Review of the Impact of the US Economy on Transportation and Logistics Management

1.0 Abstract 

Transportation of freight cargo and human has been a significant contributor to the economy of the US with the recognized modes being pipeline, maritime, air, rail, and road. Logistics management has gone a long way in making transport managers improve the efficiency and profitability of their companies ( Kovács and Kot, 2016) . Thus, the triumph of businesses relies on transportation as it ensures that raw materials are acquired, processed and delivered to the consumers as finished goods. Therefore, it is essential that the entire infrastructure be an inefficient condition to allow for the attainment of smooth and timely transportation all through the supply chain. This paper focuses on the effects of the US economy on logistics management and transportation. In this study, the research methodology involved the use of interviews and questionnaires to collect data ( Dwarakish and Salim, 2015) . The results indicate inefficiencies such as organized crime in the maritime transportation that lead to loss of revenue by the government. The paper has raised several solutions that when implemented would go a long way in to curbing the inefficiencies, for instance, lessening government’s participation in certain transportation projects. However, several adverse effects are linked with developments in transportation that are not covered in this paper. Some cannot be monetized because of their natural significances, thus, an appeal for comprehensive research to be done on the subject. 

2.0 Introduction 

The favorite mode of transportation within the US is the roads which are often used for short distance travels. Railroads, ships or boats, and air transport are used all the same but are mostly preferred for long-distance transportation, as they are extremely appropriate in the transportation of either goods or human ( Gao, Tang, and Li, 2018) . However, air transport is mainly used in the transportation of perishables or as a premium service due to its efficiency in the transportation of large cargo over long distances and within brief time durations. On the other hand, railways have been used perfectly well in the transportation of freight cargo that is considered more massive than that conveyed by air, but that has destinations that are inland. While pipelines have conveniently been used in the delivery of cargo that is in liquid form, even though, it is a one-way means of transportation. The liquid can also be transmitted through globally using ships and inland by long distance trucks. The long distance trailers and semi-trailers do not transport the liquid cargo only but also less bulky cargo which might be more expensive when carried through the railroad. 

The success of large and small businesses relies heavily on transportation as it performs an essential role of ensuring that the raw materials are not only acquired but also processed and consequently delivered to the customers as finished goods. From the taxes that the government levies the small and large businesses, there is a direct association, brought about by the enterprises, between the logistics management and the US economy ( Kovács and Kot, 2016) . Additionally, in every last quarter of the year, the economy is dictated upon by the transport industry when the market settings are highly manipulated by the varying requirements of transportation by the different sectors in the manufacturing domain (Centobelli, Cerchione, & Esposito, 2017). Since the last quarter of each year is filled with so many festivities, the number of people shopping rises and thus led to an increased demand for manufactured goods. This demand, in turn, leads to the inflated transportation requirements as finished goods and raw materials have to be transported to meet specific deadlines. 

There are so many commercial enterprises within the United States that are faced with increasing demands in the form of hardships and pressures to maintain level productivity sufficient enough to sustain profitability. The management of the said businesses is, therefore, challenged with crafting and continuously improving procedures that will ensure their corporations retain a competitive advantage and continues to generate satisfactory returns to sustain the smooth running of their operations. Therefore, to ensure that the business entities attain the competitive advantage and the desired profitability, the organizations and companies have resorted to integrate a digital approach to all their supply chain functions ( Alonso, Clifton, & Díaz-Fuentes, 2015 ). “What is the impact of the US economy on transportation and logistics management?” This study strives to come up with appropriate answers to such a question. The answers to the question will be beneficial in finding out the efficiency of the application of various strategies in settling the inefficiencies of the transport system which has led to the loss of billions of taxpayer’s money. 

2.1 Definitions of Terminologies Used: 

Supply chain: the chain of processes of all the technology, individuals, activities, resources, and organizations that encompass the sale and designing of a product or package from the distribution of raw material to the deliverance of the finished merchandise to the consumer. 

Freight cargo: are produce or goods that are conveyed for economic gains by means of train, ship, truck, or plane. 

Distribution: the manner in which a product or service is shared out among the retailers, wholesalers, and consumers. 

