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The US Maritime Administration (MARAD) has released details of a study in which it concludes that waterborne freight transportation is much less affected by fuel charge increases than other modes of transportation.

The study, which was carried out by Maryland-based Transportation Economics and Management Systems, Inc. (TEMS), was sponsored by MARAD to review U.S. and international forecasts of potential oil prices and assess how higher fuel prices would impact different modes of transportation.

The report came to the conclusion that water transportation was more fuel-efficient and therefore far less affected by fuel price increases than trucking, particularly over longer shipping distances and where Roll-On/Roll-Off vessels - which have significantly lower fixed intermodal drayage and port costs - can be used.

Increased demand for rail/truck intermodal services is depleting available rail capacity, making existing and potential water services even more attractive, the study said.

In an analysis of the five major U.S. freight corridors that serve over 95 percent of the U.S. population – Great Lakes (and St. Lawrence Seaway), Gulf Coast, Mississippi River, East Coast, and West Coast - the report said domestic waterborne containerized traffic has the potential to increase by a factor of 2 to 3 as diesel fuel prices rise from $2 up to $7 per gallon.

The study said three of the corridors - the Mississippi River, Gulf of Mexico, and Great Lakes-St. Lawrence Seaway - could generate sufficient domestic traffic volume to initiate new water services.

On the East and West Coasts of the US, a portion of the huge and growing volume of U.S. international trade now distributed inland through gateway Atlantic and Pacific seaports could be moved by new coastal feeder services, the report said.

Commenting on the study, MARAD concluded "As the economy revives and energy demand grows, oil prices should rise again. Higher fuel prices should encourage investment in waterborne transportation by providing a cost incentive for a significantly enhanced role for water in the U.S. transportation network."