External costs of intercity truck freight transportation

From a societal perspective, it is desirable for all transportation users to pay their full social (private and external) costs. We estimate four general types of external costs for intercity freight trucking and compare them with the private costs incurred by carriers. Estimated external costs include: accidents (fatalities, injuries, and property damage); emissions (air pollution and greenhouse gases); noise; and unrecovered costs associated with the provision, operation, and maintenance of public facilities. The analysis reveals that external costs are equal to 13.2% of private costs and user fees would need to be increased about threefold to internalize these external costs.     

Impacts of highway congestion on freight operations: perceptions of trucking industry managers

To better understand how road congestion adversely affects trucking operations, we surveyed approximately 1200 managers of all types of trucking companies operating in California. More than 80% of these managers consider traffic congestion on freeways and surface streets to be either a “somewhat serious” or “critically serious” problem for their business. A structural equations model (SEM) is estimated on these data to determine how five aspects of the congestion problem differ across sectors of the trucking industry. The five aspects were slow average speeds, unreliable travel times, increased driver frustration and morale, higher fuel and maintenance costs, and higher costs of accidents and insurance. The model also simultaneously estimates how these five aspects combine to predict the perceived overall magnitude of the problem. Overall, congestion is perceived to be a more serious problem by managers of trucking companies engaged in intermodal operations, particularly private and for-hire trucking companies serving airports and private companies serving rail terminals. Companies specializing in refrigerated transport also perceive congestion to be a more serious overall problem, as do private companies engaged in LTL operations. The most problematic aspect of congestion is unreliable travel times, followed by driver frustration and morale, then by slow average speeds. Unreliable travel times are a significantly more serious problem for intermodal air operations. Driver frustration and morale attributable to congestion is perceived to be more of a problem by managers of long-haul carriers and tanker operations. Slow average speeds are also more of a concern for airport and refrigerated operations.     

An assessment of the performance of the European long intermodal freight trains (LIFTS)

Intermodal rail/road freight transport has always been considered as a competitive alternative to its road freight counterpart in the European medium- to long-distance corridors (markets). Such consideration has been based on the increasing competitiveness of some innovative rail services and the existing and prospective performance of both modes in terms of the full social – internal or operational and external – costs. The most recent innovation of rail technologies and related services launched by some European railway companies, still at the conceptual level, is the Long Intermodal Freight Train (LIFT). This is supposed to be a block train operating in long-distance corridors (markets) with a substantial and regular freight demand.This paper develops analytical models for assessing the performance of the LIFTs, the already-operating Conventional Intermodal Freight Trains (CIFTs), and their road counterpart as well. The performance consists of the full – internal (private) and external – costs of the door-to-door delivery of loading units – containers, swap-bodies, and semi-trailers. The internal costs embrace the operational costs of the transport (rail and road) and intermodal terminal operators. The external costs include the costs of the impacts of door-to-door delivery of loading units on society and the environment. These negative externalities include noise, air pollution, traffic accidents, and congestion.The models are applied to a simplified version of intermodal and road transport system using inputs from the European freight transport sector. The aims are to compare the full costs of particular modalities in order to investigate the potential of the LIFTs as compared with the CIFTs in improving the internal efficiency of the rail freight sector and its competitiveness with respect to its road counterpart. In addition, the paper attempts to assess some effects on the potential modal shift of EU (European Union) transport policies on internalizing transport externalities.     

Stochastic freight flow patterns: implications for fleet optimization

Trucking, rail and other types of transportation networks share the common feature of moving equipment and crews between spatially separated terminals to accommodate the transportation of goods or people. This paper develops measures for temporal and spatial imbalances in freight flows, and applies these measures to a major trucking network. Fundamentally, the randomness inherent to a system of terminals is mitigated by pooling freight flows among terminal groups, and by pooling freight flows over many time periods. In the terminal network that we examined, long-run freight imbalances ensure that empty equipment movements must equal or exceed 13.3% of loaded movements at individual terminals and 8.2% of loaded movements at terminal groups. Due to short-run freight imbalances, the number of empty movements could increase by about 50% over the long-run average; greater increases would occur if equipment flows must be balanced on each travel lane. ©     

Estimating transboundary economic damages from climate change and air pollution for subnational incentives for green on-road freight

