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21st Century Operations Using 21st Century Technologies

Freight Performance Measure Primer

CHAPTER 6. BEST PRACTICES AND RECOMMENDED FREIGHT PERFORMANCE MEASURES

BEST PRACTICES: PRIVATE SECTOR

Billions of tons of freight worth trillions of dollars move in the United States every year. Trucks account for over 70 percent of the value of all domestic shipments, while rail dominates the long-distance freight market (shipments over 500 miles). Freight performance measures are a key ingredient to successfully, efficiently, and safely moving freight within, into, and out of the United States.

Performance measures can vary in meaning between the private sector and the public sector. The public sector is interested in measuring the effect of policy decisions, such as total shipments, commodity flows, and asset management. The public sector is also interested in measuring the success of regulations and standards.. These include environmental and safety measures, such as emissions of criteria pollutants, employee injuries, and fatalities.

The private sector interests are related but different. Providers are interested in economic measures, such as financial performance, equipment performance, loads, employees, and customer service. While the private sector is also concerned about fatalities and injuries, they also measure the effects of these incidents on insurance costs and liability.

There is a lack of uniformity across the main modes of freight transportation, and less agreement among modes as to the most critical performance measures. Although each mode of freight transportation has its own performance measurement needs, many of the measures across the modes emphasize the financial aspects. Despite the lack of uniformity or consensus of performance measures, several measures do tend to represent all modes of freight transport:

  • Average length of haul.
  • Operating expenses as a percent of revenue.
  • Revenue per ton-mile.
  • Tonnage (total, all loads).
  • Terminal dwell time or empty miles.

The trucking industry is interested in regulations that restrict operational flexibility, rising costs, the cost of satisfying regulations, congestion impacts, and improving safety. Trucking industry issues generally fall into the following subject areas:

  • Hours of service regulations.
  • Driver availability and shortages.
  • Fuel costs.
  • Highway congestion.
  • Toll costs.
  • Tort and other liability matters.
  • Environmental controls.
  • On-board technology.

The freight transport industry is dominated by Class I railroads, which comprise over 90 percent of freight rail revenue. Thus, the rail performance measures focus primarily on those Class I railroads. Rail freight performance measures typically consist of the following components:

  • Average length of haul.
  • Average tons per carload.
  • Average tons per train.
  • Carloads originated.
  • Containers transported.
  • Employees.
  • Freight cars in service.
  • Freight revenue.
  • Freight revenue per ton-mile.
  • Locomotives in service.
  • Net income.
  • Operating expense.
  • Operating ratio.
  • Operating revenue.
  • Railroad market share.
  • Return on average equity.
  • Ton-miles of freight.

BEST PRACTICES: PUBLIC SECTOR

Most State departments of transportation (DOTs) track general performance measures. There are few, however, that have a robust freight performance measurement system in place. Several States, including Florida, Maryland, Minnesota, Ohio, Oregon, and Washington, have well-established freight programs that offer lessons learned. This primer highlights a few of the States that have proactively developed their freight programs.

Maryland

The Maryland Department of Transportation (MDOT) has a long history of freight planning and freight performance measurement. MDOT, unlike transportation administrations in many other States, is the umbrella organization to other business units including the State Highway Administration, Maryland Transportation Authority, Maryland Port Administration, Maryland Aviation Administration, Maryland Transit Administration, and the Motor Vehicle Administration. While each business unit under the MDOT umbrella is a key component to MDOT's freight planning efforts, it is the Office of Freight and Multimodalism that is the lynch pin that holds these efforts together.

In 2009, MDOT published the Maryland Statewide Freight Plan. This Plan included a comprehensive review of the current and future freight system in Maryland and outlined policies and projects necessary to ensure the safe and efficient movement of freight in, out, within, and through Maryland. The Plan concluded that freight is expected to grow in the region by 100 percent by 2035 and identified 138 freight-related projects to address future freight demand, including 95 highway projects, 26 rail projects, and 17 port projects with a value of over $35 billion. Many of these projects have begun construction, and more are in the planning and design phases.

In 2014, the Office of Freight and Multimodalism developed the Strategic Goods Movement Plan, a guiding document for planning and programming. This five-year plan is an update to the 2009 Statewide Freight Plan. However, unlike the Statewide Freight Plan that focused on projects, the Strategic Goods Movement Plan emphasizes policy positions and strategic planning based on qualitative and quantitative analysis. This Plan analyzed trends and long-range projections and was developed with support from multiple stakeholders, including the Freight Stakeholder Advisory Committee, which assisted in identifying issues and outcomes to improve the safety and efficiency of freight transportation. The Freight Stakeholder Advisory Committee consisted of freight stakeholders from the private sector, the Federal Highway Administration (FHWA), the Federal Railroad Administration (FRA), and the public sector.

