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Explaining Truck Rate Variations for Produce Shipped to the Northeast

Author

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  • Beilock, Richard P.
  • Koburger, John H.
  • Morgan, Jeffrey P.

Abstract

Models are developed to examine the determinants of weekly truck rates for produce shipped to the Northeast from California and Florida. ln the empirical work, a large proportion of the variation in rates is explained and the estimated parameters are generally consistent with a priori expectations. The total quantity of produce shipped from each state, the proportion of this total which is compatible with the commodity in question, and the F.O .B. price if the commodity were found to be the most important determinants of truck rate levels. Fuel costs have a surprisingly weak influence, at least in the short run, and for Florida origin commodities the truck rate-fuel cost relationship appears to have weakened over the 1979-1983 sample period.

Suggested Citation

  • Beilock, Richard P. & Koburger, John H. & Morgan, Jeffrey P., 1984. "Explaining Truck Rate Variations for Produce Shipped to the Northeast," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 13(1:), April.
  • Handle: RePEc:ags:nejare:159264
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    References listed on IDEAS

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    1. Beilock, Richard & Shonkwiler, J. Scott, 1983. "Modeling Weekly Truck Rates for Perishables," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 15(01), pages 83-87, July.
    2. Johnson, Marc A., 1981. "Current And Developing Issues In Interregional Competition And Agricultural Transportation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(01), July.
    3. Miklius, Walter, 1967. "Estimating the Demand for Truck and Rail Transportation: A Case Study of California Lettuce," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
    4. Christensen, Robert L., 1982. "Some Factors Affecting the Future of Beef Production in New England," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 11(1:).
    5. De Vany, Arthur S & Saving, Thomas R, 1977. "Product Quality, Uncertainty, and Regulation: The Trucking Industry," American Economic Review, American Economic Association, vol. 67(4), pages 583-594, September.
    6. Johnson, Marc A., 1981. "Current and Developing Issues in Interregional Competition and Agricultural Transportation," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 13(01), pages 59-68, July.
    7. Dunn, James W., 1981. "The Effect of Higher Energy Prices on the Competitive Position of Northeast Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 10(2:), October.
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    Keywords

    Crop Production/Industries;

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