Subnational incentives to adopt zero emission vehicles (ZEVs) are critical for reducing the external economic damages posed by transportation to air quality and the climate. Few studies estimate these damages for on-road freight, especially at scales relevant for subnational policies requiring cross-border cooperation. Here, we assess the damages to US receptors from emissions of air pollutants (PM_2.5, NO_x, SO₂, NH₃), and greenhouse gases (CO₂, CH₄, N₂O) from medium and heavy duty freight trucking, and the benefits of ZEV adoption by census division in the Province of Ontario. We develop an integrated modelling framework connecting a travel demand model, a mobile emissions simulator, and a regression based marginal damages model of air pollutants and climate change. We estimate $1.9 billion (2010 USD) in annual cross-border damages, or $0.16/VKT, resulting from scaled up atmospheric emissions from a ‘typical day’ of medium and heavy duty truck traffic volume for Ontario in 2012. This implies approximately $8000 per truck per year in damages, which could inform an economic incentive for emission reduction. The provincial goal of 5% ZEV adoption would reduce GHG emissions in 2012 by 800 ktCO₂e, yielding $89 Million (2010 USD) in cross-border benefits annually, with air quality co-benefits of $83/tCO₂e. This result varies between −19% and 22% based on sensitivity analysis for travel and emissions models, though economic damages are likely the largest uncertainty source. Such advances in subnational scale integrated modeling of the environmental impacts of freight can offer insights into the sustainable design of clean freight policy and programs.     

External Costs of Domestic Container Transportation: Short‐Sea Shipping versus Trucking in Taiwan

Abstract

This paper explores the external costs of domestic container transportation in Taiwan by analysing the origin and destination of current container cargoes. After reviewing an extensive literature survey of methods of external cost, a comparison of external costs between trucking and short sea shipping (SSS) by corridor is made by using a model developed in this paper. Based on the findings that external costs of SSS are considerably lower than truck transport and can be a viable alternative to current domestic container cargo transportation, we discuss the significance and managerial implications of SSS from the perspective of green logistics. In so doing, a top‐down approach is employed for developing government policies, which aim to not only reduce the external costs of domestic container transportation but also promote SSS in Taiwan.     

Impacts of trade related sustainability strategies on freight transportation: Modelling framework and application for France

The circular and functional economies are being presented in the literature as potential strategies for future sustainable societies. In terms of the consequences for supply chains, they will promote a much more dispersed and diversified, local and network based usage of goods than the current economy, which is comparatively linear, concentrated, long distance oriented and scale economy based. A gap in the literature is the assessment of the effects of these systems on freight transport flows. In our paper, we present a first attempt at estimating this impact using freight transport scenario building and quantitative modelling. In order to translate the main parameters that characterize these systems into factors determining freight transportation volumes, we develop a framework based on a typology of goods categories describing functional and spatial proximity between producers and consumers. In order to simulate changes in the economy, we develop scenarios for the shifting of goods from one category to another and, additionally, include internalization policies that should guide their realization. We calculate the impacts on freight flows using a new interregional transport model for France that includes distribution chains and produces estimates of external costs of transport. Our results show that circular and functional economies could lead to a 2–5% reduction of air pollutant emissions and up to a 14–26% reduction if combined with the internalization of external costs. The scenario with ongoing mass production for differentiated demand is found to lead to a 5% increase of environmental impacts compared to the baseline.     

Calculation of external costs for freight transport

Abstract

The negative impacts of transport are in general associated with costs. These costs are usually denoted as ‘external costs’ or ‘externalities’. This paper presents a tool for calculating external costs for freight transport together with its application to a number of case studies. The categories considered include: air pollution, greenhouse gases, noise, accidents and congestion. Results are presented for a number of different transport alternatives as total costs and divided into categories. The uncertainties in the results are discussed. The assessment of these costs is essential for predicting future transport costs.     

External costs of the Belgian interurban freight traffic: a network analysis of their internalisation

The strong expansion of freight road transports throughout Europe is an important source of congestion and pollution, as well as a cause of many accidents. To solve this problem will require the conjunction of many different remedies. One element of solution would be the promotion and substitution of transportation modes with less negative effects. This paper is focused on this solution. It presents some results obtained from a detailed GIS modelling of the Belgian multimodal freight transport network inserted within the overall trans-European network. It outlines the results of a simulation of the flows over the Belgian network in 1995 which allows to estimate some of the costs of several external effects of freight transports: the costs of pollution, congestion, accidents, noise and road damages. This paper provides also the simulated impacts on modal choice of a marginal external cost internalisation, and an estimation of the corresponding external cost savings.     

Public regulation and passengers importance in port infrastructure costs

Because ports are conceived and designed mainly to be the transfer point of various types of freight, passengers tend to be forgotten in the analysis of port costs. In this paper first we investigate the importance of passengers in port infrastructure costs by means of a multi-output cost function estimated from 20 annual observations (1986-2005) for 26 Spanish Port Authorities. Results show that, although a passenger weights on average less than one tenth of a ton, he or she represents as much as two tons of solid bulk and about three tons of containerized general cargo in terms of marginal costs. Secondly, we compare the marginal costs of different cargoes with their price caps established by law. Results suggest that some type of second best pricing is induced by present regulation.     

