This study uses a longitudinal cross-sectional database to investigate individual firm strategic changes in the less-than-truckload (LTL) sector of the U.S. Motor Carrier industry. A new method of assessing year-to-year strategic change is developed. Results indicate that strategic change is influenced by both external and internal variables, including the macroeconomic environment, industry turbulence, deregulation, CEO change, firm age, and firm intertia. (C) 1997 Published by Elsevier Science Ltd.
In this study, a theoretical model for the passenger transport demands in Spain is presented. The data is used for the 1980.I-1992.IV quarterly period, and several equations are estimated for the different modes of transport: railway (Talgo), railway (long distance); road and air transport. Cointegration techniques, which are subject to a wide range of contrasts, are used to obtain short and long term equations. The product, price and cross-elasticities of each mode of transport are obtained. These estimations may be used to analyse the effects of transport tariffs on income changes, as well as to predict short- and long-term traffics.
Per capita income, country size, and economic growth are often seen as being major determinants of rail track expansion in developing countries. However, we could not empirically verify these explanations for rail expansion using recent World Bank data for a set of 35 developing countries. Instead, a factor analysis suggested multilateral loans to have been important. A discriminant analysis indicated only four variables are needed to predict a country's correct grouping into either a high and low rail expansion group. Regression analysis indicates that 1970s investment offset 1980s investment for the entire sample and the high expansion group. For the low expansion group, a factor capturing the quality of life appears to be the most important predictor of rail investment.
This paper undertakes two tasks: measurement of seaport infrastructure productivity growth in North America from 1984 to 1997, and exploration of several theorized causal relationships between infrastructure productivity and industry structure and conduct. A methodology is presented, data envelopment analysis (DEA), for measuring infrastructure productivity. Tobit regression is presented as a means of examining the determinants of infrastructure productivity in seaports. The study supports the presence of economies of scale at the containerport and terminal level. Among other factors, the longstanding relationship between seaports and the rail industry appears to remain a critical determinant of containerport infrastructure productivity.
This paper reports a study of the patterns of productivity changes in 25 regional airports in China during the period 1995-2004. We found the average annual growth in airport productivity to be above 3%. By the decomposition of the Malmquist index, we identified the major source of productivity growth to be technical progress, rather than an improvement in efficiency. The kernel smoothing method revealed a trend of disparate productivity among the airports that was due to the polarization of efficiency. Our results imply that reform policies should focus on non-hub airports, non-listed airports, and airports in the northeast region if more balanced development is to be achieved.
This paper provides a partial summary of the 2003 ATRS (Air Transport Research Society) Global Airport Benchmarking Report which uses the annual data for 2000-2001. The objective of the ATRS benchmarking report is to measure and compare the performance of several important aspects of airport management and operation: productivity and efficiency, unit costs and cost competitiveness, financial results. The report also examines the relationships between various performance measures and airport characteristics in order to better understand the observed differences in airport performance. This particular paper extracted from the benchmarking report focuses on measuring and comparing operating efficiency performance of the world's major airports. In particular, the paper presents the results on the airports' Variable Factor Productivities (VFP) after removing the effects of the variables beyond managerial control. In the process, it identifies the effects of various factors influencing airport's VFP, and computes a 'residual' VFP index as an indicator for airports' operations efficiency.
This study explores the economic mechanisms behind the decline of a surface transportation network, based on the assumption that the decline phase is a spontaneous process driven by decentralized decisions of individual travelers and privatized links. A simulation model is developed with a degeneration process by which the weakest link is removed iteratively from the network. Experiments reveal how the economic efficiency of a network evolves during the degeneration process and suggest an “optimal” degenerated network could be derived during the decline phase in terms of maximizing total social welfare.
This paper examines, in the context of outsourcing, the effects of improving the performance indicators of a client to the services offered by a 3PL provider. A research model has been developed and four research hypotheses are analyzed empirically using multiple regression analysis. The results point out that there is a positive influence in the performance indicators for clients who are in association with a 3PL provider. It is proved that the clients distinguish a 3PL provider as providing them with a potential pathway to a more innovative business model. The theoretical, managerial and research implications are also highlighted.
