Determinants of Capacity Utilisation in Road Freight Transportation

Megersa Abate

Recent performance indicators in the European road freight transport sector show there is an excess capacity. To shed light on this, this paper studies two aspects of capacity utilisation in trucking: the extent of empty running and the load factor. Using a joint econometric modelling framework, the paper shows that they can be explained as a function of haul, carrier, and truck characteristics. For estimation, a unique dataset from the Danish heavy vehicle trip diary was used. The results indicate distance and being a for-hire carrier have a positive effect on capacity utilisation, whereas the effect of truck size is non-linear.

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