Decrease In Transport Costs Research Articles

The Influence of Shallow Waters on the Maneuvering of Large Ships

The increasing demand for goods that can be transported by sea and the reduction in transportation costs have led to a trend toward larger ships. The increase in ship capacity leads to an increase in ship length and, thus, a decrease in transportation costs. The maneuverability of large ships in shallow water when calling at ports is becoming increasingly difficult. This is due to the discrepancy between increasing ship dimensions and unchanged waterway structures such as approach channels, harbors, and ports. The maneuverability of a vessel in shallow waters is different from the maneuverability in deep waters. The reasons for this are due to the shallow water effect. Shallow water affects the maneuverability of ships due to hydrodynamic forces caused by the current, shallower depth under the keel and proximity to the shore. It is a major challenge both for shipbuilders to design such vessels and for shipowners to have trained and well-educated officers who can navigate large vessels in shallow waters. This article presents the effects of shallow waters on large ship maneuvering and mathematical models that have been used to predict ship behavior under the influence of these forces.

Prospects for the Development of Transport in Poland during the Energy Crisis

Recent years have been times of crisis triggered by the Covid-19 pandemic and the Russian attack on Ukraine. Energy markets have seen dynamic increases in commodity prices, which have continued to this day. The prices of oil, whose rise fuels inflation are particularly important for the world economy. The paper presents an overview and per- prospects for the development of transport in Poland during the energy crisis and the Covid-19 pandemic. The analysis carried out on the example of Poland clearly shows that in the near term there is no chance to reduce fuel prices in Poland, which would result in a decrease in transport costs. It seems that the only chance for companies to reduce transport costs is to change their supply and inventory management strategies to take advantage of economies of scale and maintain high inventory levels. On the other hand, in world markets, oil prices will fall only if the war in Ukraine finishes.

Will Cross-Border Logistics Performance Contribute to Export Competitiveness

This paper investigates the economic relationship between logistics performance (LP) and export competitiveness (EC) based on the iceberg transport costs theory and conducts further empirical analysis according to China's logistics performance index (LPI). It finds that the higher the efficiency of logistics and transport, the lower the transportation costs coefficient per unit distance; when logistics and transportation costs decrease, domestic goods demand of foreigners increases, and so does the export value expressed in domestic prices. Additionally, Spearman's rank correlation method is used to analyze the relationship between LPI and export level (EXP), indicating that LPI has a positive rank correlation with the EXP at a significant level of 1%. This research confirms the positive correlation between LP and EC and proposes specific solutions to enhancing the logistics capability in other developing countries.

The ripple effects of large‐scale transport infrastructure investment

AbstractWe analyze the general equilibrium effects of an asymmetric decrease in transport costs, combining a large‐scale spatial dynamic general equilibrium model for 267 European NUTS‐2 regions with a detailed transport model at the level of individual road segments. As a case study, we consider the impact of the road infrastructure investments in Central and Eastern Europe of the European Cohesion Policy. Our analysis suggests that the decrease in transportation costs benefits the targeted regions via substantial increases in gross domestic product (GDP) and welfare compared to the baseline, and a small increase in population. The geographic information embedded in the transport model leads to relatively large predicted benefits in peripheral countries such as Greece and Finland, which hardly receive funds, but whose trade links cross Central and Eastern Europe, generating profit from the investments there. The richer, Western European nontargeted regions also enjoy a higher GDP after the investment in the East, but these effects are smaller. Thus, the policy reduces interregional disparities. There are rippled patterns in the predicted policy spillovers. In nontargeted countries, regions trading more intensely with regions where the investment is taking place on average benefit more compared to other regions within the same country, but also compared to neighboring regions across an international border. We uncover that regions importing goods from Central and Eastern Europe enjoy the largest spillovers. These regions become more competitive and expand exports, to the detriment of other regions in the same country.

National integration and institution building

AbstractThe mutual dependence between national integration and institution building is established in a formal model. It is shown that a decrease in transportation costs, but not necessarily an increase in population size, reduces the equilibrium number of states and the adoption of rule‐based institutions. With endogenous transportation costs or endogenous population size, the unification process can feed on itself. The model is illustrated by the state of Qin's unification of China in 221 BC. During this process of national integration, transformations from relation‐based governance to rule‐based governance happened.