This paper enhances a trial-and-error implementation scheme of marginal-cost pricing on a transportation network, in the absence of explicit expression of the demand function. Link tolls and link flows are updated for the next trial with the revealed link flows for given current trial toll pattern. The method is quite simple, requiring only some function evaluations. Also, the step size is not required to be square summable, thereby leading to the improvement of the efficiency of the algorithm. The global convergence of the method is proved and some numerical results are reported to illustrate its performance.
To improve airport ground access at Taoyouan International Airport (TIA) in Taiwan, the government of Taiwan is constructing a mass rapid transit system (TIA MRT) to connect the airport and important traffic hubs such as the Taipei train station and the Taoyouan High Speed Rail station. Using revealed and stated preference data, we investigate the airport ground access mode choice behavior of air passengers who are traveling overseas from Taiwan. A mixed logit model is estimated to identify the preferences of air passengers for the new mode. The results indicate that while out-of-vehicle travel time and in-vehicle travel time are two important factors in affecting outbound travelers' choice of airport access mode, the amount of overall time-savings and the user-friendly nature of the modal offers are also crucial attributes. We show the extent to which travel time improvements associated with public transportation reduces the market share of private transportation and taxi.
This paper studies the management of a fleet of trucks providing container pickup and delivery service (drayage) to a port with an appointment-based access control system. Responding to growing access congestion and its resultant impacts, many US port terminals have implemented appointment systems, but little is known about the potential impact of such systems on drayage fleet efficiency. To address this knowledge gap, we develop a drayage operations planning approach based on an integer programming heuristic that explicitly models a port access control system. The approach determines pickup and delivery sequences for daily drayage operations with minimum transportation cost. We use the framework to develop an understanding of the potential productivity impacts of access control systems on drayage firms. Most importantly, we find that it is critical for terminal operators to provide enough access capacity for drayage, since vehicle productivity can be increased by 10–24% when total access capacity is increased by 30%. Furthermore, poor (but not unreasonable) selection of access appointment time slots by drayage firms may result in substantial customer service deficiencies, reducing the number of customers that can be served by up to 4% for a fixed level of total access capacity.
Although there have been various studies on macro-economic effect of public investment, not much attention has been paid to the impact of actual accessibility realized by transport industry and infrastructure. In this paper, we performed a cross-sectional analysis of 47 prefectures in Japan between 1995 and 2000 by Cobb-Douglas production function and growth regression approach. The results explain why deregulation and infrastructure development in air transport during 1990s manifest mixed results of inter-regional accessibility and per-capita GDP growth for core and peripheral areas in Japan.
This paper investigates port traffic risk issues by discussing historic accidents in Hong Kong port. A total of 2012 marine accidents with 94 deaths were reported in Hong Kong waters in year 2001–2005, while 660,427 oceanic ships visited the port. A negative binomial regression model is used to analyze the record of dataset. It is found that port traffic risks are of certain pattern and collision accidents are the most popular incidents when port traffic is heavy. Passenger-type vessels have higher potential for injuries during accidents. The findings have identified statistically significant factors for improvements in managing port traffic risks.
This paper examines the determinants of truck accidents in the United States using a time series data set covering the period 1970-2001. Along with other factors, the effect of the Motor Carrier Act of 1980, which deregulated the trucking industry, is examined for its impact on truck accidents. In addition, the model accounts for the effect railroad freight mileage has on truck accidents. Empirically, alcohol consumption, the unemployment rate, and railroad activity were found to have significant effects on truck accidents while deregulation of the trucking industry did not have a statistically significant adverse effect on these accidents.
This paper analyses entry deterrence and accommodation by low cost carriers (LCCs) with two games. In the first game two LCCs compete in a horizontal differentiation setting. Results show that the entrant may drive away the incumbent from its original location under certain conditions. In the second game the incumbent is a LCC and the entrant a full service carrier, with vertical differentiation. The incumbent tries to deter or accommodate entry by product proliferation. We find out that the incumbent will only deter entry if it can surpass the entrant's quality, and that product proliferation is not an accommodating strategy.
