Changes in Freight Distribution and Movement in the U.S. Due to the Reshoring Trends

Over the several decades, China and other Asian countries became attractive to many multinational enterprises (MNEs) to bring their manufacturing facilities out of the U.S. for several reasons such as lower labor costs, proximity of natural resources, and new market development. However, the advantage of lower labor costs in China is rapidly decreasing, which will eventually negate the cost savings for the MNEs that relocate their manufacturing out of their home countries. Moreover, federal and state governments have announced tax benefits and policies encouraging MNEs to bring back, keep, or expand their manufacturing in the U.S. The economic activities, bringing back, keeping, or expanding manufacturing facilities in the U.S. are referred to as ‘Reshoring’. This research aims to analyze the impact of the reshoring phenomenon, and is divided into two parts: 1) an examination of locations of manufacturing plants where the offshored plants will likely be relocated, 2) to estimate the impact on the U.S. nationwide highway network after reshoring. The research framework is developed based on the traditional four-step travel demand modeling. In order to find the best facility locations and to estimate future freight origin-destination resulting from reshoring, this study develops a new application for the freight distribution applying three different methodologies: the standardized coefficient analysis, factor rating analysis, and facility location problem. The top 10 regions are selected to estimate freight origin-destination flow and the flow is assigned on the network. This study also compares freight and truck-miles traveled of before and after reshoring, and finds reshoring will reduce total ton-miles traveled, truck-miles traveled, and total number of truck trips.

• Supplemental Notes:
  • This paper was sponsored by TRB committee AT020 Standing Committee on International Trade and Transportation.
• Authors:
  • Kim, Jaehoon
• Conference:
  • Transportation Research Board 97th Annual Meeting
  • Location: Washington DC, United States
  • Date: 2018-1-7 to 2018-1-11
• Date: 2018

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 18p

Subject/Index Terms

• TRT Terms: Before and after studies; Forecasting; Freight traffic; Highways; Impacts; Industrial location; Multinational corporations; Origin and destination; Travel demand; Truck traffic; Vehicle miles of travel
• Uncontrolled Terms: Reshoring
• Geographic Terms: United States
• Subject Areas: Freight Transportation; Highways; Motor Carriers; Planning and Forecasting;

Filing Info

• Accession Number: 01661375
• Record Type: Publication
• Report/Paper Numbers: 18-03632
• Files: TRIS, TRB, ATRI
• Created Date: Feb 27 2018 9:44AM