Transportation and Logistics –
This report provides a comprehensive analysis of the U.S. transportation and logistics industry, examining its integral role in both the national economy and defense mobilization. Through industry research, expert interviews, and field studies, the study evaluates six key sectors—air freight, deep-sea shipping, ports and harbors, railroads, trucking, and warehousing—identifying strengths and systemic vulnerabilities. The research study’s analysis seeks to ascertain specific focus areas that can help to preserve strengths while mitigating short-and long-term vulnerabilities across the industry. The study first analyzes the transportation industry and its sub-sectors, and then examines the industry’s role in the U.S. economy and national security and mobilization. Next, the study identifies industry issues and concerns for consideration, and finally, provides policy recommendations for potential implementation.
While the United States possesses considerable capacity in air, rail, and trucking, its competitive advantage is narrowing due to fragmented coordination, aging infrastructure, workforce shortages, and increasing competition from global challengers, particularly the People’s Republic of China. These issues pose significant risks to economic stability and the nation’s ability to project military power in future conflicts, and yet, a common refrain during engagements across industry sectors was that it would take a catastrophe to generate a catalyst for action.
Problem Statement
To strengthen the U.S. transportation and logistics industry’s resilience, national security leaders should examine the industry as a whole, including intermodal connection points, to consider ways to maximize throughput across entire transportation corridors rather than stove-piped sectors.
The report emphasizes the need to integrate emerging technologies and wargaming into national logistics planning. Advanced tools like artificial intelligence (AI), automation, and digital twins are transformative tools, offering predictive capabilities, efficiency gains, and enhanced situational awareness. However, technological solutions alone are insufficient, and adoption remains uneven across sectors and often lacks strategic alignment with defense needs.
The report derives six key policy recommendations: increase coordination across stakeholders—whole-of-government, industry, allies and partners, and academia—invest strategically in infrastructure; integrate logistics into national-level planning and wargaming; incentivize technological innovation; strengthen the transportation workforce; and modernize regulatory frameworks. Together, these measures aim to shift the transportation and logistics industry from a reactive system to a proactive, integrated framework capable of supporting both commercial needs and rapid defense mobilization.
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