Ohio

The Ohio Department of Transportation (ODOT) initiated a statewide freight study in 2013 to understand how Ohio's freight infrastructure is being utilized. The two purposes of the study were to 1) plan and prioritize future strategic investments in Ohio's freight infrastructure, and 2) guide future economic development activities to make the most efficient use of the existing freight infrastructure. The results of the freight study will help inform and guide the State transportation plan (Parsons Brinckerhoff 2013).

The ODOT studied the freight system challenges that policy makers should be aware of and be prepared to address. The study concluded that truck productivity is down primarily due to driver shortages and changes in Federal regulations. It also noted that, although the interstate system is the trunk line for shippers and carriers, the U.S. and State routes provide much of the access to major customers.

The study also included several observations: manufacturing is making a comeback in the United States; air cargo, while still essential to business, has changed and no longer requires major hub operations; and Federal investment in locks and dams is inadequate on the inland waterway system.

The study evaluated several strategies that would not only benefit Ohio, but would be beneficial for many States and Metropolitan Planning Organizations (MPOs). Some of the strategies include:

  • Develop driver training programs for potential truck drivers.
  • Replace diesel fuel with natural gas to reduce fuel costs.
  • Public and private air cargo owners should investigate niche markets to convert facilities from freight hubs to logistics centers based on trucking distribution.
  • Investigate use of longer combination vehicles.
  • Evaluate cost-benefit of improving local rail lines for 286,000-pound railcar capacity so short line users continue to receive cost-effective rail service.

Oregon

In 2005, the Oregon Department of Transportation (ODOT) established a statewide traffic mobility program. This program has been extremely successful with coordination efforts, forecasting conflicts, and resolving freight related issues. ODOT has developed a close partnership with the trucking industry, holding regular meetings to discuss policy issues. Within Oregon, the Oregon Transportation Commission (OTC) makes decisions about investments on the highways and, to a lesser extent, for other freight-moving modes. The OTC uses several broad criteria for making investment decisions, which vary by funding program. For example, projects that support freight mobility was one of the prioritization factors established for the 2008–2011 Statewide Transportation Improvement Program (McMullen et al. 2010). Because of this legislation, the OTC was directed to consider factors such as transportation cost reduction, multi-modal connections, system efficiency, project costs, and economic benefits in selecting projects.

Washington

The Washington State Department of Transportation (WSDOT) worked with three State Freight Plan technical teams (urban goods movement, rural economies, and the State's global gateways) to identify and prioritize WSDOT's truck freight performance goals. WSDOT coordinated with over 60 freight stakeholders to serve on these teams, including carriers, local governments, ports, air quality experts, laborers, and academic experts. These stakeholders helped determine performance goals that align with both State and Federal policies and are most important to shippers, carriers, and residents of Washington. These goals will track the performance of the State's truck freight economic corridors.

WSDOT worked with MPOs, the technical teams, and its regional transportation planning organization to develop the truck performance measures and to develop criteria used to define State truck, rail, and waterway freight economic corridors. These criteria will be used to evaluate State truck freight economic corridors, such as slow speeds, resiliency, bottlenecks, truck collisions, and locations with poor state of freight repair.

I-95 Corridor Coalition

I-95 spans 1,917 miles along the eastern seaboard and carries an average of over 10,000 trucks per day, with peak daily truck traffic of over 31,000. I-95 carries approximately 35 percent of the Nation's vehicle miles traveled and carries over 5.3 billion tons of freight each year.

The I-95 Corridor Coalition (I-95 CC) was formed in the early 1990s as a partnership of transportation agencies, toll authorities, public safety, and related organizations spanning the entire east coast from Maine to Florida. The purpose of the I-95CC is to provide a forum for decision-makers to address transportation and operations issues. The I-95CC focuses its efforts on the long-distance movement of freight, passengers, and travel that stretches through multiple jurisdictions and often across multiple modes.

The I-95 CC understands that with the volumes of traffic and the amount of freight being moved along I-95, multi-modal and multi-State performance measures are essential to promoting a safer and more efficient movement of goods and people. In 2016, the Coalition, in conjunction with FHWA, completed a study that evaluated the development of freight performance measures across multi-State supply chains. The study produced a framework for measuring performance, data and measurement techniques, identification of short-term solutions for defining critical trade lanes, and longer-term solutions for improved data and multi-modal approaches.