Just-in-time-manufacturing: is a system of inventory where the management strategizes on aligning the acquisition of raw materials with the schedules of production to raise efficiency. 

Logistics management: is an aspect of management in the supply chain that aims at meeting consumer satisfaction through implementation, control, and planning of the competent storage and movement of related services, goods, and information to the destination from the origin. 

Economic deliberations: the action of thoughtful consideration about or conferring an economic subject than making a decision prudently. 

Cost effective: Refers to an economic enterprise being more productive in comparison to its cost. 

Competitive advantage: it is the comparative proficiencies with which an economic entity can manufacture merchandise or package. 

Maritime: terminology used to explain aspects that are concerning the ships and the sea. 

Overcapacity: a situation where there are excess ships compared to their demand. 

3.0 Literature Review 

3.1 Transportation and Logistics Management 

The success of enterprises that sell finished products is to a high degree dictated by transportation and logistics management. As logistics management involves the controlling of transportation and the costs involved making the two extremely compatible. But, in the majority of businesses or organizations, the two together make a very long sequence of different tasks and responsibilities ( Lei, Yu, Chen, & O'Connell, 2016) . When the two are efficiently managed, raw materials are moved from the supplier to the industries and finished goods from the industries to the consumer. While transportation focuses on the movement of goods from one point to the other with the ultimate destination being the consumer, logistics management is all about getting the goods to the consumer in the perfect condition, price, timely, and in the correct quantity. 

Logistics management oversees not only the transportation of the goods but also its storage, operations, and production of the goods, and the management of the inventory. It also covers the aspects of packaging the finished products and subsequent shipping them to wholesalers, retailers, and the consumer taking into consideration both the external and the internal distribution channels ( Lei et al., 2016) . The secret to the success of transportation and logistics management is in finding the correct balance between costs and competency. An example of a company that has excelled in the management of logistics and transportation is Amazon. The company has an expenditure budget that runs into billions of dollars in the development of high-tech distribution centers. Even though it already has numerous centers all around the United States, the developments it makes are to enable its products to reach the consumer at a concise time but cost-effectively. 

The best way for a company to remain profitable is by reducing the costs of transportation by eliminating unwarranted transportation overheads. The overheads can be minimized by finding suppliers that are located closer to the business, purchasing products that are partially assembled, consolidating shipments, and shipping in raw materials in the least number of trips ( Knaap, & Oosterhaven, 2017) . Further cost reductions can be achieved through having several work stations within the proximity of the factory diminishes transportation of materials, which according to experts refer to it as the non-value-added costs of labor. Through the consolidation of the transport service providers, the company stands to increase the volume from each provider and consequent gain the advantage of negotiating a discounted volume. 

The concept of “just in time manufacturing” reduces the logistic costs directly as efficiency is increased, and wastage minimized since goods are received when they are required in the production process. This method decreases the costs of inventory and calls for an accurate forecast of demand from producers. An example of this strategy in use is an automobile manufacturer who operates the business with a low level of inventory. The manufacturer expects the supplier to make deliveries of the car parts only when an order for a car is placed ( Lei et al., 2016) . With this strategy, the manufacturer cuts on the costs of storage and when an order is not fulfilled or is canceled then the manufacturer is not left with an unnecessary inventory. 

The disadvantage of consolidating shipments is the increase in the risk factor especially when a shipment is displaced or lost where the entire just-in-time manufacturing process grinds to a halt. Similarly, an unexpected shortage can bring production to a standstill ( Lei et al., 2016) . Therefore, the manufacturer needs suppliers who are dependable and reliable with the capacity to make rapid and quick deliveries with negligible delays. Thus, it is imperative that the manufacturer constructs distribution centers and production plants extremely close to their primary suppliers ( Knaap, & Oosterhaven, 2017) . The close proximity of the supplier ensures that the delays from a massive traffic jam or the shutdown of air traffic as the parts can be walked over. Otherwise, the suppliers will be forced to have a contingency of alternative strategies as backup plans such as the availability of a reserve car to replace the overnight delivery truck that is not able to leave on time. 

