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Freight Transportation Resilience in Response to Supply Chain Disruptions (2019)

Chapter: Part 1: Improving Freight Transportation Resilience in Response to Supply Chain Disruptions

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Suggested Citation:"Part 1: Improving Freight Transportation Resilience in Response to Supply Chain Disruptions." National Academies of Sciences, Engineering, and Medicine. 2019. Freight Transportation Resilience in Response to Supply Chain Disruptions. Washington, DC: The National Academies Press. doi: 10.17226/25463.
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Suggested Citation:"Part 1: Improving Freight Transportation Resilience in Response to Supply Chain Disruptions." National Academies of Sciences, Engineering, and Medicine. 2019. Freight Transportation Resilience in Response to Supply Chain Disruptions. Washington, DC: The National Academies Press. doi: 10.17226/25463.
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Suggested Citation:"Part 1: Improving Freight Transportation Resilience in Response to Supply Chain Disruptions." National Academies of Sciences, Engineering, and Medicine. 2019. Freight Transportation Resilience in Response to Supply Chain Disruptions. Washington, DC: The National Academies Press. doi: 10.17226/25463.
×
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Suggested Citation:"Part 1: Improving Freight Transportation Resilience in Response to Supply Chain Disruptions." National Academies of Sciences, Engineering, and Medicine. 2019. Freight Transportation Resilience in Response to Supply Chain Disruptions. Washington, DC: The National Academies Press. doi: 10.17226/25463.
×
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Suggested Citation:"Part 1: Improving Freight Transportation Resilience in Response to Supply Chain Disruptions." National Academies of Sciences, Engineering, and Medicine. 2019. Freight Transportation Resilience in Response to Supply Chain Disruptions. Washington, DC: The National Academies Press. doi: 10.17226/25463.
×
Page 7
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Suggested Citation:"Part 1: Improving Freight Transportation Resilience in Response to Supply Chain Disruptions." National Academies of Sciences, Engineering, and Medicine. 2019. Freight Transportation Resilience in Response to Supply Chain Disruptions. Washington, DC: The National Academies Press. doi: 10.17226/25463.
×
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Suggested Citation:"Part 1: Improving Freight Transportation Resilience in Response to Supply Chain Disruptions." National Academies of Sciences, Engineering, and Medicine. 2019. Freight Transportation Resilience in Response to Supply Chain Disruptions. Washington, DC: The National Academies Press. doi: 10.17226/25463.
×
Page 9
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Suggested Citation:"Part 1: Improving Freight Transportation Resilience in Response to Supply Chain Disruptions." National Academies of Sciences, Engineering, and Medicine. 2019. Freight Transportation Resilience in Response to Supply Chain Disruptions. Washington, DC: The National Academies Press. doi: 10.17226/25463.
×
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Part 1 Improving Freight Transportation Resilience in Response to Supply Chain Disruptions 3

4 ACKNOWLEDGMENTS The following individuals contributed to the research as members of an Expert Working Group:  Erik Stromberg, Executive Director, Center for Advances in Port Management, Lamar University  Anne Strauss-Weider, Freight Planning Director, North Jersey Transportation Planning Authority  Rick Calhoun, Retired, 41 years in the grain and transportation industries, most recently served as President of Cargo Carriers  Katherine Touzinsky, Research Physical Scientist, ERDC Coastal and Hydraulics Laboratory, USACE Headquarters  Caroline Mays, Director, Freight and International Trade Section, Texas Department of Transportation

