The deregulation of the trucking industry in the US began in 1978 and was completed in 1980. This study tests for economies of scale and productive efficiency in the trucking industry. Results indicate constant returns to scale in the trucking industry for both pre- and post-deregulation periods. Gains from mergers are likely to be moderate.
Topic: 12.2 Surface Freight
An approach to estimating differential inter-zonal marginal costs for a transport system is illustrated using data of a Chilean trucking company. The results reveal important differences among marginal cost estimates over different origin-destination pairs.
Cost Differentials Among Household Goods Carriers: Network Effects, Operating Characteristics, and Shipment Composition
This paper examines the structure and costs of the household goods motor carrier industry which is characterised by both large van line systems and smaller independents. The results suggest that firms of varying sizes can operate efficiently and offer a wider range of services.
Some Implications of Sunk, Congestion and Seasonal Opening Costs within a Regional Grain Handling and transport System
A study of the Eyre Peninsula in South Australia shows that, if the grain handling system were being constructed from scratch, it would be cost effective to concentrate it at fewer sites. But when account is taken of sunk costs, congestion costs and opening costs, much less rationalisation is justified.
Cost calculations lead to an analysis of the limits of distance and other factors which determine whether it is rational to send goods by road, by rail, or by a combination of road and rail.
The methodology used in this paper for estimating the costs of motor carriers is found to be remarkably successful. Smaller carriers need to grow, and specialist firms need to diversify. All carriers should be allowed to carry less-than-truckload as well as truckload traffic.
An investigation of freight costs in the regions of Great Britain shows that Scotland, Northern and East Anglia have the highest costs; but the differences appear to be relatively small. Freight cost is of varying importance to industries, some of which are local and some international. Attempts to reduce this cost should therefore be selective.
The location of economic activity is often considered on the basis of point trading models which show the cost of transport of products. The author suggests that the models are defective because they do not make specific allowance for backloading; he outlines a method to remedy this.
A note on the article by Joseph S DeSalvo in the January 1969 issue of this Journal.
The output of the linehaul process function is measured in ton-miles per hour. This article analyses the various factors which can affect ton-miles per hour, such as weight of train, number and weight limit of cars, horsepower, number of axles, gradient and curvature of route. The process function is then translated into a cost function.