3.2 Logistics Management and the United States’ Economy 

Management of logistics cannot be understated as it is a complex process that comprises various procedures. These processes vary beginning with the identification of a competent and proficient merchant who has the capacity to provide suitable transport to distinguishing the finest substitute channels for transport, or possibly choosing a cost-effective method of delivery (Chandra, Ghosh, & Srivastava, 2016). Logistics managers might opt for the use of technological resources and software to manage critical processes since erroneous decisions made could be the reason for a series of issues related to the management of logistics. 

Take a case scenario where a supplier delays in the conveyance of goods to a grocery store or fails to deliver the goods entirely. Whatever the justification for the delay or failure to deliver the clients would definitely be disgruntled. The delay or failure could be attributed to reasons beyond the supplier’s control such as inadequate transport infrastructure which could also contribute to the destruction of suppliers. Similarly, hopeless transportation amenities could also lead to delay as a result of traffic jams (Chandra, Ghosh, & Srivastava, 2016). However, logistics management, transportation, and the economy are intertwined as mediocre preparation could intuitively amplify transport costs which could, in turn, be reflected in the of production costs and thus, translate to an inflated economy. 

It is evident that the logistic system is the resultant of an economy that is established between the boundary of the economy and logistics management. The proficiency of the aforementioned periphery could be the contributing factor to a faster mode of transferring finished products and services in both the local and world markets ( Calatayud et al., 2016) . Hence, the significance of the competitive advantage will be advanced; air transport, the roads, railroad, ocean, and ventures in massive transport capabilities will be experienced. Eventually, there would be a realization of the results of choices that are significantly conservative like transport plan and storing. 

In 2016, the United States capital stock for transportation was estimated to have a net value of USD$ 7.7 trillion. In the year following, both the state government and the regional endorsed for 99% of the investments in the transport sector, even though the lion’s share in the financing was attributed to the federal government (Chandra, Ghosh, & Srivastava, 2016). Thus, the net value of the capital stock from the railways was estimated at USD $ 340 billion. Subsequently, the pipeline accounted for USD$ 0.17 trillion while that of the highways was estimated as USD$ 0.57 trillion for cars and USD$ 2.8 for the massive commercial trucks. 

3.3 Forms of Logistics Management 

Supply Chain Management 

This concept of logistics s based on handling the procedures for productivity. When the management of the supply chain is effective, it could easily lead to the promotion of the sector with the purpose of satisfying the demand of new environment of the business ( van Buren, Demmers, van der Heijden, & Witlox, 2016) . The supply chain management is a continuous philosophy of the management that keeps evolving with the aim of unifying the shared productive efficiencies and business function resources located within and outside the enterprise’ aligned business associates found along the crisscross of the supply networks into an exceedingly consumer-enhancing system of supply meant to develop creative results and harmonizing the movement of services, products, and knowledge to design exclusive, customized resources for consumer appeal. 

Reverse Logistics 

This concept has been used mainly to promote the recycling of resources and customer service. In regard to the control of quality, products that defective but finished are returned to their manufacturers through a reverse system of logistics. For increasing the industry’s competitive advantage, reverse logistics has been developed rapidly to elevate consumer service intensity further ( Lan & Zhong, 2018) . Moreover, it has been developed to promote environmental sustainability through the recycling of material that is reusable. Subsequently, the increasing demand for reverse logistics creates a new market for logistic industries that are a third party. 

Maritime Logistics 

Maritime offers a high carrying capacity and cheap mode of transportation for consumers and thus, plays a critical role in global freight. Within the transportation sector, maritime is essential in the conveyance of goods such as grains and crude oil, even though it takes a longer time to reach the destination and heavy weather can be a great impediment. Logistic managers have opted for cooperative operation strategies and use of large scale ships to enhance competitiveness and save costs ( Lan & Zhong, 2018) . Moreover, clients have a higher affinity to quality service compared to the cost of delivery and hence, a wakeup call for the creation of new logistic concepts in favor of client satisfaction. 

Air Freight Logistics 

Planes offer quick delivery services that carry lower risks of the goods being damaged, high flexibility, security, a good frequency for normal destinations, and accessibility. The only disadvantage associated with air transport is the charges for the services are extremely high. This mode of transportation is mostly sought by those that are after high-speed delivery or have goods with a high value per unit weight of the shipment ( Lan & Zhong, 2018) . From the trends of the world markets, it is evident that aviation freight logistics need to upgrade their services. The service providers should consider the integration of the service with other modes of transportation to achieve the" “door to door “and “just in time delivery service mode. 

