Statistical Office of the Republic of Serbia

The cost of transportation stems from the resources it requires—labor, equipment, fuel, and infrastructure. Many resources are purchased by firms that provide transportation services, such as labor purchased by a railroad or fuel bought by a trucking company. Other resources are purchased directly by the users of transportation, such as fuel purchased by households for automobile travel. In addition, federal, state, and local governments provide most of the transportation infrastructure, such as highways. The prices that transportation companies charge for transportation services become out-of-pocket costs to travelers and freight shippers, and influence their transportation choices. Because transportation is an input to the production of almost all goods and services, transportation price changes can influence the cost of other goods and services as well. Transportation prices themselves are affected by the prices of inputs, such as labor costs, fuel costs, and the costs of transportation parts.