5 CONTENTS SUMMARY .................................................................................................................................................. 11  CHAPTER 1: RESEARCH MOTIVATION AND APPROACH ................................................................... 17  1.1 INTRODUCTION ........................................................................................................................................................... 17  1.2 PROJECT PURPOSE ...................................................................................................................................................... 18  1.3 RESEARCH APPROACH AND METHODOLOGY ..................................................................................................................... 18  CHAPTER 2: SYSTEM PERFORMANCE AND SUPPLY CHAIN RESILIENCY: REVIEW OF THE LITERATURE ............................................................................................................................................. 21  2.1 INTRODUCTION ........................................................................................................................................................... 21  2.2  DISRUPTION TYPES AND CHARACTERISTICS ..................................................................................................................... 21  2.2.1 Lead Time ............................................................................................................................................. 22  2.2.2 Geographic Scope ................................................................................................................................. 24  2.2.3 Disruption Impact – Level of Loss ......................................................................................................... 25  2.3 MILITARY SURGES ....................................................................................................................................................... 26  2.4 DISRUPTION CLASSIFICATION ......................................................................................................................................... 27  2.5 SYSTEM RESILIENCY FACTORS ........................................................................................................................................ 29  2.6 POTENTIAL MITIGATION STRATEGIES .............................................................................................................................. 30  2.6.1 Commercial Operations ........................................................................................................................ 30  2.6.2 Military Operations .............................................................................................................................. 35  2.7 CONCLUSIONS ............................................................................................................................................................ 37  CHAPTER 3: SYSTEM RESILIENCY SCENARIOS AND CASE STUDIES ............................................. 39  3.1 SUPPLY CHAIN SELECTION METHODOLOGY AND CRITERIA ................................................................................................... 39  3.2 OVERVIEW OF CANDIDATE SUPPLY CHAIN FLOW SCENARIOS ............................................................................................... 41  CHAPTER 4: SYNTHESIS OF RESULTS OF CASE STUDIES AND INTERVIEWS ............................... 43  4.1 OVERVIEW OF FINDINGS ............................................................................................................................................... 43  4.1.1 Location ................................................................................................................................................ 44  4.1.2 Disruption Type ..................................................................................................................................... 44  4.1.3 Commodity ........................................................................................................................................... 45  4.1.4 Transportation Mode/Asset ................................................................................................................. 46  4.2 PRIORITIZING STRATEGIES ............................................................................................................................................. 47  4.2.1 Pre‐disruption ....................................................................................................................................... 47  4.2.2 During a disruption ............................................................................................................................... 48  4.2.3 Post disruption ...................................................................................................................................... 49  4.3 INFORMATION STRATEGIES ........................................................................................................................................... 49  4.3.1 Internal Communication ....................................................................................................................... 50  4.3.2 External Communication ...................................................................................................................... 50  4.4 LOGISTICAL STRATEGIES ............................................................................................................................................... 51  4.5 INSTITUTIONAL STRATEGIES ........................................................................................................................................... 54  4.6 PHYSICAL STRATEGIES .................................................................................................................................................. 55  4.7 REGULATORY FACTORS ................................................................................................................................................ 56  4.7.1 Jones Act ............................................................................................................................................... 56  4.7.2 Stafford Act........................................................................................................................................... 56  4.8 BARRIERS TO QUICK RECOVERY ..................................................................................................................................... 57  4.8.1 Organizational Culture ......................................................................................................................... 57  4.8.2 Collaboration ........................................................................................................................................ 57  4.8.3 Resources .............................................................................................................................................. 58  4.9 CONCLUSION ............................................................................................................................................................. 59  CHAPTER 5: ANALYSIS TOOLS AND MODELS FOR SUPPLY CHAIN RESILIENCE ......................... 61  5.1 INTRODUCTION ........................................................................................................................................................... 61 

6 5.2 TRADITIONAL TRIP BASED FREIGHT PLANNING MODELS ..................................................................................................... 62  5.3 BEHAVIORALLY BASED, SUPPLY CHAIN MODELING OF NETWORK DISRUPTIONS ....................................................................... 63  5.4 CASE STUDY: THE PHARMACEUTICAL SUPPLY CHAIN FROM FLORIDA TO TEXAS ....................................................................... 65  5.4.1 About FreightSim and the Florida Statewide Model............................................................................. 65  5.4.2 Base Case .............................................................................................................................................. 67  5.4.3 Disruption Case ..................................................................................................................................... 68  5.4.4 Results of the Analysis .......................................................................................................................... 69  5.5 EVALUATING FREIGHT FLUIDITY ..................................................................................................................................... 71  5.5.1 Freight Fluidity Measures ..................................................................................................................... 72  5.5.2 Freight Fluidity Case Study ................................................................................................................... 73  5.6 CONCLUSION ............................................................................................................................................................. 74  CHAPTER 6: GUIDANCE FOR STAKEHOLDER MITIGATION AND ADAPTATION OF SUPPLY CHAINS TO DISRUPTION ......................................................................................................................... 75  CHAPTER 7: IMPLEMENTING THE RESULTS OF THIS RESEARCH ................................................... 78  CHAPTER 8: FUTURE RESEARCH .......................................................................................................... 80  CHAPTER 9: CONCLUSION ..................................................................................................................... 84  BIBLIOGRAPHY ......................................................................................................................................... 86  APPENDIX A: INLAND WATERWAY/LOCKS SCENARIO 5 ................................................................... 94  APPENDIX B: RESPONDING TO SURGE IN FREIGHT TRAFFIC CAUSED BY MILITARY DEPLOYMENTS ....................................................................................................................................... 105  APPENDIX C: CASE STUDY OF GRAIN SUPPLY CHAIN FROM ILLINOIS TO NEW ORLEANS ...... 115 

