Traffic congestion related delays is the biggest pain point in the logistics and freight industry. In this infographic we look at the cause and effect that lead to congestion on roads and possible strategies to overcome traffic congestion.

1. In a day, trucks moving freight
constitute of 5% to 10% of all
vehicles on the road in
metropolitan regions of the U.S.
Shortage of trucks
due to spikes of
demand
Glitches in
warehouse leading to
delay in loading /
unloading
Shortage of chassis,
customs slowdown,
loading or unloading
delays at ports.
Labor strikes or
general lockdowns
in industries
Heavy traffic in
holiday season
Rough weather
Road accidents
IMPACT OF
TRAFFIC
CONGESTION IN
LOGISTICS
Congestion-related delays are a
major pain point in the logistics
and freight industry.
The American Transportation Research
Institute estimates the cost of congestion
at $63.4 billion.
Total cost of congestion on U.S.
local roads was estimated at $50.7
billion in 2015, a 54.5% increase
over 2014.
Other road networks in the U.S. caused a further 797 million
hours of delay to the trucking industry in 2015 (above and
beyond the NHS congestion calculation of 996 million).
At a micro level, logistics giant United
Parcel Service (UPS) suffers an additional
$105 million in operating costs every year
for just five minutes delay per vehicle, per
day.
Adds operational costs
Makes predictions and estimates go awry
Delays delivery of goods which causes customer dissatisfaction
Adds to CAPEX costs (providers invest in more vehicles
to serve more customers)
Affects Just in Time business models which depend on
prompt supply of goods
Have an efficient
route planning to
take the most
congestion free
route
Near-shoring as a
sourcing strategy,
to reduce time
spend in logistics
01
Monitor inventory
while in motion in
airplanes and
trucks
Developing systems that
streamline logistics
process, increasing
frequency of shipping,
decreasing lead times,
and ensuring quick
response
06
02
Lower inventory
levels with
centralized
warehousing
Market and Fleet Size Logistics provider
invests in more trucks
and other assets to
account for slower
turnaround times
Business and Delivery
Schedules
Kinks in supply chain
management due to
issues such as shortage
of trucks and drivers
Intermodal
Connections
Delays in connectivity,
and hold ups due to
inefficient handling at
connection points
Business Inventory and
Operations
Management
Delayed delivery of
goods forces businesses
to keep more inventory,
subverting lean
management principles
and JIT
Worker Travel
Business Relocation
Workers caught in
congestion face low
productivity and
absenteeism.
Businesses may tend to
avoid routes prone to
congestion
03
05
Cross-docking: goods
arriving on one
loading dock by
truck, quickly sorted,
and directed, within
hours, to another
dock
04
Point of Congestion Impact How Congestion Influences
https://www.freightwaves.com/news/true-costs-of-congestion
http://www.globeconfreight.com/blog/6-current-causes-of-port-congestion/
http://transweb.sjsu.edu/MTIportal/research/publications/documents/freight/Freight.htm
https://www.ciltinternational.org/wp-content/uploads/2015/07/Publication-in-Journal-of-De
veloping-Country-Studies.pdf
http://atri-online.org/wp-content/uploads/2017/05/ATRI-Cost-of-Congestion-05-2017.pdf
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Negative Effects of Congestion