U.S. Department of Transportation, Federal Highway Administration

The FHWA is leading efforts in the United States to implement a Freight Fluidity System of performance measures and analysis. The Freight Fluidity System (USDOT 2015) spans across the freight modes and incorporates multi-modal freight movement data on key freight corridors and infrastructure to reveal congestion points and trends. This information has been used to identify where operational investments are most needed to improve the system and can help to realize economic and environmental improvement opportunities. State and local DOTs and MPOs can apply this tool both broadly at the total system level and specifically on congestion points.

RECOMMENDATIONS FOR A COMPREHENSIVE FREIGHT PERFORMANCE MEASUREMENT PROGRAM

Many options can be considered when investigating the development of performance measures. Statewide, system-wide, corridor-wide, or individual routes are just a few of the possibilities. The development of a Freight Advisory Committee (FAC) is recommended. Freight advisory groups can play a key role in selecting the most appropriate freight performance measures. These committees can be made up of any number of public and private freight stakeholders. A FAC should consist of stakeholders from State DOTs, motor truck associations, railroads, ports, air freight, economic development organizations, freight shippers and receivers, logistics companies, agricultural industry, and other relevant freight stakeholders as deemed necessary.

The Oregon DOT "Freight Performance Measures: Approach Analysis" report researched each State DOT's long-range plans. Table 7 shows the most-cited goals and the number of States reporting those goals.


Table 7. Stated goals for transportation policy.
Major Policy Goal # States Citing as a Goal
Safety42
Environmental Stewardship / Quality of Life 32
Protection / Maintenance of Transportation Investment 29
Mobility of People and/or Goods (Only 11 Cited Freight Specifically) 28
Accessibility 21
System Efficiency 18
Promotion of Interconnectedness / Multi-Modal Systems 16
Security 15
Economic Vitality 15
Economic Development 13
Revenue Enhancement 12
Congestion Management 8

The aim of most DOTs and MPOs is to increase infrastructure efficiency through focused investments. Therefore, measures need to be developed that predict the impact of investment on transportation flows through the entire State and to project potential modal shifts. This, however, will likely require performance measures for multiple modes. To better evaluate the performance of the freight transportation system, data relating each of the major policy goals for freight by mode is required. Obtaining this data is a first step in developing metrics that are useful to decision-makers for policy analysis.

Most safety-related freight performance measures include the number of accidents or fatalities from incidents involving freight vehicles on a segment of roadway. Safety measures would quantify the amount of loss and damage because of the accident or fatality, or the total cost of freight loss and damage from crashes divided by the total freight vehicle miles traveled. This measure could also be considered as a system performance measure.

Table 8 below presents performance measures that States and MPOs could include in their freight planning efforts. Some of these performance measures will be identified by FHWA as the proposed rule making process is finalized. Other measures were derived from a research of States and MPOs currently measuring freight performance.