7 Figures and Tables Figure 1: Research Approach ...................................................................................................................................... 19  Figure 2: Disruption Classification Framework ............................................................................................................. 28  Figure 3: Chosen Commodity Corridors ....................................................................................................................... 42  Figure 4: Origin-Destination Pair for Pharmaceutical Supply Chain Scenario .............................................................. 66  Figure 5: Resilient Supply Chain Assessment Process ............................................................................................... 76  Table 1: Commodities Identified for Analysis by Value ................................................................................................ 39  Table 2: Commodities Identified for Analysis by Quantity ............................................................................................ 40  Table 3: Total Pharmaceutical Tonnage and Value between Miami and Houston Origin-Destination Pair, Base Case (2007) ........................................................................................................................................................................... 67  Table 4: Pharmaceutical Tonnage and Value from Miami to Houston, Base Case (2007) .......................................... 67  Table 5: Total Pharmaceutical Tonnage and Value between Miami and Houston Origin-Destination Pair, with Disruption (2007) ......................................................................................................................................................... 69  Table 6: Pharmaceutical Tonnage and Value from Miami to Houston, with Disruption (2007) .................................... 69  Table 7: Pharmaceutical Tonnage and Value between Miami and Houston, Base Case and Disruption Scenarios, Both Directions (2007) ................................................................................................................................................. 70  Table 8: Pharmaceutical Tonnage and Value between Miami and Houston, Base Case and Disruption Scenarios, One-Way (2007) .......................................................................................................................................................... 70  Table 9: FAF Mode Descriptions for Pharmaceutical Disruption Scenario ................................................................... 71  Table 10: Soybean Export Supply Chain Performance, Agriculture Case Study ......................................................... 74 

8 List of Acronyms 3PL Third Party Logistics AAAE American Association of Airport Executives AAPA American Association of Port Authorities AAR Association of American Railroads AASHTO American Association of State Highway and Transportation Officials AFFW Airfreight Forwarder AIT Automated Identification Technologies APO Airport Operator ATRI American Transportation Research Institute BCO Beneficial Cargo Owner BO Barge Operator CBP Coast Guard and Border Protection CFS Commodity Flow Survey CGA Customs/Government Agency CMAP Chicago Metropolitan Agency for Planning CONUS Continental U.S. CRP Cooperative Research Program DHS Department of Homeland Security DLA Defense Logistics Agency DMC Defense Movement Coordinator DOD Department of Defense DOT Department of Transportation ECPC Emergency Communications Preparedness Center EOC Emergency Operations Centers EWG Expert Working Group FAA Federal Aviation Administration FAF Freight Analysis Framework FAF3 FAF Version 3 FARS Fatality Analysis Reporting System FAST Fix America's Surface Transportation FEMA Federal Emergency Management Agency Fix America's Surface Transportation FEMA Federal Emergency Management Agency FHWA Federal Highway Administration FLSWM Florida Statewide Model FORSCOM U.S. Army Forces Command FRA Federal Railroad Administration FTA Federal Transit Administration GAO Government Accountability Office HND Highways for National Defense HRTPO Hampton Roads Transportation Planning Organization ICT Information and Communicative Technology IGC Integrated Data Environment/Global Transportation Network Convergence

