Transshipment

Zero-emission zones and zero-fatality cities have eliminated the last-mile advantages of moving goods by road. The need for transshipment from trucks to vans or cargo bikes at the fringes of the urban core has meant that road has lost the advantage it held over rail for so much of the last 100 years.

Its main export crop is cashew nuts, but drug money has flowed to corrupt officials as smugglers pay bribes to use the country’s coastline and remote airstrips for cocaine transshipments.

Higher minimum rates might be necessary to limit heterogeneity in rates and reduce transshipment.