factors used appears as an appendix at the end of this report. 5 For ethanol flexible-fuel vehicles (FFVs), the actual difference in fuel used per mile is somewhat less than would be calculated simply on the difference in energy content of the fuels, as some sources have noted that some FFVs can achieve better energy efficiency (miles per unit of energy) on E85 than on gasoline. This effect is not currently included in these calculations as the magnitude of the effect varies by specific FFV model. 7 A total of 19 liquefied natural gas (LNG) price points were collected with an average fuel price of$2.34 per gallon, or \$4.03 per DGE. Because of the small number of price points, this data is not reflected in the report.

## Photo Credits

VOLUME 1 ©Jim Brace-Thompson: 274; Centers for Disease Control and Prevention: 207 (Amanda Mills); ©Ryan Falconer and Danya Alexander: 319; Federal Emergency Management Agency: 299 (Gene Romano), 379 (Rosanna Arias); Flickr: 360; Library of Congress: 84, 185 (Carol M. Highsmith), 305 (Martin Stupich); National Aeronautics and Space Administration: 51, 60, 73; National Transportation Safety Board: 102; U.S. Army Corps of Engineers, Savannah District: 39; USDA Agricultural Research Service: 147 (Scott Bauer); USDA National Resources Conservation Service: 9 (Lynn Betts); U.S. Department of Energy Argonne National Laboratory: 198 (Wes Agresta), 268, 292, 437; U.S. Department of Homeland Security: 133; U.S. Marine Corps: 109, 443 (Michael lams); U.S. National Archives and Records Administration: 35 (Frank J. Aleksandrowicz); White House: 368 (Pete Souza); Wikimedia Commons: 2 (Tiia Monto), 14, 18 (Kris Arnold), 24, 27 (Eduard Marmet), 53 (Mario Roberto Duran Ortiz), 56 (Andy Mitchell), 65 (Maarten Visser), 69 (Jeff McNeill), 81 (Joi Ito), 98 (Superjet International), 117, 119, 124, 127, 141, 144 (Adrian Pingstone), 153 (Marco Schmidt), 163 (Ricky Courtney), 166, 172, 177 (Joe Ravi), 180, 187, 192 (Brady Holt), 213, 221 (General Motors/Susan G. McSpadden), 226 (Shuets Udono), 229 (Diego Delso), 237 (Rafael Kloepper), 243, 249 (Daniel Betts), 259 (Henrique Rubens Balta de Oliveira), 265 (M. O. Stevens), 271 (Adam Jones), 279 (Jorge Royan), 288, 313 (Honza Groh), 322, 328, 333, 337 (Adam Jones), 343 and 375 (Jim Henderson), 346 (Fred Hsu), 348, 351 (Frank Vincentz), 388; (John Phelan), 399 (Paul Krueger), 406 (Erik Daniel Drost), 413, 422, 429 (David Gubler), 434 (Chris Sampson), 445.