Does Cross-Border Logistics Performance Contribute to Export Competitiveness? Evidence from China Based on the Iceberg Transport Cost Model

This paper investigates the economic relationship between logistics performance and export competitiveness based on the iceberg transport cost model and conducts further empirical analysis according to China’s LPI. It finds that the higher the efficiency of logistics and transport, the lower the transportation costs coefficient per unit distance; when logistics and transportation costs decrease, foreign demand for domestic goods increases, as does the export value expressed in domestic prices. Additionally, Spearman’s rank correlation method is used to analyze the relationship between logistics performance index and export level, indicating that logistics performance index has a positive rank correlation with the export level at a significant level of 1%. Moreover, a case study on China’ LPI supports the conclusion derived from the theoretical analysis, and conducive countermeasures are put forward. This research confirms the positive correlation between logistics performance and export competitiveness and proposes specific solutions to enhancing the logistics capabilities of other developing countries.

An interregional input–output analysis with the Eaton–Kortum model

This study proposes a multi-regional input–output (I–O) model obtained from comparative statics analysis and a linear approximation of Eaton and Kortum's (2002). [Technology, geography, and trade. Econometrica, 70(5), 1741–1779. https://doi.org/10.1111/ecta.2002.70.issue-5] general equilibrium trade model. The derived reduced form, which represents the effect of a final demand shock, is equivalent to the Leontief inverse, which means that our model is a straightforward extension of the conventional I–O framework. In addition, supply-side shocks, such as a decrease in transport costs, and the corresponding welfare gains are also calculated without setting any structural parameters. The linear reduced forms also enable us to decompose the welfare gains into various ripple channels, such as by sector, region, or the time that the gain arrives. A Japanese multi-regional I–O table is used as a numerical example to derive the effect of a reduction in transport costs (for the links around the northern region). The results indicate that more than half of the welfare gains in the southwest region are delivered through indirect channels, and their time to arrival is more than twice of that in the northern region, which is close to the shock.

ПОВЫШЕНИЕ ЭФФЕКТИВНОСТИ ЦЕПИ ПОСТАВОК С УЧЕТОМ ОПТИМАЛЬНОГО МЕСТОПОЛОЖЕНИЯ РАСПРЕДЕЛИТЕЛЬНОГО ЦЕНТРА

The solution of a logistic problem to improve the efficiency of the supply chain in order to achieve an optimal delivery strategy is presented. The solution involves the use of mathematical methods to determine the location of the distribution center in the service area. The use of an optimal delivery strategy leads to a decrease in storage and transportation costs, which has a positive effect on the competitiveness of an enterprise in modern market conditions

STUDI PEMILIHAN JENIS ALAT ANGKUT BAHAN BAKAR MINYAK WILAYAH KEPULAUAN

Abstrak Supplying fuel oil to the outermost and foremost islands, faced a relatively long distribution chain, especially in the most recent network to consumers on the island, many economic and technical problems. Economically, the people in the outermost islands, the foremost, have small-scale economic dynamics which causes relatively little oil fuel consumption. While technically, infrastructure support in supporting the supply process is very minimal. The fleet of ships as the main means of transporting fuel oil are people's vessels which are designed not specifically to transport liquid cargo. These vessels have relatively small types and dimensions, with very minimal safety equipment. The unavailability of ship dock facilities for loading and unloading so that the loading and unloading process is adequate on the island. Another thing is the geographical conditions of the scattered region and the influence of the weather, high sea waves in certain seasonswhich hinder transport activities. These constraints later caused the process of distribution of fuel oil to not run smoothly and there was a scarcity of inventory, even a vacancy occurred and triggered a surge in prices. The selection of fuel transportation equipment between the Tug-barge, Self Propelled Oil Barge and Tanker using the Analytic Hierarchy Process (AHP) approach, produces tug-barge as the main choice. Furthermore, operational planning is carried out by considering the demand quantity, shipping distance, operating conditions and regional characteristics.Pusher-Barge, which is offered in the Central Maluku Lease Islands, has a relatively high investment value, but there is a significant savings in the operating cost component of 54%, 78% sailing cost and 45,18% decrease in total transport costs per year current system.

