One of the most promising strategies for reducing truck traffic in urban centers is the consolidation of consignments through cooperation and coordination among multiple businesses. However, various factors-including existing infrastructure systems, institutional and regulatory environments, socioeconomic and geographical characteristics, political climates, past and future changes in logistics and supply chain management, and market forces-will determine whether such a strategy can be adopted and function effectively in the United States. In this paper, the cost-effectiveness of a common type of consolidation scheme used in foreign countries is examined against the peddle-run system commonly used in the United States. The analysis results indicate that the current U.S. distribution system has substantial cost advantages. Demographic factors, population density, and urban area size, while having some effect on the logistics cost under the consolidation system, do not reverse the cost advantage of the peddle-run system within the range tested. The advantage of the peddle-run system will not be overcome without drastic policy changes, the imposition of truck size and weight restrictions, or investments in public terminals.