Land Logistics 

The significance of land as a means of transportation, lies mainly in the connection with maritime and aviation in the provision of an extension of their delivery services. Land transportation includes pipeline, road, and railway freight transport. Pipelines are associated with high capacity of conveyance, cheaper operation fees, less impacted by weather conditions, and the continued transfer of the goods ( Lan & Zhong, 2018) . But it is disadvantageous as it is difficult to supervise, infrastructure is costly and ferries only specialized goods. Road transport, on the contrary, provides high accessibility, cheaper capital, availability, and mobility. The disadvantages include lower speeds, reduced capacity, and safety issues. However, the railway provides reduced energy consumption, lower deterrence by the weather, and higher carrying capacity while its cons comprise of costly and hard maintenance, expensive facilities, and low flexibility on schedules. 

Express Delivery 

The delivery of services has highly changed as the demand for decentralization of production and accuracy of time, the requirements for reduction in costs of stocks which has brought about the concept of “just in time Delivery.” The concept has led to an increased frequency in the delivery of materials at the correct destination and time within the production process ( Lan & Zhong, 2018) . The express delivery is accountable at traceability, swift at the door to door delivery, just in time, efficient, and advancement of different demands on delivery. There is room for the development of the express delivery sector especially if they integrate 24-hour stores which could provide customers with the option of selecting particular stations for pick-up. Thus, efficiency would be improved as there would be an increased frequency at delivering towards the stores instead of individual houses. 

E-Commerce 

The future trends for commercial type's lies in e-commerce which has many gains for consumers and companies equally. For starters, e-commerce employs technology rather than paperwork and thus is more competitive and efficient. It expands the market from local to international and also has the potential of reducing the number of warehouses and the cost of the stock ( Lan & Zhong, 2018) . Hence, it provides room for price reductions. E-commerce increases the number of trips but on the same note, reduces the average burden of individualized trips but is projected to impact on road transport as the number of trips will increase. The biggest disadvantage in e-commerce is the threat of increased security flaws. 

City Logistics 

This is a principle that focuses on integrating available resources to resolve snags instigated by the effects of the escalating populace and car possessions in the urban areas. Many states and cities have been impacted by the reduced efficiency of transport, congestion of traffic, and subsequent decline in business competitiveness ( Lan & Zhong, 2018) . Hence, this conditioning reduces the quality of life in urban areas and the development of the cities/states in the future. Thus, city logistics offers a chance for creative answers to be developed for the advancement of the quality of life n the urban areas ( Clements & Kockelman, 2017) . The concept involves such top-notch techniques such as Global Positioning System, logistics knowledge, Geographic Information System, modeling, and Intelligent Transport System, to improve the environment within the city. Additionally, it assists in the reduction of negative environmental impacts and the reduction of the costs of transportation. 

3.4 Transportation and the United States’ Economy 

The bustle of the United States’ economy is dependent to a large extent on the proficiency of its system of transport. Federal government’s economy is impacted upon tremendously by transportation with particular concern on developmental projects that advance the attainment of development goals. The developmental goals may vary from the establishment of employment opportunities, commercial activity, investment, excise duty earnings, productivity, and the total worth of landed property ( Alonso, Clifton, and Díaz-Fuentes, 2015) . Therefore, it is evident that projects that are biased towards the lessening of costs of transportation and increase the intensities of convenience have a likelihood of strengthening the economic output and overall development ( Gurnak, Khomenko, & Volynets, 2018 ). A classic example is the construction of a new highway that links two areas that have been inaccessible. The highway will not only strengthen the convenience of accessing the two areas within a shorter time period but also increase the mobility for the inhabitants of the connected places. 

Bridge connecting two areas 

The building of the public road certainly determines the number of business interactions and thus enhances the trade within connected areas. Moreover, several products and services that were previously unavailable will be availed and at a reduced cost to some of the most remote areas. Conclusively, the construction of such a highway will definitely lead to the expansion of the market base for the business and companies that avail the reduced cost goods and services ( Calatayud et al., 2016) . Transport has a lot of direct pros that are economically related, but also indirect economic benefits cannot be underestimated such as expanding productivity, creation of more employment opportunities and intensifying the accessibility of education. 

