This report examines why freight carriers and shippers choose one transport mode over others. It analyses the main determinants for using road, rail, inland waterways, coastal shipping or pipelines to move goods and assesses government policies to influence it. The study also reviews how shifting freight to more sustainable modes could reduce the contribution of goods transport to climate change and provides recommendations for more effective policies. The role of mode choice in alleviating congestion and making goods transport safer is also addressed. Three case studies from China, Canada and the Netherlands highlight modal-shift policies.