IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v11y2005i3p149-159.html
   My bibliography  Save this article

Choice of air cargo transshipment airport: an application to air cargo traffic to/from Northeast Asia

Author

Listed:
  • Ohashi, Hiroshi
  • Kim, Tae-Seung
  • Oum, Tae Hoon
  • Yu, Chunyan

Abstract

Based on a unique data set of 760 air cargo transshipment routings to/from the Northeast Asian region in 2000, this paper applies an aggregate form of a multinomial logit model to identify the critical factors influencing air cargo transshipment route choice decisions. The analysis focuses on the trade-off between monetary cost and time cost while considering other variables relevant for choice of transshipment airport. The estimation method considers the presence of unobserved attributes, and corrects for resulting endogeneity via a two-stage least-squares estimation using instrumental variables. Our empirical results show that choice of the air cargo transshipment hub is more sensitive to time cost than the monetary costs such as landing fees and line-haul price. For example, our simulation results suggest that a 1-h reduction in total transport and processing time for a particular origin–destination air cargo traffic would be more effective than a $1000 reduction in airport charges. This suggests that it is important to reduce air cargo connecting time at an airport via adequate investment in capacity and automation even by increasing landing and other airport charges.

Suggested Citation

  • Ohashi, Hiroshi & Kim, Tae-Seung & Oum, Tae Hoon & Yu, Chunyan, 2005. "Choice of air cargo transshipment airport: an application to air cargo traffic to/from Northeast Asia," Journal of Air Transport Management, Elsevier, vol. 11(3), pages 149-159.
  • Handle: RePEc:eee:jaitra:v:11:y:2005:i:3:p:149-159
    DOI: 10.1016/j.jairtraman.2004.08.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699704000535
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jairtraman.2004.08.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Brownstone, David & Train, Kenneth, 1999. "Forecasting new product penetration with flexible substitution patterns," Department of Economics, Working Paper Series qt3tb6j874, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    2. Brownstone, David & Train, Kenneth, 1998. "Forecasting new product penetration with flexible substitution patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 109-129, November.
    3. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
    4. Tae Hoon Oum & Anming Zhang & Yimin Zhang, 1995. "Airline Network Rivalry," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 836-857, November.
    5. Malchow, Matthew B. & Kanafani, Adib, 2004. "A disaggregate analysis of port selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(4), pages 317-337, July.
    6. Douglas, George W & Miller, James C, III, 1974. "Quality Competition, Industry Equilibrium, and Efficiency in the Price-Constrained Airline Market," American Economic Review, American Economic Association, vol. 64(4), pages 657-669, September.
    7. Ken Hendricks & Michele Piccione & Guofu Tan, 1995. "The Economics of Hubs: The Case of Monopoly," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(1), pages 83-99.
    8. Cullinane, Kevin & Toy, Neal, 2000. "Identifying influential attributes in freight route/mode choice decisions: a content analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 36(1), pages 41-53, March.
    9. Oum, Tae Hoon & Park, Jong-Hun, 2004. "Multinational firms' location preference for regional distribution centers: focus on the Northeast Asian region," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(2), pages 101-121, March.
    10. Joseph Berechman & Oz Shy, 1996. "The Structure of Airline Equilibrium Networks," Advances in Spatial Science, in: Jeroen C. J. M. Bergh & Peter Nijkamp & Piet Rietveld (ed.), Recent Advances in Spatial Equilibrium Modelling, chapter 7, pages 138-155, Springer.
    11. Mori, Tomoya & Nishikimi, Koji, 2002. "Economies of transport density and industrial agglomeration," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 167-200, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kawasaki, Akio, 2008. "Network effects, heterogeneous time value and network formation in the airline market," Regional Science and Urban Economics, Elsevier, vol. 38(4), pages 388-403, July.
    2. Tapia, Rodrigo Javier & dos Santos Senna, Luiz Afonso & Larranaga, Ana Margarita & Cybis, Helena Beatriz Bettella, 2019. "Joint mode and port choice for soy production in Buenos Aires province, Argentina," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 121(C), pages 100-118.
    3. Wang, Chunan & Wang, Xiaoyu, 2019. "Airport congestion delays and airline networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 328-349.
    4. Froeb, Luke & Tschantz, Steven & Crooke, Philip, 2003. "Bertrand competition with capacity constraints: mergers among parking lots," Journal of Econometrics, Elsevier, vol. 113(1), pages 49-67, March.
    5. Aguirregabiria, Victor & Ho, Chun-Yu, 2012. "A dynamic oligopoly game of the US airline industry: Estimation and policy experiments," Journal of Econometrics, Elsevier, vol. 168(1), pages 156-173.
    6. Vega, Laura & Cantillo, Víctor & Arellana, Julián, 2019. "Assessing the impact of major infrastructure projects on port choice decision: The Colombian case," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 132-148.
    7. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    8. Peter Haan, "undated". "Conditional logit versus random coefficient models: An analysis using GLLAMM," German Stata Users' Group Meetings 2004 7, Stata Users Group.
    9. Kalouptsidis, N. & Psaraki, V., 2010. "Approximations of choice probabilities in mixed logit models," European Journal of Operational Research, Elsevier, vol. 200(2), pages 529-535, January.
    10. Timothy J. Richards & Paul M. Patterson & Abebayehu Tegene, 2007. "Obesity And Nutrient Consumption: A Rational Addiction?," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 309-324, July.
    11. Mark D. Agee, 2020. "Classroom management, persistent bullying, and teacher practices in a discrete choice model of habit formation," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 4(1), pages 5-16, December.
    12. Jörg Rieskamp & Jerome R. Busemeyer & Barbara A. Mellers, 2006. "Extending the Bounds of Rationality: Evidence and Theories of Preferential Choice," Journal of Economic Literature, American Economic Association, vol. 44(3), pages 631-661, September.
    13. Useche, Pilar & Barham, Bradford & Foltz, Jeremy, 2006. "A Trait Specific Model of GM Crop Adoption by Minnesota and Wisconsin Corn Farmers," Working Papers 201525, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    14. Anming Zhang & Yimin Zhang & Joseph A. Clougherty, 2011. "Competition and Regulation in Air Transport," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 35, Edward Elgar Publishing.
    15. Lin, Ming Hsin, 2012. "Airlines-within-airlines strategies and existence of low-cost carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 637-651.
    16. Yanhao Wei, 2018. "Airline networks, traffic densities, and value of links," Quantitative Marketing and Economics (QME), Springer, vol. 16(3), pages 341-370, September.
    17. Driscoll, Áine & Lyons, Seán & Mariuzzo, Franco & Tol, Richard S.J., 2013. "Simulating demand for electric vehicles using revealed preference data," Energy Policy, Elsevier, vol. 62(C), pages 686-696.
    18. Davis, Peter, 2000. "Empirical models of demand for differentiated products," European Economic Review, Elsevier, vol. 44(4-6), pages 993-1005, May.
    19. Peter Haan, 2004. "Discrete Choice Labor Supply: Conditional Logit vs. Random Coefficient Models," Discussion Papers of DIW Berlin 394, DIW Berlin, German Institute for Economic Research.
    20. Useche, Pilar & Barham, Bradford L. & Foltz, Jeremy D., 2005. "A Trait Specific Model of GM Crop Adoption among U.S. Corn Farmers in the Upper Midwest," 2005 Annual meeting, July 24-27, Providence, RI 19202, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:11:y:2005:i:3:p:149-159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.