This report provides an overview of U.S. international merchandise trade, reviews changes in trading patterns and modal trends, and examines shifts in the patterns of freight demand among U.S. international feight gateways. In addition, the report reviews the changing mix of traded commodities, focusing especially on transportation-related goods. It also examines U.S. freight transportation and port services and their important role in facilitating U.S. international merchandise trade. The report further analyzes the critical role freight transportation continues to play in enabling international trade and discusses capacity and access challenges that growth in international freight pose to the U.S. freight transportation system. It also looks as some of the new security challenges facing the U.S. freight transportation system as the nation implements transportation security measures following the 2001 terrorist attacks. The report concludes with a discussion of some of the major underlying factors that are driving change and continuity in U.S. international merchandise trade and the possible effects of trade growth on the nation's transportation networks.