Network Economies of Scale in Short Haul truckload Operations

Network Economies of Scale in Short Haul truckload Operations

This paper quantifies the significant economies of scale present in a short haul truckload drayage market through the application of a minimum cost scheduling algorithm to actual shipments. This technique offers an alternative to econometric methods which have led to conflicting conclusions with regard to economies of scale in trucking.

Share Content

Facebook
Twitter
LinkedIn

Related Articles

Economies of Scale in Bus transport: I. Some British Municipal Results

This study was prompted by the proposal to merge a number of municipal transport undertakings into Passenger transport Authorities. The authors analyse figures showing various working expenses per bus-mile, and find no evidence of scale economies. They point out, however, that the P.T.A.s will be larger than any undertaking in their sample, and that a different conclusion might conceivably be reached if data were available on costs per passenger-mile. Extension of one-man operation appears to offer greater scope for economies than amalgamation.

View Journal »