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Freight Demand Management and the Potential of Receiver-Led Consolidation programs

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  • Holguín-Veras, José
  • Sánchez-Díaz, Iván

Abstract

The paper defines the field of Freight Demand Management (FDM), and positions it as an important component of transportation policy and management. To establish the rationale for FDM, the paper studies the effects of the agent interactions at the core of supply chains, and identifies the important role played by the receivers of supplies in determining when and how deliveries are made. The paper classifies the various modalities of FDM, and summarizes the real-life experiences of their implementation. To illustrate the potential of FDM, the paper analyzes Receiver-Led Consolidation (RLC) programs. The paper provides background on consolidation programs, and estimates a behavioral model to shed light on the factors explaining receivers’ interest in cargo consolidation. The resulting model is used to estimate expected participation in a RLC program in New York City. These results are complemented with freight-trip generation analyses, and a behavioral micro-simulation to estimate potential reductions in freight traffic and vehicle-miles-traveled. The results show that RLC programs could bring significant benefits to large metropolitan areas, reducing freight vehicle-miles-traveled and congestion levels.

Suggested Citation

  • Holguín-Veras, José & Sánchez-Díaz, Iván, 2016. "Freight Demand Management and the Potential of Receiver-Led Consolidation programs," Transportation Research Part A: Policy and Practice, Elsevier, vol. 84(C), pages 109-130.
    • Handle: RePEc:eee:transa:v:84:y:2016:i:c:p:109-130
    DOI: 10.1016/j.tra.2015.06.013
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    References listed on IDEAS

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    1. Holgui­n-Veras, José & Wang, Qian & Xu, Ning & Ozbay, Kaan & Cetin, Mecit & Polimeni, John, 2006. "The impacts of time of day pricing on the behavior of freight carriers in a congested urban area: Implications to road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(9), pages 744-766, November.
    2. José Holguín-Veras & Michael Silas & John Polimeni & Brenda Cruz, 2008. "An Investigation on the Effectiveness of Joint Receiver–Carrier Policies to Increase Truck Traffic in the Off-peak Hours," Networks and Spatial Economics, Springer, vol. 8(4), pages 327-354, December.
    3. Holgun-Veras, Jos & Cetin, Mecit, 2009. "Optimal tolls for multi-class traffic: Analytical formulations and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 445-467, May.
    4. Laurence S. Moss, 2003. "Editor's Introduction," American Journal of Economics and Sociology, Wiley Blackwell, vol. 62(2), pages 315-318, April.
    5. Julian Allen & Michael Browne & Allan Woodburn & Jacques Leonardi, 2012. "The Role of Urban Consolidation Centres in Sustainable Freight Transport," Transport Reviews, Taylor & Francis Journals, vol. 32(4), pages 473-490, April.
    6. Amelia Regan & Thomas Golob, 2005. "Trucking industry demand for urban shared use freight terminals," Transportation, Springer, vol. 32(1), pages 23-36, January.
    7. Jose Holguín-Veras & Ning Xu & Gerard Jong & Hedi Maurer, 2011. "An Experimental Economics Investigation of Shipper-carrier Interactions in the Choice of Mode and Shipment Size in Freight Transport," Networks and Spatial Economics, Springer, vol. 11(3), pages 509-532, September.
    8. Holguín-Veras, José & Aros-Vera, Felipe & Browne, Michael, 2015. "Agent interactions and the response of supply chains to pricing and incentives," Economics of Transportation, Elsevier, vol. 4(3), pages 147-155.
    9. Editors, 2003. "Editor's Introduction," American Journal of Economics and Sociology, Wiley Blackwell, vol. 62(4), pages 645-648, October.
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