Trucking industry demand for urban shared use freight terminals

The issue of shared use urban freight facilities first received attention during the 1970s when it was observed that, while inter-urban freight movements were becoming increasingly efficient, there were significant diseconomies in the movement of freight via truck within urban areas. Early research suggested that shared urban freight facilities should be constructed so that trucking companies could consolidate smaller shipments into larger ones. In the past few years, the concept of Urban Ports has gained increasing attention, not just for carriers who need to load and unload freight, but to provide a place near the urban center for truckers to wait out peak traffic periods. In this paper, using recently developed survey data, we examine trucking company interest in such facilities by examining the results of an ordered probit demand model.     

Evaluating the public investment mix in US freight transportation infrastructure

This research empirically evaluates the public sector investment in the US freight transportation infrastructure. In particular, the infrastructures to support the two most comparable modes of freight transportation – highway and intermodal rail – are examined as alternatives for public fund allocation. Indicators for public sector transportation infrastructure investment mix are established based on financial analysis of both private and social costs and benefits, as well as the propensity of freight shippers to utilize such infrastructures. The research results in recommendations for the aggregate allocation of public funds in the US based on these indicators. We find that approximately a quarter of truck freight could be handled at a 25% lower cost if rail infrastructure to support it existed. Because an additional 80% reduction in social costs could be achieved through this modal conversion, the public sector is a critical participant in creating a more efficient transportation infrastructure.     

Regulatory reform and freight mode choice

Reform of trucking Vehicle Weights and Dimensions (VWD) regulations in Canada is now underway. The effect these reforms will have on the freight transportation industry are only recently the subject of research. This paper is part of this new research effort, aimed at understanding how regulatory reform in the trucking sector will affect the existing competitive relationship between trucks and the railways. The paper presents the results of study and research into modelling the relationship between mode choice and the service characteristics that are affected by VWD reform.Using several periods of data, a series of econometric models are developed which help to elucidate the relative relationships between the mode service characteristics for both of the principal interprovincial freight modes. A technique is developed and presented to model railway user costs in order to overcome the complex and often unrepresentable pricing activities of Canadian railways.The strength of the developed econometric models is presented, including their significance and statistical reliability. This is further reinforced by the similarities exhibited by all the models in the series. The selected model is applied to predict market service responses required of the railway industry in order to compete with the trucking sector now adapting to the new regulations.The impact of the newly implemented vehicle weight and dimension reform on the rail transportation industry is analyzed and railway industry improvements aimed at maintaining its market share are presented. The results predicted by the model show that railway user cost reductions should be moderate, and likely less than the level of inflation over the period of time when trucking converts its fleet to take advantage of the new regulations.Abbreviations AASHTO American Association of State Highway and Transportation Officials - CCMTA Canadian Conference of Motor Transport Administrators - EPI End products, inedible commodity classification - GVW Gross Vehicle Weight - NA 1988 VWD National Agreement - RTAC Roads and Transportation Association of Canada - VWD Vehicle Weight(s) and Dimension(s) - WA 1988 VWD Western Agreement     

Impacts of combining partial and general equilibrium modelling in freight transport analyses – a forest sector case study from Norway

Abstract

The forest sector in Norway is very transport intensive, accounting for approximately 14% of total domestic freight transport traffic on Norwegian roads. This paper presents an analysis linking a general equilibrium freight transport modelling tool with a partial equilibrium model of the forest sector. The freight transport model predicts transport costs, modal split and transport patterns, and the results are treated as inputs to the forest sector model. The objective of the paper is to analyse the modelling effect of taking forest sector model effects back into the freight transport model and treated as new demand. Compared to a base scenario for the year 2020, we compare analyses with and without this new demand from the forest sector model back into the freight transport modelling tool.     

Freight Transport Deceleration: Its Possible Contribution to the Decarbonisation of Logistics

The paper challenges the conventional view that the movement of goods through supply chains must continue to accelerate. The compression of freight transit times has been one of the most enduring logistics trends but may not be compatible with governmental climate change policies to cut greenhouse gas emissions by 60–80% by 2050. Opportunities for cutting CO₂ emissions by ‘despeeding' are explored within a freight decarbonisation framework and split into three categories: direct, indirect and consequential. Discussion of the direct carbon savings focuses on the trucking and deep-sea container sectors, where there is clear evidence that slower operation cuts cost, energy and emissions and can be accommodated within current supply chain requirements. Indirect emission reductions could accrue from more localised sourcing and a relaxation of just-in-time (JIT) replenishment. Acceleration of logistical activities other than transport could offset increases in freight transit times, allowing the overall carbon intensity of supply chains to reduce with minimal loss of performance. Consequential deceleration results from other decarbonisation initiatives such as freight modal split and a shift to lower carbon fuels. Having reviewed evidence drawn from a broad range of sources, the paper concludes that freight deceleration is a promising decarbonisation option, but raises a number of important issues that will require new empirical research.     