Table 8. Recommended performance measures.
Category Measure Observed Estimated Data Available1
SAFETY
Highway Motor carrier crash rate X No Value a
Motor carrier truck at-fault rate X No Value a
Number of heavy truck-related fatalities X No Value a
Capacity of weigh stations (number of trucks processed per hour) X No Value a
National highway system pavement conditions X No Value b
National highway bridge conditions X No Value b
National highway system intermodal connector condition X No Value c
Total cost of freight loss and damage from accidents/Vehicle Miles Traveled (VMT) No Value X b
Railway Total loss and damage from accidents per route-mile X No Value a
Total loss and damage from accidents per ton moved No Value X a
Number of at-grade railroad crossings along freight significant corridors such as freeways and interregional corridors X No Value a
Number of rail fatalities X No Value a
Train derailments per ton moved No Value X b
Water Value of cargo lost or damaged per ton or value of cargo moved No Value X d
Containers damaged or lost per containers handled/total containers No Value X d
Air Total loss and damage from accidents divided by value of freight No Value X d
Percent of study airports meeting Traffic Safety Administration (TSA) guidelines for general aviation security X No Value a
Incidents per 1,000 operations at freight-significant airports X No Value a
MAINTENANCE AND PRESERVATION
Highway Percent of pavement in good condition on freight significant highways X No Value b
Number of weight restricted bridges divided by total number of bridges X No Value a
Percent of bridges that meet good and poor structural condition thresholds X No Value a
Service life remaining on highway pavement No Value X b
Benefit of truck weight enforcement on pavement service life No Value X c
Railway Miles of track in expected or Federal Railroad Administration (FRA) Class I divided by total miles of Class I track X No Value a
Number of double-stack tunnel restrictions divided by number of tunnels X No Value a
Water Percent of tons on river moving though locks with constraints X No Value b
Unscheduled lock closure time (hours) No Value No Value No Value
Channel depths at the port divided by depths at competitive ports X No Value b
Air Percent of pavement in fair or poor condition at freight-significant airports X No Value a
MOBILITY, RELIABILITY, AND CONGESTION
Highway Percent of interstate providing reliable travel times X No Value a
Percent of interstate where peak hour travel times meet expectations* X No Value a
Percent of non-interstate National Highway System (NHS) providing reliable travel times* X No Value b
Percent of non-interstate NHS where peak hour travel times meet expectations* X No Value b
Annual hours of excessive delay per capita* X X b
Urban: Average hours of delay per day for freight vehicles on freight-significant links X X b
Urban: Travel Time Index (TTI) on freight-significant links (ratio of the peak travel time to free-flow travel time) No Value X b
Percent of interstate mileage providing for reliable truck travel times* X No Value a
Percent of interstate mileage that is uncongested* X X a
Clearance time for incidents, crashes, or hazardous materials X No Value b
Number of intersections and ramps with inadequate turning radii for large trailers on freight significant corridors X X c
Urban: Buffer Index on freight-significant links (ratio of the 95th percentile travel time to average travel time or free flow travel time) X X b
Rural: Average hours of delay per day for freight vehicles on freight-significant links X X b
Number of truck rest areas and their capacities X No Value a
Rural: Average travel time on freight-significant links X No Value c
Railway Tons or ton-miles of freight over relevant period No Value X b
Average terminal dwell time train-hours of delay X No Value c
Percent of rail track-miles with 286,000-pound railcar capacity rating X No Value a
Railroad corridor level of service X No Value c
Water Tons of traffic arriving at a port X No Value a
Twenty-Foot Equivalent Units (TEUs) passing through port (port throughput) X No Value a
Gate reliability or truck turn time X No Value b
Ship unload rate (time per container) X No Value d
Ship load rate (time per container) X No Value d
Average delay per barge tow on river X No Value a
Air Flight frequency by airlines with cargo capacity (number per day) X No Value b
Average time between flights by airlines with cargo capacity (minutes) X No Value b
Percent of on-time departures at freight significant airports X No Value a
Percent of on-time arrivals at freight significant airports X No Value a
ACCESSIBILITY AND CONNECTIVITY
Highway Triple trailer VMT as a percent of total freight VMT X X a
Percent of major generators with appropriate roadway access to interregional corridors and major highways X No Value a
Percent of shippers with access to triple network No Value X c
Railway Class I: Ratio of unit train carloads (or tons) divided by total carloads (or tons) No Value X d
Percent of shippers within 50 miles of intermodal trailer-on-freight-car (TOFC) facility No Value X b
Percent of major freight generators with appropriate rail access X No Value a
Number or capacity of intermodal facilities X No Value a
Water Shippers within 50 miles of river port (for barge accessibility) No Value X d
Availability of container-handling capability and/or bulk transfer capability X No Value b
Air Flight frequency by airlines with cargo capacity (number per day) X No Value b
Average time between flights by airlines with cargo capacity (minutes) X No Value b
Average travel time delay for trucks on airport access roads X No Value b
Number of docks or acres of cargo-handling facilities X No Value a
ENVIRONMENTAL
All Total tons of emissions reduced from Congestion Mitigation and Air Quality Improvement Program (CMAQ) projects for applicable criteria pollutants and precursors No Value X d
All Pounds of greenhouse gas emissions No Value X d
All Increase in energy consumed or costs related to energy consumption No Value X d
All Increase in air pollution impacts/costs No Value X d

1 a) Data available. No manipulation needed.
No Value b) Data available. Manipulation or analysis needed.
No Value c) Data could be generated from simulation or model.
No Value d) Data not readily available. [Return to Note 1]

 

* Performance measures to be determined in MAP-21 proposed rulemaking
No Value Source: Minnesota Department of Transportation, Measurement sources
No Value for freight performance measures and indicators, Oregon Department of
No Value Transportation, Freight Performance Measures: Approach Analysis.
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