For the global economy managed to be in a situation that gives a concise depiction of its expansion and development economically, it is prudent to recognize the need for major features that can be treated as significant indicators of the economy. The firmness of the national and local economies is to a great extent influenced by the competitiveness of companies and further enriched by the modification and change of economic deliberations that are as a consequence of management of logistics (Chandra, Ghosh, & Srivastava, 2016). Currently, there is a predetermination of logistics management by the management of several trades in all facets of the supply chain. Hence, the management's decisions are extremely critical as they determine the development and growth of the trades they are in ( Chandra, Ghosh, and Srivastava, 2016) . Thus, the management of logistics accounts for set value standards within the trade and takes into consideration the tastes of the customer. Furthermore, logistics management accelerates strategic implementation and planning. 

3.5 Shipping as a Transportation Means 

The shipping sector in the United States is faced with what many economic pundits might refer to as macro-economic condition. A majority of the shipping lines are clearly operating under tough times as they are grappling to survive the economic hardships. The other transport sectors have indicated signs of recovery from the previous economic turbulence ( Álvarez-SanJaime, Cantos-Sánchez, Moner-Colonques, & Sempere-Monerris, 2015) . Economic experts fore state that not only in the US but worldwide shipping challenges that will lead to a few more years in the decline of the industry due to overcapacity. Additionally, the challenges have been compounded by the progression of other maritime rules and regulations concerning the protection and safety of the marine ecosystem. 

Many economists predict the overcapacity of ships as a situation where the maritime industry will continue to expect the reduced shipment that will, in turn, lead to a decrease in taxation. As a majority of the shipping companies are striving to overcome challenges of negative cash flow, others have thought it wise to go for mergers. Thus, the shipping industry is witnessing a consolidation of new trends where smaller businesses which have heavy asset investments, are partnering with large businesses solely for the purpose of survival through the economic turmoil ( Álvarez-SanJaime et al., 2015) . But the associations are not likely to resolve the impediment for the vast majority as seafarers continue to suffer from the imposition of harsh penalties and corrective fees for deeds that have nothing to do with the crime. In the maritime industry, measures to control the carbon emission have necessitated the crafting of costly alterations in the deployment of machinery on board and the installation of detectors. 

The costs of transporting cargo by use of maritime vessels or better referred to as freight cargo is affected by a number of factors. These factors include the bargaining power of the transporter, the availability of substitute transport kinds, the number of competitors, and the fluctuations of the demand and supply. However, logistic managers are faced with numerous challenges in the maritime industry such as increasing fuel prices, piracy, and labor shortages. High prices of fuel directly impact on the cost of transportation as fuel costs are known to account for more than 60% of the operating costs of the ships ( Álvarez-SanJaime et al., 2015) . Piracy, on the other hand, has increased the costs of transportation too as the logistic managers have to factor in private security for the ships and its crew. Furthermore, there are specific areas in the maritime sector where labor shortages have a tremendous impact, and these include seafarers, maritime lawyers, and surveyors. The shortage of seafarers has led to an increased cost of labor and consequently an increase in the ship’s operating costs. 

3.6 Railway as a Means of Transportation 

Railways as a means of transportation are exceptionally dependable compared to other means of transportation as they are safer and more reliable. Unlike other modes of transport, the weather has no serious repercussions in the ferrying of goods by train in relation to other modes of transport, and they are fast. Moreover, the means of transport is more coordinated with schedules in place and static routes ( Donaldson, & Hornbeck, 2016) . In 2014, railways contributed to the creation of an estimated 1.5 million jobs while economists approximate USD$ 274 billion of the annual income to have been generated by this means of transportation. From the revenues generated, nearly USD$ 33 billion was collected as tax incomes while USD$ 88 billion was paid in wages. 

