A Small Shipment Rate Structure and User Attitudes

Abstract

The overall purpose of this article is to encourage all of those involved in the process of making rates for small shipments to examine a different framework within which these shipments may be priced. Our three objectives derived from the purpose are (1) to explain the concept of a proposed rate structure for small shipments; (2) to analyse the attitudes of users toward both the rate structure and toward six significant issues related to small shipments; and (3) to indicate that while the problem may be obscured in some other countries, it is probably as real as it is in the United States. Since the focus is on attitudes of users and not on the structure itself, we provide only enough information to enable the reader to understand the concept of the structure. To reach the objectives, after a brief discussion of the background and perceptions of the problem, the proposal is outlined and results of a simulation using it are discussed. Then, users' attitudes toward both the proposal and the six issues are discussed. Finally, some of the implications of the proposal are outlined.