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Estimating the impact of transport costs on firms’ choice of transport chain and shipment size

Author

Listed:
  • Odolinski, Kristofer

    (Swedish National Road and Transport Research Institute (VTI))

  • Ek, Karin

    (Swedish National Road and Transport Research Institute (VTI))

Abstract

Multinomial logit models of firms’ choice of transport chain and shipment size are estimated for 16 commodity groups. The estimations are based on the Swedish Commodity Flow Survey (CFS) for 2016 and 2021 with choice data for individual shipments. The CFS is combined with cost and transport time data from the Swedish national freight transport model, Samgods, in order to estimate the impact of transport costs on firms’ transport chain and shipment size choice. Empirical midpoints of shipment sizes are included in the estimations such that the impact of ordering cost and holding cost are considered, which influences the transport cost estimates. Overall, results show that transport costs have a statistically significant impact on firm’s choice of transport, and the impact varies with respect to commodity group.

Suggested Citation

  • Odolinski, Kristofer & Ek, Karin, 2024. "Estimating the impact of transport costs on firms’ choice of transport chain and shipment size," Working Papers 2024:5, Swedish National Road & Transport Research Institute (VTI).
    • Handle: RePEc:hhs:vtiwps:2024_005
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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