9 ILWU International Longshoremen and Warehouse Union IMC Intermodal Marketing Company INT Integrator I-O Input-Output IRRIS Intelligent Road/Railroad Information Server ITIC-ST Intermodal Transportation and Inventory Costing Model State Tool ITV In-Transit Visibility JIT Just-In-Time LEPCs Local Emergency Planning Committees LMS Logistics Management System LMSR Large Medium-Speed Roll-On/Roll-Off Ships LNG Liquefied Natural Gas MACOM Major Army Command MARAD U.S. Maritime Administration MC Motor Carrier MPOs Metropolitan Planning Organizations MSC Military Sealift Command MTO Marine Terminal Operator n.e.c Not Elsewhere Classified NAIS Nationwide Automatic Information System NCFRP National Cooperative Freight Research Program NCHRP National Cooperative Highway Research Report NHS National Highway System NIAC National Infrastructure Advisory Council NOAA National Oceanic and Atmospheric Administration NPMRDS National Performance Management Research Data Set NPRN National Port Readiness Network OD Origin-Destination OIF Operation Iraqi Freedom PMA Pacific Maritime Association PND Ports for National Defense PPE Personal Protective Equipment PPO Port Planning Order PPPs Public Private Partnerships PSA Port Support Activity RDD Required Delivery Date RFID Radio Frequency Identification RND Railroads for National Defense RO/RO Roll-On/Roll-Off RRF Ready Reserve Force SCGE Spatial Computable General Equilibrium SCTG Standard Classification of Transported Goods SCTG2 2-digit Standard Classification of Transported Goods SDDC Military Surface Deployment and Distribution Command SPM Single Port Manager

10 SPOE Seaport of Embarkation SSDCTEA SSDC Transportation and Engineering Agency STRACNET Strategic Rail Corridor Network STRAHNET Strategic Highways Network TBN Transportation Battalion TC-AIMS II Automated Information for Movements System II TRB Transportation and Research Board TSA Transportation Security Administration TTI Texas Transportation Institute TTTR Truck Travel Time Reliability TWIC Transportation Worker Identification Credential UK United Kingdom UMR-IWW Upper Mississippi River - Illinois Waterway URCS Uniform Railroad Costing System USACE U.S. Army Corp of Engineers USCG U.S. Coast Guard USDA U.S. Department of Agriculture USDOT U.S. Department of Transportation

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Freight Transportation Resilience in Response to Supply Chain Disruptions Get This Book
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TRB’s National Cooperative Freight Research Program (NCFRP) has released a pre-publication version of Research Report 39: Freight Transportation Resilience in Response to Supply Chain Disruptions. The report provides guidance to public and private stakeholders on mitigating and adapting to logistical disruptions to supply chains resulting from regional, multi-regional, and national adverse events, both unanticipated and anticipated.

The report, which makes a significant contribution to the body of knowledge on freight transportation and system resiliency:

(1) assesses research, practices, and innovative approaches in the United States and other countries related to improving freight transportation resiliency;

(2) explores strategies to build relationships that result in effective communication, coordination, and cooperation among affected parties;

(3) identifies factors affecting resiliency;

(4) analyzes potential mitigation measures;

(5) characterizes spatial and temporal scale considerations such as emergency planning and response timeframes;

(6) prioritizes response activities by cargo types, recipients, and suppliers;

(7) identifies potential barriers and gaps such as political boundaries, authorities, ownership, modal competition and connectivity, and social and environmental constraints; and

(8) examines the dynamics of supply chain responses to system disruptions.

The report also includes a self-assessment tool that allows users to identify the current capability of their organization and institutional collaboration in preparing for and responding to supply chain disruptions.

Disruptions to the supply chain and their aftermath can have serious implications for both public agencies and companies. When significant cargo delays or diversions occur, the issues facing the public sector can be profound.

Agencies must gauge the potential impact of adverse events on their transportation system, economy, community, and the resources necessary for preventive and remedial actions, even though the emergency could be thousands of miles away.

Increasing temporary or short-term cargo-handling capacity may involve a combination of regulatory, informational, and physical infrastructure actions, as well as coordination across jurisdictional boundaries and between transportation providers and their customers.

For companies, concerns can include such issues as ensuring employee safety, supporting local community health, maintaining customer relationships when products and goods are delayed, and ultimately preserving the financial standing of the company.

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