The railroad serves a diverse number of industries, and hence its contribution to the economy is magnanimous. From the construction and selling of the real estate and automotive, enabling producers to contact new markets or fuelling commerce, businesses in America depend upon the railroad for the acquisition of raw materials to the marketing of products within the US and beyond. Due to the magnitude of railroad projects, most of the financing is from the government as the infrastructure is expensive. Since the taxpayers' money is used in these projects, they have to be justified ( Donaldson, & Hornbeck, 2016) . Therefore, the government will before launching the initiative, make sure that the number of passengers using public means is increased and also evaluate the negative and positive economic implications the project would impart. 

3.6 Significance of Air Transport 

This transport industry has a remarkable impact on the US economy either directly or indirectly. Similar to the other transport industries, air transport provides employment opportunities in such capacities as handling of baggage, air traffic control, aircraft maintenance, and many others. Apart from the direct-linked job opportunities, there are several hundreds of indirect opportunities associated with air transport ( Litman, 2017) . Moreover, the transport service has several economic benefits that include boosting productivity by unlocking global markets and consequently exposing companies to the great competition. Thus, the companies are provoked into improving the products, marketing strategies, and general operational activities. 

This form of transportation encourages effective partnering and networking between companies located at different economic zones worldwide. It thus stimulates creativity as good transport infrastructure to encourage more budgets allocation on research activities especially those that aim at expanding the market. The transportation system is known to decrease the time of delivery of products and thus, improves the proficiency of the supply chain and reducing costs considerably ( Alonso, Clifton, & Díaz-Fuentes, 2015) . Moreover, it is the backbone of the tourism industry as it facilitates access to distant or isolated destinations such as islands. Tourism, in turn, creates more job opportunities especially in the hospitality industry and also is an excellent source of revenue through tourist-related taxes among many other economic benefits. 

Air transport is a very good link between businesses, cultures, and people within various cities, states, and countries. Hence, in order to fully optimize on the benefits of aviation, it’s critical that the relevant stakeholders within the industry and partners collaborate and encourage the sustainable development of the industry by linking more places and more people with an increased frequency ( Litman, 2017) . Additionally, aviation is a critical driver to e-commerce and worldwide trade, permitting globalization of manufacture. Furthermore, there are numerous advantages associated with aviation, and that makes it a sought after mode of transportation in comparison with others especially in terms of reliability and speed. Thus, due to its speed, it has contributed to "today" and "tomorrow" delivery services and enhanced the timely transportation of essential and perishable goods. 

Aviation has been a key to fostering globalization as major companies have established foreign affiliates and transnational operations that have led to the homogenization of local markets, greater import penetration, and international brands. Moreover, it has led to the specialization of cities, states, and even countries that focus on commercial activities that give more comparative advantage and business with countries, cities, or states that are focused production of different types of services and goods ( Van der Heijden et al., 2016) . Taxes are another of the economic benefits derived from the aviation sector as value added tax, passenger duties, immigration taxes and other unnamed are obtained by different authorities through the industry. This taxation makes the air transport industry the only means of transportation that contributes the taxes and user charges. 

4.0 Results 

4.1 Inefficiencies of Transportation in the US 

As much as the United States is a major global economy, the nation experiences a lot of what can be termed as inefficiencies related to its transport infrastructure and the system in general. The statement is based on the responses from interviews done on a randomized sample that disregarded the gender and age of the respondents. The results from the interviews indicated the existence of inefficiencies in the transport industry within the US. In the course of the research, the interviewees pointed at some of the most observable inadequacies at everyone's disposal. Some of the inadequacies referred to comprise the disintegration of roads and bridges even as maintenance of the same infrastructure is ongoing through the building of the motorways (Donaldson, 2018 ) . The interviewees further indicated that recurrent demands to interrupt public transport or the normalcy of service providers hiking the fares at their convenience are more of the signs of the inadequacies. The idleness of the planes in their flight strip and the presenting of the metro zone with dense traffic at rush-hour have also been described as a symbol of the ineffectiveness of transportation. 

4.2 Politicians as Inefficiency to Transportation 

Politicians taking advantage of critical transport constancies is such a poignant encounter as operators are compelled to practically comply with policies that have been politicized and are mediocre to the set industry standards. The mediocre policies are an economic burden as they are associated with several impediments such as an increase in costs of production, botched pricing, delays, time limitations, suboptimal investments, and undeserving money to clients, and discrepancies in financial accounts ( Johnson, 2017) . Moreover, the transportation costs are pushed higher by the ever-escalating prices of fuel brought about by the inflation indexes that are continually peaking. To add to it, the management of big companies grapples with the setback of discrepancies of transportation regulations and rules within cities, states, and countries ( Centobelli, Cerchione, and Esposito, 2017) . These contradicting transport regulations and rules have varying needs for different industries and hence, pose a challenge in the logistics management as some of them end up raising the overall cost of production. 