This paper analyses various dimensions of operational efficiencies in major Asia Pacific airports through Data Envelopment Analysis (DEA) models that simultaneously account for external macroeconomics and price factors. Results from this study show that technical, scale and mix efficiencies are high among the major Asia Pacific airports. In addition, significant disparities in cost efficiencies were detected amongst these airports. These disparities can be attributed to the presence of country-specific effect and differences in allocative efficiencies. A virtual airport is then introduced as a superior performer to rank the efficiency performances of airports.
Analysis of the demand for inter-urban rail travel has received little attention in contrast to the large number of studies on urban travel demand. The studies on inter-urban rail demand usually emphasise the effects of monetary costs. Occasionally, changes in rail travel time are considered. However, the central aspect in our study is the impact of changes in road travel time on the demand for rail. This paper specifies and empirically estimates, an explanatory model to evaluate the impact of travel time changes on inter-urban rail demand. The change in rail passenger traffic between two periods on various routes is compared to the change in travel times on these routes. That is, it is a model estimated on the change in cross-section traffic volumes between the two periods. The empirical analysis confirms the explanatory power of changes in the intermodal structure of travel times, and shows the need to introduce the impact of these changes when studying the demand for inter-urban travel.
The railroad industry was substantially deregulated by the Staggers Act in 1980. While railroad rates, as measured by industry-wide revenue per ton-mile, declined since that time, it is unclear why rates declined. Changes in commodity mix, length of haul, shipment size, lading weight, equipment ownership, railroad costs, competition from other modes, and demand for railroad transportation have all played some role. This paper assesses the importance of each of these factors in explaining the decline in railroad rates since the Staggers Act. After controlling for changes in commodity mix, the analysis indicates that shippers received nearly $28 billion per year in rate reductions as a result of changes that took place between 1982 and 1996. The reduction in productivity-adjusted railroad costs explains almost 90% of the reduction in railroad rates, with other factors playing much lesser roles.
This paper analyzes the influence of highway safety regulation enforcement efforts on motor vehicle fatalities. It estimates a regression model in which such deaths depend on these efforts as well as economic conditions, driver characteristics, government regulations, and locational factors, using 1973–2000 annual Ohio data. Statistically significant results indicate that the enforcement measure of drunk driving arrests saves lives. They also suggest that highway deaths increase with the following: better economic conditions, greater alcohol consumption, larger proportions of young and old drivers, higher speed limits, and more driving on rural roads. The trend in deaths is downward.
This study examines the relationships among commercial revenue, passenger service level and space allocation in international passenger terminals. Using mathematical programming, this study constructs a model for maximizing concession revenues while maintaining service level, to optimize the space allocation for various types of stores. This study then uses CKS International Airport as an example to demonstrate the applicability of the models. The results show that total commercial revenues can be maximized by locating the stores with more concession revenue in the more accessible positions. Moreover, the optimal space allocation for commercial activities and public facilities changes with passenger volumes and/or service levels.
This paper uses seemingly unrelated regression analysis and annual Ohio data for 1975–2000 to estimate a model for six different types of motor vehicle fatalities: car occupants, light truck occupants, large truck occupants, motorcyclists, pedestrians, and pedalcyclists. It finds that while certain government highway safety regulations (e.g., speed limits) and enforcement activities (e.g., drunk driving arrests) have life-saving effects, not all groups are beneficiaries.
