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On Shipment Size and Freight Tariffs Technical Constraints and Equilibrium Prices

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  • François Combes

Abstract

The objective of this paper is to analyse in detail the structure of road freight tariffs. To do so, a market equilibrium model is designed, with a detailed representation of the technology of carriers, and of the logistic decisions of shippers. In particular, shippers send shipments of endogenous sizes, which are consolidated by carriers in vehicles of fixed capacities. The model shows that even at marginal cost pricing, freight rates have a complex structure, which is explained by the simultaneous presence of access costs and of the vehicle capacity constraint, and by the logistic costs of shippers. © 2013 LSE and the University of Bath

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  • François Combes, 2013. "On Shipment Size and Freight Tariffs Technical Constraints and Equilibrium Prices," Journal of Transport Economics and Policy, University of Bath, vol. 47(2), pages 229-243, May.
    • Handle: RePEc:tpe:jtecpo:v:47:y:2013:i:2:p:229-243
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    Cited by:

    1. François Combes & Julien Harache & Martin Koning & Eric Morau, 2015. "Empirical Analysis of Freight Transport Prices Using the French Shipper Survey ECHO," Post-Print hal-01920396, HAL.
    2. Abate, Megersa & de Jong, Gerard, 2014. "The optimal shipment size and truck size choice – The allocation of trucks across hauls," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 262-277.
    3. Christine Tawfik & Sabine Limbourg, 2018. "Pricing Problems in Intermodal Freight Transport: Research Overview and Prospects," Sustainability, MDPI, vol. 10(9), pages 1-22, September.

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