4.3 Inefficiencies in the Maritime 

The costs associated with transportation have increased significantly in becoming a stumbling block to trade. In maritime, transport costs are highly determined by essential aspects like containerization, distance, seaport efficiency, and most critical, the volume exported. According to Dwarakish and Salim (2015), the level of seaport efficiency is not measured by the infrastructure only, but also consideration is taken to the level of extreme regulatory requirements and the presence of organized crime. Due to vulnerability in marine ports, organized crime has been cited as the force behind numerous trafficking of counterfeit goods, inbound precursor chemicals, and illegal drugs. Corruption at marine ports has led to the increase in the use of fraudulent documents, large-scale importation of contraband such as cigarettes, and export of drugs that are manufactured domestically, to name but a few. 

4.4 Inefficiencies in Aviation 

In the aviation industry, inefficiencies are witnessed not only in the idleness of planes in their runways but also in the excessive use of paperwork in the processing of freight cargo. The physical documentation processes is a big hitch to the efficiency of the operation of forwarders and carriers as the value cannot be obtained from most of the data collected, and thus, the business continues to experience hiked costs of transportation ( Yang, Lan, & Wang, 2019) . The inflated costs of transportation are associated with lengthy freight wait time and increased processing cost. Furthermore, the companies that transport air cargo are less efficient due to the failure to use data analytics to reach new markets because data is collected in the paperwork but is not analyzed. 

4.5 Economic Impact of the Inefficiencies 

The shortfalls have further been fragmented to describe the financial impact they transform on the nation. Centobelli, Cerchione, and Esposito, (2017) estimate the costs associated with traffic jam at rush-hour by vehicles at USD$ 45 billion . These estimated costs are associated with traffic jam in highways in comparison to the roads being free for drivers for convenient transportation. Additionally, the scientists remark that approximately USD$ 13 billion is attributed to ineffectual bankrolling of the primary road while the government fails in the redistribution of the funds to areas that are of utmost urgency. Through their research, the three researchers reveal that the impairment of the highways is extremely inefficient motoring costs USD$ 64 billion and USD$ 87.3 billion for the repairs and upkeep costs of cars and trucks respectively ( Donaldson, 2018) . Centobelli, Cerchione, and Esposito, (2017) continue to point out that the costs of tear and wear of the trucks are estimated at USD$ 12.5 billion and USD$ 10.8 billion for the cars. The trio additionally refers to the inadequacies linked to air transport as taking off and landing delays approximated at USD$ 0.016 trillion, protocols of the economy at USD$ 7.4 billion, and inferior management of sizes. 

5.0 Discussion 

5.1 Deregulation as a Solution to Political Inefficiency 

From the pinpointed inadequacies a number of solutions have been proposed to propel transportation and logistics management forward and successively, the national economy. Lessening the government’s participation in certain transportation projects that it oversees and empowering companies and private organizations to run them is one way of dealing with the inefficiencies from government officers (Kilian, 2016). Majority of the challenges are brought about by government officials’ delay in making decisions, making the wrong choices or being biased by corrupt motives. This deregulation and expansionist policy could go a long way into combating government’s direct involvement ( Kovács and Kot, 2016) . Hence, with the participation of the private companies who happen to be the biggest stakeholders in the industry, the development of the transportation sector will be transformed rapidly. 

5.2 Congestion Pricing Policy 

The endorsement of the congestion pricing policy would assist in reducing traffic congestion on highways notably at the peak of rush hour. The policy has proven to be successful in Sweden where the system is used in decongesting highways at the height of traffic jam and thus, could be duplicated to protect the taxpayers’ wealth from loss. The money saved could then be converted to other sectors that are more demanding like the education and health sector ( Dumitru, 2017) . The congestion pricing model involves the introduction of additional levies or charges through proper legislation to reduce the number of vehicles on the roads at peak traffic hours. The charges or levies are imposed on road users and meant to motivate the users to abandon their private vehicles and use buses, metro, and railways during the times when the roads are expected to have a jam. 