Following the 9/11 terrorist incidence, most countries introduced security charges on air travel, mostly in the form of flat rate per passenger. However, it is clear that such flat rate per passenger may not be socially optimal as implied by previous studies on airport pricing including those utilizing Ramsey pricing. Thus, an alternative pricing scheme may enhance social welfare. In this paper, recognizing the competitive reality of today's airline markets we formulate and solve numerically a differentiated duopoly model in order to compare welfare implications of adopting the two most convenient forms of aviation security pricing: (1) charging a flat rate per passenger; and (2) charging Ad Valorem user fees. Since obtaining meaningful analytical results requires unrealistically restrictive assumptions, we designed a numerical experiment and conducted over 5000 simulations using a wide range of possible values of firms' conduct parameters, extent of product differentiation, and market share split between full service airline (FSA) and low cost carrier (LCC). Our results show that Ad Valorem user fee is superior to the current policy of charging flat rate security fee in all cases except for very few unrealistic cases. The same conclusion can be directly applied to all other per-passenger fees or taxes being collected by governments and/or airports. This is an important finding given that taxes and user charges now account for up to 30% of the total ticket prices of short distance domestic travel in US.
In this research, continuous and dynamic Berth Allocation Problem (BAP) is studied to minimize the total weighted flow time. Different from previous studies on continuous BAP, an efficient method is proposed to address the problem to identify the possible locations for next vessel in the Time-space diagram. Then two versions of Greedy Randomized Adaptive Search Procedure (GRASP) are developed to search for near optimal solutions. Both small and large scale numerical experiments are tested to examine the effectiveness of the proposed GRASPs by comparison with CPLEX and stochastic beam search, respectively.
This paper studies the heterogeneous fixed fleet vehicle routing problem (HFFVRP), in which the fleet is composed of a fixed number of vehicles with different capacities, fixed costs, and variable costs. Given the fleet composition, the HFFVRP is to determine a vehicle scheduling strategy with the objective of minimizing the total transportation cost. We propose a multistart adaptive memory programming (MAMP) and path relinking algorithm to solve this problem. Through the search memory, MAMP at each iteration constructs multiple provisional solutions, which are further improved by a modified tabu search. As an intensification strategy, path relinking is integrated to enhance the performance of MAMP. We conduct a series of experiments to evaluate and demonstrate the effectiveness of the proposed algorithm.
This paper presents empirical results of determinants of mode choice for freight services in India. The Leeds Adaptive Stated Preference software was used for the main survey on the Delhi to Bombay corridor. The empirical results show that frequency of service is an important attribute determining mode choice. Valuation of reliability is generally lower than expected. Value of time is quite similar across different product segments. The results further suggest that intermodal services can be viable for high value and finished goods.
The Herfindahl-Hirschman index (HHI) is a well known concentration measure, which is both widely used and widely criticized. The main shortcoming of the HHI is its sensitivity for the relevant market definition, in terms of both geographical boundaries and in terms of product homogeneity. In this paper we develop an adjusted version of the HHI that accounts for close substitutes. We test the adjusted HHI empirically for civil aviation, using airfare data. Our results suggest that the adjusted index generates better results than the traditional indicator.
Integration of supply chain activities and the technologies to accomplish it have become competitive necessities in most industries. Accordingly, the trend toward greater use of supply chain technologies is on a clear path forward. As one manager has noted: “With almost daily technology advancement globally in every facet of the business, organizations need to synchronize by adopting and implementing new electronic commerce and supply chain technology in order to protect market share, not to mention improve market penetration”. This paper develops a model of the key factors influencing the adoption of supply chain technology. The following set of variables were hypothesized to have a significant impact upon the pace of technology adoption: firm size, organizational structure, integration of supply chain strategy with overall corporate strategy, past financial performance, supply chain partner pressure, transaction climate and environmental uncertainty. The model provides a better understanding of the supply chain technology diffusion process. The paper also includes a survey, which has been developed to test the model.
This study empirically examines the determinants of adoption of Vendor Managed Inventory programs that have recently gained popularity in many industries. To achieve this goal, survey scales are adapted and developed for buyer and supplier market competitiveness, product demand, buyer operational uncertainty, and buyer-supplier cooperation. Based on the analysis of responses from purchasing managers in three industries, structural equation modeling results suggest that the competitiveness of the supplier's market and buyer-supplier cooperation are positively associated with VMI adoption, while operational uncertainty for the buyer is negatively associated with VMI adoption. Managerial implications and limitations of the study are also noted.