Route Selection Decision-Making in an Intermodal Transport Network Using Game Theory

Traveling through a transport network, or ordering and delivering packets, involves fundamental decision-making processes which can be approached by game theory: Rather than simply choosing a route, individuals need to evaluate routes in the presence of the congestion resulting from the decisions made by themselves and everyone else. In this paper, a game theory model for resolving route choices in transport network graphs is used. In the process of doing this, discovering a rather unexpected result known as Braess’s paradox, which shows that adding capacity to a network can sometimes actually cause congestion and an increase in transport costs. The decisions are made by non-cooperative players in a game theory environment known as prisoner’s dilemma. These methods are used to analyze routing problems by competing logistics operators on the transport network consisting of three Eastern Adriatic ports and an intermodal terminal in Budapest. The congestion game can be used in route selection regarding a decrease in transport costs for the carriers who are considered as rational players choosing the most sustainable solution.

Theoretical Comprehension of the Role of Transport in Ensuring Long-Term Economic Development

The objective of the study described in the article is to develop a theoretical basis for assessing the long-term impact of transport on economic development in the context of a consistent decrease in transport costs. At the same time, transport costs are proposed to be considered considering the risks of loss of goods during transportation and violations of delivery times, as well as damage to the goods owner from blocking of the capital embodied in the product during its transportation.Using deductive method in economics, a theoretical model of influence of transport costs on production and sale of goods is proposed, based on which it is concluded that reducing transport costs is a catalyst for economic growth, launching long-term interrelated processes of expanding the geographical area of sales of goods and ensuring growth in volumes, scale, and production efficiency. In contrast, lack of significant progress in development of transport and persistence of high transport costs contribute to conservation of the technical and technological situation and low production efficiency. Based on examples from economic history and modern practices, using methods of statistical analysis and technical and economic calculations, it is shown that the proposed model is consistent with empirical data. Based on the developed model, recommendations were formulated regarding the directions of transport developments desirable for ensuring economic growth. In particular, the need for development of heavy traffic on railways is revealed that will serve to reduce the cost of transportation of relatively inexpensive goods and expand the possibilities for their delivery over long distances, as well as for high-speed transportation for expensive goods that are sensitive to delivery time. Attention is focused on importance of creating an appropriate transport infrastructure and the need to unite the efforts of the state and business for this purpose, contributing to development of transport infrastructure through both institutional instruments and budget investments within the framework of private-public partnership projects.It is concluded that commodity exchange (trade and transport) is a significant factor in economic development, stimulating an increase in production volumes and efficiency. Therefore, economics should not be built «around production» or «around exchange» but proceed from their interaction and the active role of both of these spheres in the process of economic development.

Assessment of the Economic Impacts of Reducing Transportation Costs Based on DSGE Modeling

The article describes the application of the DSGE1-modeling to assess the impacts of transportation investment projects. A decrease in total transportation costs is used as a criterion by which the impact is estimated. They include both direct monetary costs (tariffs) and indirect costs estimated over time.

Improving the Mechanisms to Ensure Economic Security of the Transport System

In the context of transition to an intensive and innovative type of economic development, stable functioning of the transport system is a guarantee of economic growth and maintaining the country’s economic security. The objective of the work is to develop recommendations on ensuring economic security of the transport system based on digitalization. The main research method is an updated indicator method. The author has analyzed the dynamics of indicators of economic security conditions for the period 2000–2019 and concluded that it is currently not exposed to threat. Nevertheless, some indicators tend to decrease, which indicates a possible threat to economic security in the future. The development of the transport system, which leads to an increase in quality of the services provided and a decrease in transportation costs, provides the transport component of national economic security. Constraints that reduce the efficiency of transport act as sectorial threats to economic security. It is proved that for development of the transport system and prevention of threats to economic security, it is necessary to use the opportunities provided by the digitalization. Digitalization should be carried out by creating a single digital space in which subjects and objects of the transport system will interact. It is determined that the public transport regulatory authority has created serious prerequisites for digitalization. Thanks to digitalization, it is possible to reduce costs, increase labor productivity, reliability, and security, obtain grown quality and accessibility of transport services, expand their range, increase openness and transparency of the transport services market. The transition to a qualitatively new level of development of the transport system will contribute to the growth of indicators of the economic security conditions. This digital space should be based on the digital platform of the transport system, which will ensure its regulation and coordination.

