The optimal shipment size and truck size choice: The allocation of trucks across hauls

Publisher's full text
Gerard De Jong

There has been a growing interest in understanding how firms allocate their trucks across hauls, and how this allocation changes under various economic environments. This study investigates how variations in route/haul, carrier and vehicle characteristics affect the optimal vehicle size choice and the associated choice of shipment size. We show that the two choices are derived from the same optimization problem. There can be a continuum of shipment sizes, but decision-makers in freight transport have to choose from a limited number of vehicle alternatives. Therefore, we use a discrete-continuous econometric model where shipment size is modeled as a continuous variable, and vehicle size/type choice as a discrete variable. The results indicate that when faced with higher demand, and during longer trips firms are more likely to use heavier vehicles and ship in larger quantities which suggest that firms are realizing economies of scale and economies of distance. The study also discusses the effect of vehicle operating cost on the vehicle selection process and its policy implications.

MEET US


7
Dec

Shipping and the environment – research meets reality

Centre for Transport Studies (CTS) in co-operation with Ports of Stockholm invite you to the seminar Shipping and the environment – research meets reality.

LATEST NEWS


2017-10-16

ERPUG Forum

The five-year anniversary of European Road Profile Users' Group (ERPUG) Forum will take place at Ramboll head quarter, Copenhagen, Denmark October 19-20, 2017.


2017-09-29

Self-driving buses in Sweden next year?

A self-driving, fossil-free bus. This idea might become reality through a forthcoming collaborative project involving the Swedish National Road and Transport Research Institute (VTI), Linköping University and several other participants. The project group aim...


2017-09-29

New climate-proof solutions for hard surfaces in cities

High-density road infrastructure that emphasise maximum durability and minimum maintenance create inflexible systems, which put increased stress on urban trees and lead to increased risk for flooding. Over the past five years, the ‘Climate-proof solutions for...


2017-09-29

VTI is preparing for automated vehicles

Automation of traffic systems will lead to major changes. The European Union’s (EU) CoEXist research project began in June 2017 with the aim of preparing cities and road operators for the introduction of self-driving vehicles. The Swedish National Road and...


2017-07-05

Vehicle Driver Monitoring: sleepiness and cognitive load

To prevent road crashes it is important to understand driver related contributing factors, which have been suggested to be the critical reason in 94 per cent of crashes. The overall aim of the project Vehicle Driver Monitoring has been to advance the...


2017-06-29

Tomas Svensson new director-general

Tomas Svensson was today appointed Director-General of VTI. Tomas has been acting Director-General since January 2017.