Unlike traditional retailers, which use inventory speculation for all their merchandise, Internet book retailers selectively use inventory postponement for specific merchandise items to lower their inventory costs. We develop and test hypotheses that describe merchandise determinants of inventory postponement and speculation at two oligopolistic retailers: Amazon.com and Barnesandnoble.com. We find that merchandise popularity raises both firms’ likelihood of inventory speculation. Furthermore, merchandise vintage affects negatively both firms’ likelihood of inventory speculation. Merchandise price affects negatively the likelihood of inventory speculation for Amazon.com and positively for Barnesandnoble.com. This may be due to conditions within Barnesandnoble.com, which operates physical and Internet channels.
This study contributes to the online auction literature by empirically examining the differences across three groups (current users, past users, and nonusers) in terms of their emphasis on supplier collaboration, cost management, and sales revenue and profit enhancement. The paper further compares the online auction usages for maintenance/repair/operations and shipping and transportation services across high and low groups in supplier collaboration and cost management. A survey of supply chain professionals coupled with appropriate statistical analysis was employed to investigate adoption and utilization of online auctions. Study findings indicate significant differences between users and nonusers. Study findings specifically indicate that current online auction users have a greater belief in the auctions as a cost containment tool than past or nonusers. It was also found that nonusers place a greater level of importance on supplier collaboration and sales revenue and profit enhancement than either current or past users.
The adoption of inventory management practices and their relationship with the enterprise-wide adoption of information systems are empirically evaluated. Univariate and multivariate statistical analyses of survey responses indicate a strong enterprise-wide emphasis on materials requirements planning (MRP)- and just-in-time (JIT)-based inventory management systems as well as a continued relevancy of the economic order quantity model. Furthermore, the investigation suggests a positive correspondence between enterprise-wide information systems and MRP adoption and a negative correspondence between enterprise-wide information systems and JIT adoption.
In this paper, we investigate the organizational determinants of safety technology adoption. To shed light on this important question, we develop and test nine hypotheses. Results are based on a national survey of motor carriers sponsored by the United States Department of Transportation. Using a Poisson regression model, we find statistical support for seven hypotheses. A key finding is that prior safety performance influences a firm’s adoption of safety technologies. Additionally, a firm’s optimism about the potential for safety technologies, its technological innovativeness, and its level of comfort with new technologies contribute to its safety technology adoption decisions.
We present an optimization-based computational study to quantify the relative benefits and costs of sharing advance load information and preparing an advance pick-up and delivery plan (or preplanning) in load assignment problems in truckload trucking. Considering that the benefits of preplanning comes in many intangible forms, we take the strategy of showing the cost differences between preplanning and different forms of dispatching, instead of computing the benefits directly. Computational study under several settings not only shows the benefit of using advanced load information, but also uncovers the minimal cost difference between intelligent preplanning and the best performing dispatching policies.
Choosing a suitable advanced quay crane (Q/C) is a complex problem for terminal operators because numerous factors must be considered simultaneously. A two-phased method is developed in this study to deal with this problem. The first phase identifies the determinants influencing selection of advanced Q/Cs by applying exploratory factor analysis (EFA) and thereby constructs a hierarchical structure. The second phase applies fuzzy analytic hierarchy process (AHP) to compare alternatives in terms of the structure established in the first phase. The case of the newest terminal at Kaohsiung port is studied empirically and the 40-foot twin-lift Q/C is chosen as the most suitable alternative.
The literature on container port efficiency has typically centered on ports in advanced markets or comparisons within regions. This study compares the efficiency of port operations in emerging markets (BRIC and the Next-11) with the more advanced markets (G7). We use data envelopment analysis to evaluate the container ports based on the import and export cargo volumes in 2005. Our results suggest that none of the ports in the advanced markets are role models for the field. This study provides a first step towards gaining insights into port efficiency in emerging markets.
