Geotab's Altitude Freight Efficiency Score Ranks U.S. Cities

In urban logistics, the efficiency of freight movement is paramount. A recent study from Altitude by Geotab highlights this necessity by ranking nine major U.S. cities based on their freight efficiency. This study serves as a critical tool for city planners and fleet managers aiming to optimize transportation networks.

The findings of this report are not just numbers; they represent significant insights into how cities can improve their freight operations. With real-world data sourced from medium- and heavy-duty trucks (Classes 3-8) throughout 2024, the study emphasizes the importance of evaluating freight efficiency to foster smarter infrastructure planning.

Understanding the Freight Efficiency Score

The Freight Efficiency Score by Altitude provides a quantitative measure of how well cities facilitate freight movement, using a scale from 0 to 100. A higher score reflects a more efficient and effective transportation system. The score is derived from three key metrics:

• Infrastructure readiness (60%): This measures congestion levels, predictability of congestion, and the duration of hours with low traffic.
• Infrastructure resilience (20%): This assesses how effectively a city manages and recovers from planned and unplanned disruptions, such as severe weather or large public events.
• Infrastructure externalities (20%): This metric evaluates the waste within the system, particularly focusing on idling times.

These metrics are crucial as they have a direct impact on the efficiency of freight movement. Increased congestion leads to higher operational costs due to wasted fuel and extended driver hours. Moreover, inadequate responses to disruptions can hinder a city's logistics, while excessive idling contributes to greenhouse gas emissions that adversely affect public health and air quality.

The Significance for Fleets

The Freight Efficiency Score has profound implications for freight fleets. While the report does not yet incorporate direct economic costs, it highlights the financial burdens associated with inefficiencies. An ATRI report estimates the marginal cost of trucking per hour in the U.S. at $90.78. Therefore, if a truck spends 200 hours per year stuck in congestion, it could incur about $18,000 annually in congestion-related expenses.

Fuel wastage also poses a significant financial concern. With an idling fuel rate of 0.8 gallons per hour, and a fuel cost of $3.60 per gallon, idling for 100 hours annually can lead to an additional expense of $288 per vehicle. These cumulative costs can have a significant impact, especially for fleets operating on narrow profit margins.

Top Performers in Urban Freight Efficiency

The study revealed that among the nine cities analyzed, Denver and Chicago excelled in freight efficiency. Denver received the highest score of 57, attributed to its impressive infrastructure readiness and minimal waste. Despite a moderate resilience score, Denver's ability to manage congestion effectively placed it at the top of the rankings.

Chicago, with a score of 54, distinguished itself by leading in infrastructure resilience. This is largely due to strategic investments in emergency response and route redundancy, which are increasingly crucial as cities grapple with unpredictable weather patterns.

Identifying Time Losses in Freight Operations

On the opposite end of the spectrum, Los Angeles and New York scored the lowest, at 23 and 25, respectively. Both cities face significant challenges related to congestion, which severely impacts their infrastructure readiness. However, New York did achieve the second-highest resilience score and also excelled in reducing idling times.

This points to an important distinction: a city might perform well in certain areas while still lagging in overall efficiency. For instance, New York's strong recovery capabilities showcase that resilience and readiness require different infrastructure strategies.

Insights from Cities in the Middle

Other cities fell into a moderate performance range, exhibiting mixed strengths and weaknesses. For example, Salt Lake City performed well in terms of congestion management but struggled with idling rates. The report suggests that cold weather might be a contributing factor, as other colder cities like Chicago and New York demonstrate significantly lower idling rates.

In a similar vein, St. Louis benefitted from its extensive highway network, achieving high scores in infrastructure readiness. In contrast, Atlanta demonstrated predictable congestion that bolstered its readiness score, but there remains room for improvement in resilience. Cities like Charlotte and Houston showed moderate performance across all metrics, indicating areas for potential growth.

Strategies for Cities and Fleets

The Freight Efficiency Score offers a valuable framework for both city planners and fleet managers looking to enhance their operational efficiency. By pinpointing specific weaknesses, planners can advocate for targeted investments to address these challenges. The report underscores the need for cities to learn from the varied approaches of others, such as Chicago and New York's distinct resilience strategies.

For example, cities like Salt Lake City could benefit from targeted corridor enhancements to accommodate increasing traffic demands, while others might prioritize anti-idling measures or improve emergency coordination protocols.

Nate Veeh, associate vice president of market development at Altitude by Geotab, emphasizes that cities aiming to enhance their freight efficiency should focus on investments that:

• Make traffic patterns more predictable
• Strengthen emergency response capabilities
• Reduce unnecessary vehicle idling as part of wider sustainability objectives

Planning for Future Freight Efficiency

The Altitude study indicates that freight efficiency cannot be defined by a single metric. Instead, cities should strive for balanced performance across congestion, resilience, and waste reduction. Denver and Chicago exemplify this balanced approach, highlighting the importance of comprehensive strategies in urban freight management.

As cities look to the future, these freight efficiency scores can empower planners to identify weaknesses, advocate for improvements, and prioritize investments strategically. Furthermore, Altitude aims to incorporate freight volume and economic impacts into future updates of the score, providing an even more holistic perspective on urban freight efficiency.

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