ANALISIS MASALAH TRANSHIPMENT MENGGUNAKAN SOFTWARE LINGO DI PT.SBT

Pengaplikasian model transhipment pada transportasi seringkali dijumpai dalam dunia bisnis, entah untuk konsolidasi ataupun membagi produk menjadi beberapa bagian sampai akhirnya dikirim ke tujuan. Kondisi seperti ini terkadang membuat perusahaan mengeluarkan biaya yang cukup besar untuk transportasi serta lead time produk sampai ke konsumen yang lebih panjang sehingga mempengaruhi customer service level, padahal sejatinya perusahaan menginginkan customer service level yang baik serta keuntungan yang maksimum dengan biaya yang minimum. PT. SBT yang merupakan perusahaan yang bergerak dalam bidang pendistribusian barang bangunan ini juga tidak terlepas dari kegiatan transportasi yang menerapkan sistem transhipment dengan kepemilikan 3 gudang sebagai tempat transit, dimana ketiga gudang ini memiliki lokasi yang berbeda-beda sehingga perlu dilakukan penelitian lebih lanjut apakah dengan adanya ketiga gudang tersebut biaya transportasi yang dikeluarkan sudah optimal atau belum. Penelitian dilakukan menggunakan data sekunder dari penelitian terdahulu dengan tujuan membandingkan hasil metode yang digunakan penelitian terdahulu dengan hasil penelitian ini, sehingga dapat memberikan masukan terbaik bagi perusahaan dalam aspek transportasi guna mencapai tujuan perusahaan. Pendekatan yang digunakan dalam menyelesaikan masalah transhipment ini yaitu menggunakan software Lingo yang tentunya dengan harapan memberikan hasil optimal. Hasil penelitian menunjukkan adanya penurunan total biaya transportasi yang awalnya Rp 3.275.000 menjadi Rp 1.413.000 dengan selisih biaya sebesar Rp 1.862.000 atau sebesar 56,85%.

Bezpośrednie inwestycje zagraniczne w Polsce: stan obecny i perspektywy rozwoju

In the process of globalization of national economies, multinational enterprises are now playing an increasingly important role. Along with the growth of the importance of these enterprises, the structure of foreign directinvestment (FDI) is also evolving. So far, the majority of FDI was located in highly developed countries, and these investments were made in human capital intensive industries, the majority of which belonged to the services sector. In recent decades, there has been an increase in FDI inflows to developing and transforming countries. It is related to the liberalization and internationalization of their economies, as well as a significant decrease in transport costs and the costs of doing business across national borders. Over the last three decades, Poland also recorded a significant inflow of FDI, becoming one of important recipients of foreign capital among the new EU Member States (EU). The main purpose of this article is to analyze the last three decades of development of companies with foreign capital in Poland. This paper presents a descriptive analysis of FDI trends in Poland, including the number and size of companies with foreign capital, the source of this capital according to the investor’s country of origin, as well as the sectoral and industry structure of FDI in Poland. The results of this analysis allow, among other things, to identify key regularities related to the FDI made in Poland before and after the EU accession, as well as their reference to new theories of a multinational enterprise.