This paper quantifies how real-time access to information on the arrival status of packages consigned from overseas for subsequent truck transportation can contribute to the efficiency of international couriers' ground delivery operations. The contribution is quantified by determining the eliminable ground transportation costs of next-best tactics that partially compensate for deficiencies in package arrival information. Next-best tactics include forecasting each package's arrival status and adjusting ground delivery routes when actual arrival information becomes known. The study shows that the contribution can be significant, reaching hundreds of dollars per day. The study also finds that tactics using forecasts, even highly accurate forecasts, are not always the most effective next-best tactics.
This note explores the extent to which airlines operating large hub-and-spoke networks secure a competitive advantage. More specifically, this paper explores the intricate relationship which arises among productive efficiencies and profitability when the size of the hub-and-spoke network expands. To this end, Brueckner and Spiller (1991, International Journal of Industrial Organization 9, 323–342) airline economics model is generalized by allowing the size of the hub-and-spoke network to vary. The central result shows that, although the model exhibits decreasing returns to firm/network size (RTNS), nonetheless there is a competitive advantage to increasing the size of a network.
This paper empirically investigates price reactions to the entry of the low-cost carrier Gol Airlines in the Brazilian domestic market in 2001. Given the substantial reduction in unconditional yields of the incumbent airlines on routes actually entered by Gol, we perform an econometric analysis of the determinants of pricing power along with the analysis of the pattern of price reactions by incumbent legacy carriers. Using data from a panel of routes disaggregated at the airline level, we obtain that (i) both airport and route presence are relevant at explaining pricing behavior; (ii) price responses vary significantly according to flight distance and the amount of seats supplied by the entrant, in the sense that the shorter the route, and the more the seats offered by the newcomer, the stronger the price reactions from the incumbents, with significant point estimates in the range 22-26% in yield reduction for routes as short as 350Â km (approx. 195 miles). More generally, the results shed light on the impacts of airline deregulation in emerging markets and the issue of localized competitive advantage due to product differentiation in the industry.
This paper presents a formal model of traveler compliance with different types of advice (or guidance, prescriptive information) based on the premises of Bayesian expected utility decision-making. The developed model explains a traveler’s propensity to comply with received advice in terms of the interaction between his preferences for different travel alternatives, relative importance attached to travel times, perceived travel time uncertainty and perceived unreliability of the information. Following the presentation of the model, we illustrate its workings by means of numerical simulations.
We develop an aerodynamic loading assignment model for intermodal freight trains based on an integer-programming framework to help terminal managers make up more fuel-efficient trains. This is the first use of optimization modeling to address the aerodynamics and energy efficiency of railroad intermodal trains. Several recommendations regarding railway equipment use, operations, and policy are proposed to improve fuel-efficiency and reduce emissions from intermodal transportation. Analysis of one major railroad intermodal route reveals the potential to reduce fuel consumption by 15 million gallons per year with corresponding savings of $28,000,000. Greater benefits are possible through broader implementation of the model.
This paper investigates factors that can explain the dynamics of yield premia on seasoned high yield bonds of shipping companies. Our analysis utilises 40 seasoned high yield bonds offered by 32 shipping companies between April 1998 and December 2002 and a set of microeconomic, macroeconomic and, industry related factors. Our model suggests that the dynamics of credit premia of seasoned shipping high yield bonds can be explained by: credit rating; term-to-maturity; changes in earnings in the shipping market, as well as in the yield on 10-year Treasury bonds; and the yield on the Merrill Lynch single-B index.
This article analyzes the struggle between traditional travel agencies and airlines to gain control of the Spanish airline services market. Also analyzed is the strong emergence of a third player, online travel portals that act as online travel agencies. We use a multinomial logit model to study the influence of 27 socio-economic factors and trip attributes on passenger purchase channel choice. The results show that the profile of a passenger who has a greater likelihood of making his/her bookings online is that of a young person, a student or educated to a high level, a habitual traveler, booking a simple journey and using an LCC. The factors linked to an increased likelihood of making purchases by phone include: being male, middle-aged, on a business or short trip, and the passengers usually use a travel agency. Finally, passengers who are over 65 years of age, with a lower academic level, who use a travel agency and are going to make a more complicated journey, are more likely to purchase their tickets in-store.