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Precautionary and operative costs of freight train delays: a case study of a Swedish grocery company

There is limited knowledge about the valuation of reduced transport time variability for freight transports. This paper analyses a Swedish grocery company’s transports by shuttle train, as a case study. The distribution of the train arrival time is analyzed; it is shown that the 10 per cent worst delays contribute to more than half of the total train delays. Type and amount of the firm’s precautionary and operative costs are identified and calculated. It is shown that it is possible to get estimates for the cargo component of the VTTV (Value of Transport Time Variability) valid for the specific company based on the precautionary costs, the operative costs for delays and for the costs for cancellations separately or in combination. Further case studies are advocated in order to cover the whole freight transport market and study the differences between different segments of the market.

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Paper provided by CTS - Centre for Transport Studies Stockholm (KTH and VTI) in its series Working papers in Transport Economics with number 2014:3.

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Length: 20 pages
Date of creation: 26 Feb 2014
Date of revision:
Handle: RePEc:hhs:ctswps:2014_003
Note: Published in: European Transport Research Review, Vol. 7, Issue 1, March 2015.
Contact details of provider: Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
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