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

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  • 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
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    Cited by:

    1. Chow, Joseph Y.J. & Ritchie, Stephen G. & Jeong, Kyungsoo, 2014. "Nonlinear inverse optimization for parameter estimation of commodity-vehicle-decoupled freight assignment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 71-91.
    2. Bianka Dettmer & Andreas Freytag & Peter Draper, 2013. "Check-in, departure and arrival times: Air cargo in Southern Africa?," Jena Economic Research Papers 2013-018, Friedrich-Schiller-University Jena.
    3. Chao, Ching-Cheng & Yu, Po-Cheng, 2013. "Quantitative evaluation model of air cargo competitiveness and comparative analysis of major Asia-Pacific airports," Transport Policy, Elsevier, vol. 30(C), pages 318-326.
    4. Saeed, Naima & Larsen, Odd I., 2010. "An application of cooperative game among container terminals of one port," European Journal of Operational Research, Elsevier, vol. 203(2), pages 393-403, June.
    5. Adenigbo, Joseph Adedotun, 2016. "Factors influencing cargo agents choice of operations in Abuja airport, Nigeria," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 113-119.
    6. Yuan, Xue-Ming & Low, Joyce M.W. & Ching Tang, Loon, 2010. "Roles of the airport and logistics services on the economic outcomes of an air cargo supply chain," International Journal of Production Economics, Elsevier, vol. 127(2), pages 215-225, October.
    7. Jonkeren, Olaf & Jourquin, Bart & Rietveld, Piet, 2011. "Modal-split effects of climate change: The effect of low water levels on the competitive position of inland waterway transport in the river Rhine area," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1007-1019.
    8. Yeo, Gi-Tae & Wang, Ying & Chou, Chien-Chang, 2013. "Evaluating the competitiveness of the aerotropolises in East Asia," Journal of Air Transport Management, Elsevier, vol. 32(C), pages 24-31.
    9. Kim, Joong Yup & Park, Yonghwa, 2012. "Connectivity analysis of transshipments at a cargo hub airport," Journal of Air Transport Management, Elsevier, vol. 18(1), pages 12-15.
    10. Yuen, Andrew & Zhang, Anming & Hui, Yer Van & Leung, Lawrence C. & Fung, Michael, 2017. "Is developing air cargo airports in the hinterland the way of the future?," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 15-25.
    11. Wong, Jinn-Tsai & Chung, Yi-Shih & Hsu, Pi-Yuan, 2016. "Cargo market competition among Asia Pacific's major airports," Journal of Air Transport Management, Elsevier, vol. 56(PB), pages 91-98.
    12. Siew Yean Tham, 2010. "ASEAN Open Skies and the Implications for Airport Development Strategy in Malaysia," Working Papers id:3093, eSocialSciences.
    13. Tham Siew Yean, 2010. "ASEAN Open Skies and the Implications for Airport Development Strategy in Malaysia," Chapters,in: Trade Facilitation and Regional Cooperation in Asia, chapter 2 Edward Elgar Publishing.
    14. Rezaei, Jafar & Hemmes, Alexander & Tavasszy, Lori, 2017. "Multi-criteria decision-making for complex bundling configurations in surface transportation of air freight," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 95-105.

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    Keywords

    Air cargo; Transshipment; Route choice;

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