The concept of “gross product originating” (GPO) is a useful one for measuring the amount of gross national product (GNP) accounted for by transportation. The GNP equals the sum of GPO across all sectors of the economy. For transportation, the GPO refers to the value added by transportation service.
The estimates for gross product originating in transportation show a decline to 8.9 percent of gross national product in 1970 from 9.1 percent in 1965, but the sector changes have not been uniform. For example, value added by commercial airlines increased by nearly 84 percent compared with 7 percent for intercity buses. Value added by railroads increased by less than half of 1 percent, whereas trucking increased by a little over 10 percent.
Commercial trucking accounted for about 13 percent of the total value added by transportation in 1970. Private trucking in freight accounted for 17 percent, and nonfreight private trucking for 27 percent. Value added by railroads declined from almost 12 percent to 10 percent of the total transportation GPO.
In 1971, the railroads still remained the principal intercity freight carriers, but their revenue position declined because of the loss of much productive traffic to other modes of transportation. The trucks and the airlines had captured much of their highest class traffic, and the pipelines were carrying a large proportion of the movement of petroleum products.
The Motor Vehicle Manufacturers Association estimated that in 1974 trucks were hauling the following percentages of important products:
| Fruits and vegetables | to major markets |
73 | |
| Cattle and calves | 99 | ||
| Hogs | 100 | ||
| Sheep and lambs | 98 | ||
| Sand and gravel | 92 | ||
| Crushed stone | 75 | ||
| Portland cement | 83 | ||
| Motor vehicles | 48 | ||
| Refined petroleum products | 39 | ||
The ICC-regulated general freight haulers are the most conspicuous of all for-hire carriers seen on the highways because of the large number of vehicles and combinations used, mainly van trucks with van trailers and tractors with semitrailers and full trailers. Their cargos consist principally of general merchandise, such as food products and manufactured articles.
The operation for small shipments is similar in many respects to former railroad less-than-carload (LCL) freight handling. The shipments are picked up directly from the shipper, taken to a freight terminal for consolidation with other shipments going in the same direction, and loaded into over-the-road vehicles for the journey to the destination terminal, where the procedure is reversed.
Financing Highways in the 1960’s and 1970’s
By 1961, the principal change in highway revenues was the infusion of much higher levels of Federal aid, mostly drawn from imposts on highway users as a result of the 1956 Federal Aid Highway Act. The Act of 1961 continued the temporary increase in the Federal tax on motor fuels from 3 to 4 cents that was enacted in 1959 and due to expire on June 20, 1961. The rate was continued to the expected year of completion of the Interstate System in 1972 and since has been further extended.
Net Federal aid to other governments of $2.7 billion in 1961 more than trebled the 1956 figure, and it was increased to $4.9 billion in 1973. All Federal revenue applied to highways rose from $1 billion in 1956 to $7.4 billion in 1973.
A container being loaded aboard a ship.
An industry-government project called INTACT (intermodal air cargo test) demonstrates the loading and unloading of intermodal containers on an Air Force Galaxy (C-5A).
A demonstration at Colorado Springs, Colo., of a helicopter lifting an intermodal container.
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