Evaluation of sustainable manufacturing of pellets combining wastes from olive oil and forestry industries

Use of agroindustrial wastes helps productive processes to have a more sustainable development. In this work, the physical-chemical characteristics of alperujo and orujo residues were studied, demonstrating that both can be combined for pellet production. For this purpose, 12 types of pellets based on different combinations of alperujo, orujo, Pinus radiata and Populus spp. materials were manufactured in the laboratory. Their energetic and physical properties were analyzed using different ISO standards, resulting in eight suitable samples that complied with regulations. A comparative cost analysis was also carried out to evaluate the profitability of the pellets produced compared to the traditional pellets from Pinus radiata. It was concluded that profitability increased by 11.0% when producing pellets with a Pinus radiata mixture, mainly due to the decrease in acquisition, sawing and transportation costs. In addition, sustainable pellets production decreased emissions by 5.0% (78,780 tonnes CO2 year−1). The most profitable mixture was that of alperujo/Pinus radiata 90/10 w/w, due to both reduced costs and a reduction in CO2 emissions. Sustainable pellets showed as perfectly suitable to be used as a solid biofuel.

Cultural pattern in economies: A study of similar ranking countries in the ease of doing business index

In a paper published in 2002, Kevin O'Rourke and Jeffrey argued that in real sense globalization began in the 19th Century, when a sudden decrease in transport costs allowed the prices of commodities in Europe and Asia to converge. Since then it strengthened day by day and now the world has developed into what we call a ‘Global Village'. The concept of ‘Business Environment' becomes relevant here. A business entity is influenced by a number of factors which are beyond its control. For instance competition, technology, government policies, social and economic trends are some of the factors included in business environment. As per this concept, all the parameters covered by World Bank for its Ease of Doing Business index fits in the legal aspect of the Business Environment. World Bank comes up with Ease of Doing Business Index annually since 2004, where it ranks 190 countries on various parameters (laws related to these parameters are considered). These include Starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Though these rankings are being widely studied already for the types of impacts it has over a country's economy. This paper is an attempt to use these rankings (2017 & 2018) as the basis for the study of cultural similarities and patterns across the nations. It is an endeavor to find out if the countries having similar rankings in the index share some cultural similarities as well. Rationale for studying the association between culture and ranking is that regulatory environment of country is to some extent a reflection of the culture of that country.

The effect of the density of candidate roads on solutions in tactical forest planning

In this paper, we inquire into whether, and by how much, the use in tactical planning of a dense set versus a sparse set of candidate roads can reduce the two major costs (construction and transportation) of forest operations. This inquiry is conducted by using an optimal road location model to generate dense and sparse sets of candidate roads for three different problem instances. These problem instances were then solved using a mixed integer representation of the integrated tactical planning problem. The results show that the use of a dense set versus a sparse set of candidate roads, for all three problem instances, yielded solutions with a mean decrease in transportation and construction costs of 34.34% and 6.94%, respectively. The mean increase in revenue was 1.06%, and the mean increase in the objective function value (revenue minus the total road construction and transportation costs) was 5.62%. In addition, the mapped solutions reveal the spatial attributes of a lower versus a higher cost road network: straighter roads and more efficiently located forks within the road network. These results were obtained to illustrate how reductions in the costs of transportation and road construction can be achieved in tactical planning.

The development push of refugees: evidence from Tanzania

We exploit a 1991–2010 Tanzanian household panel to assess the effects of the temporary refugee inflows originating from Burundi (1993) and Rwanda (1994). We find that the refugee presence has had a persistent and positive impact on the welfare of the local population. We investigate the possible channels of transmission, underscoring the importance of a decrease in transport costs as a key driver of this persistent change in welfare. We interpret these findings as the ability of a temporary shock to induce a persistent shift in the equilibrium through subsequent investments rather than a switch to a new equilibrium in a multiple-equilibrium setting.

Swapping inventory between competing firms

In this study, we investigate how competing firms swap inventory. We consider two firms located in two different markets that produce the same type of product. Each firm sells in the two markets. The selling price in each market is determined by the selling quantities of the two firms. We first show that the optimal swapping quantity is zero when firms decide to swap inventory without a sophisticated method. That is, they would not swap inventory. However, under our proposed inventory swapping method, competing firms swap a positive amount of inventory, enabling a higher profit for both firms. We also find that the swapped quantity increases as transportation costs decrease, and swapping inventory may not be beneficial if the transportation cost is either too low or too high. In addition, we investigate how to implement the swapping inventory agreement when the value of the swapped inventory differs by market. We show that firms may prefer to return the physical products to pay the value difference, especially if they are risk-averse.