From this policy, the government is expected to save the money that is lost during the traffic and increase revenue through the taxes collected from those who would prefer to use their transportation at those times. Some of the discounted costs and gains linked to the policy include time saved in travel USD 1.9 billion, reliability of travel time USD 662 million, reduced emissions of GHG USD 89 million, improvement of air quality USD 19 million, and less traffic accidents USD 24 million. Capital costs have also been approximated at USD 357 million, subsidy in transit USD 1 billion, and costs of operation USD 802 million. 

5.3 Technology as a Tool to End Transportation Inefficiencies 

Dependable and Reliable information regarding current and future demands are essential for the management of logistics. The managers will be able to reduce unwarranted transportation costs and thus, promote the growth of their institutions and drive their organizations to profitability ( Gao, Tang, and Li, 2018) . Additionally, the managers will be able to avoid trivial errors through the proper decisions made. Equally important, the experts at logistics in the aviation industry can benefit more from the use of technology which will not only make the clearance of cargo easier but also faster ( Dwarakish and Salim, 2015) . Likewise in maritime transport, the use of technology can assist in overcoming criminal activities. Startups and small businesses can integrate the services of third-party agencies to reduce the costs of transportation significantly. Similarly, the use of audit software will ensure efficiency in getting audit solutions that are enhanced and assist in the attainment of varying conformity with transportation regulations. 

5.4 Research Gaps 

S everal adverse effects are linked with developments in transportation that are not covered in this paper. Some of these cannot be monetized as they have more intrinsic values, hence, a call for detailed research on the subject. Some of these gaps revolve around numerous negative effects that are linked with transport developments particularly in the social and environmental standpoints ( Van der Heijden, and Witlox, 2016) . An example is, the construction of a highway could be a cause to the displacement of wild animals as forests are cleared for the development of the transport infrastructure. Other gaps comprise of the reduction of conveyance of passengers and quantity of freight cargo due to inflated costs of transportation. 

6.0 Conclusion 

The success of enterprises that sell finished products is to a high degree dictated by transportation and logistics management. Hence, when the two are efficiently managed, raw materials are moved from the supplier to the industries and finished goods from the industries to the consumer. This efficiency makes the bustle of the US economy dependent on the proficiency of its system of transport ( Kovács and Kot, 2016) . But, the US transport industry is faced with inefficiencies such as the disintegration of roads and bridges, recurrent demands to interrupt public transport or the normalcy of service providers hiking the fares. The idleness of the planes in their flight strip and the presenting of the metro zone with dense traffic at rush-hour have also been described as a symbol of the ineffectiveness of transportation. 

Vulnerability in US marine ports has led organized crime to thrive in the trafficking of counterfeit goods, inbound precursor chemicals, and illegal drugs. Corruption at marine ports has led to an increase in the use of fraudulent documents, large-scale importation of contraband such as cigarettes, and export of drugs that are manufactured domestically. Hence, it has become a big challenge to the growth of the national economy ( Gao, Tang, and Li, 2018) . In the aviation industry, inefficiencies are also witnessed in the excessive use of paperwork in the processing of freight cargo that leads to lengthy freight wait time and increased processing cost. The deregulation and expansionist policy could go a long way into eliminating the government's direct involvement in transport projects leading to increased competency. 

The endorsement of the congestion pricing policy would assist in reducing traffic congestion and increase tax collections. Some of the discounted costs and gains linked to the policy include time saved in travel USD 1.9 billion, reliability of travel time USD 662 million, reduced emissions of GHG USD 89 million, improvement of air quality USD 19 million, and less traffic accidents USD 24 million. Otherwise, adoption relevant technological advancements will assist in ensuring that the criminal activities that experienced in the ports are thwarted. Moreover, the technological advancements will go a long way in eliminating paperwork from the aviation industry increasing its efficiency of operations ( Dwarakish and Salim, 2015) . Small businesses can thrive in a number of ways through adoption of technology such as conforming to different transportation rules and regulations. 

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