Proceedings of ICLT 2013
The delay cost of truck and freight pricing practices
Areekamol Tor.Chaisuwan; Nakorn Indra-Payoong; Sarawut Jansuwan
Faculty of Logistics, Burapha University, Thailand; Faculty of Logistics, Burapha University, Thailand; Faculty of Logistics, Burapha University, Thailand
International Conference on Logistics & Transport 2013, Kyoto, Japan, pp. 252-261
Abstract
This research analyses the pricing and delay cost of truck on the Interstate highway 15 (I-15) in Utah. A practical framework uses the data source form Utah Department of Transportation (UDOT), Freight Analysis Framework version 3 (FAF3) and American Transportation Research Institute (ATRI) to estimate the delay cost of truck. Compared with Uship, the online shipping marketplace in the US, and the average truck operating costs per mile, the markup of freight price can implicitly be derived. The seasonal factor is also introduced to adjust a regular freight price, particularly during the winter season. The empirical studies have indicated that a trucking company could lose a profit on the Washington-Box Elder route because a significant delay cost is imposed. On the Washington-Salt Lake City, Iron-Davis and Iron-Weber routes, a truck operator is taken an opportunity cost by cutting or providing limited services during the winter season. The results of this study are primarily to support freight transport research and policies and to provide a more accurate cost of annual truck congestion for commercial vehicle operators on the interstate highways.
Keywords
logistics; transport; supply chain
Citation
Areekamol Tor.Chaisuwan; Nakorn Indra-Payoong; Sarawut Jansuwan (2013). The delay cost of truck and freight pricing practices. Proceedings of the International Conference on Logistics & Transport (ICLT 2013), Kyoto, Japan, pp. 252-261.