The impact of terminal handling charges on overall shipping charges: an empirical study

Before the introduction of terminal handling charges (THCs), traditional freight rates included both ocean freight charges and terminal charges at ports. Since the introduction of THCs in 1991, the freight rate has become a “port-to-port” charge that covers only the sea leg, while the on-shore costs of using the container terminals are charged separately as THCs. Although both THCs and freight rates are collectively set by conferences, in this study we argue that the former are easier to enforce because they are invariant to other attributes such as haulage distance, inland transport services and types of commodity being shipped. This argument is consistent with the empirical findings from this study that suggest the separation of ocean freight rates from terminal charges has increased the overall shipping charges. In addition, we find that THCs affect the Hong Kong container handling industry by lowering its throughput.     

Modelling the full costs of an intermodal and road freight transport network

This paper develops a model for calculating comparable combined internal and external costs of intermodal and road freight transport networks. Internal costs consist of the operational-private costs borne by the transport and intermodal terminal operators, and the time costs of goods tied in transit. The external costs include the costs of the impacts of both networks on society and the environment such as local and global air pollution, congestion, noise pollution, and traffic accidents. The model is applied to the simplified configurations of both networks using the inputs from the European freight transport system. The objective is to investigate some effects of European Union policy, which aims to internalise the external costs of transport, on the prospective competition between two networks from a social perspective.     

Evaluation of fuel cell auxiliary power units for heavy-duty diesel trucks

A large number of heavy-duty trucks idle a significant amount. Heavy-duty line-haul truck engines idle about 20–40% of the time the engine is running, depending on season and operation. Drivers idle engines to power climate control devices (e.g., heaters and air conditioners) and sleeper compartment accessories (e.g., refrigerators, microwave ovens, and televisions) and to avoid start-up problems in cold weather. Idling increases air pollution and energy use, as well as wear and tear on engines. Efforts to reduce truck idling in the US have been sporadic, in part because it is widely viewed in the trucking industry that further idling restrictions would unduly compromise driver comfort and truck operations. The auxiliary power units (APUs) available to replace the idling of the diesel traction engine all have had limited trucking industry acceptance. Fuel cells are a promising APU technology. Fuel cell APUs have the potential to greatly reduce emissions and energy use and save money. In this paper, we estimate costs and benefits of fuel cell APUs. We calculate the payback period for fuel cell APUs to be about 2.6–4.5 years. This estimate is uncertain since future fuel cell costs are unknown and cost savings from idling vary greatly across the truck fleet. The payback period is particularly sensitive to diesel fuel consumption at idle. Given the large potential environmental and economic benefits of fuel cell APUs, the first major commercial application of fuel cells may be as truck APUs.     

Optimal location of transshipment depots

A number of agricultural commodities are either transported once harvested to a destination outside the production region or processed (or consumed) at a centrally located facility within the production region. One or more depots (or assembly points) can be located optimally within the harvesting region to reduce the overall shipment costs when transshipment at a lower freight rate can be achieved from the depot. Processing at the depot to concentrate the commodity, or to select desired fractions from the raw material, can achieve additional reductions in freight costs and increase the economic benefit.A model based on a circular harvesting region with uniform production per hectare and a linear transport function was used to define the optimal location of the depots. In the case of transshipment out of the supply region, a single depot was considered. A transshipment depot can be placed within the supply region for a net reduction in transport costs as long as the transshipment freight rate is less than approximately 85% of the collection freight rate.For transshipment to a central processing facility, the supply region was divided into uniform sectors and the optimal depot placement in a sector was located. Given a non-negative transshipment freight rate and that all production passes through the depot, the optimal depot placement cannot lie beyond 70.7% of the radius. A minimum reduction in the ratio of the freight rates is also required for the shipment point to move from the centre of the region to within a sector. Division of the production region into an infinite number of sectors was examined and it was found that convergence to the maximum benefit (at infinite number) was rapid so that, with just eight or nine sectors, 80% of the limiting benefit was obtained. The model was developed with the harvesting of milk in mind, but appears to relate to a wide range of harvestable low value bulky agricultural commodities.For a circular harvesting region, it was found that the economic benefit varied as the cube of the radius of the production region and linearly with the production intensity, regardless of whether transshipment was internal or external. The economic benefit was quantified for both variants of the model using selected parameters pertinent to milk harvesting.