Cost of Transportation Services by Commodity

Many industries produce more than one commodity, and many commodities are produced by more than one industry. The make table in the TSAs shows the commodities made by each industry. The make table for 2002 shows, for example, that the utilities industry makes primarily utilities commodities ($314.7 billion) but also a small amount of natural resources and mining products ($0.03 billion) and commodities classified as "other"1 in the make table ($0.96 billion). Utilities are produced by the utilities industry itself, but also by the manufacturing industry and by industries classified as "other" in the make table.

Because commodities are produced by multiple industries, the amount of transportation required to deliver a commodity differs from the amount of transportation required to produce a dollar of industry output. The TSA commodity-by-commodity direct requirements table shows the amount of transportation required (for each of the transportation modes listed on the commodity-by-commodity table's columns) to deliver a dollar of a commodity (listed on the commodity-by-commodity table's rows) to consumers. This information is summarized in table 4. As shown in table 4, the largest amount of transportation (for-hire and in-house combined) required to deliver a dollar of a commodity to final users in 2002 was for utilities. The amount of transportation required to deliver a dollar of utilities fell from 8.6¢ in 2002 to 6.0¢ in 2006. This decline reflects the decline in the use of transportation by the utilities industry in producing the utilities delivered to final users. As a result, utility products fell from the most costly, in terms of the amount of transportation required to deliver, in 2002 to the second most costly in 2006. In 2006, a larger amount of transportation was required to deliver a dollar of manufacturing products to consumers (6.2¢). In delivering wholesale/retail trade and professional/business services, the amount of in-house air, rail, truck, and water transportation required to deliver a dollar's worth of goods exceeded the amount of for-hire air, rail, truck, and water transportation required.

(See table 4. For further detail, see Appendix A, table 3 at this page.)

1 In the TSAs, "other" commodities consist primarily of government enterprise (except State and local government passenger transit) commodities.