Abstract

This study investigated the influence of the time upper threshold on the choice behavior of shippers. The time upper threshold is the longest hinterland leg transportation chain time that can be accepted by a shipper. Based on D-efficient design, data were collected from a freight corridor between a hinterland container terminal and a seaport in China. Model estimation results implied that exogenous threshold models are more realistic as they distinguish preference differences of shippers. Share simulation indicates that railroad share will sharply increase when time reduces and approaches a threshold; furthermore, only when the reduction of railroad transportation chain time exceeds 35%, reducing cost or time fluctuation will significantly increase its share.

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