Freight Transport Market Research Articles

Freight Transport Innovations of European Railways- New Market Chances and Technological Perspectives

The paper analyses the main technical and economic elementsof the cwrent European rail freight market and presentsthe basic concepts of possible new technologies in the railfreight system. They would enable the railways to enter the morerewarding niches of the freight transport market. In an attemptto understand better the problems of introducing innovationsinto the transport sector this paper also considers the theoreticalframework and analyses the implementation paths of the proposedtechnological innovations. New technologies are confrontedwith various barriers and difficulties created by the existingand dominant technological paradigms. These are oftenpoweiful enough to prevent the introduction of alternatives andpromising innovations. The empirical part of the paper focuseson the possibilities of combining the existing innovative railfreight technologies which could, with the appropriate organizationalsolutions (time-tables) and political support, increasethe competitiveness of the rail freight transport in new andpromising market segments.

Comparison of Neural and Conventional Approaches to Mode Choice Analysis

This paper describes a new approach to behavioral mode choice modeling using neuro-fuzzy models. The new approach combines the learning ability of artificial neural networks and the transparent nature of fuzzy logic. The approach is found to be highly adaptive and efficient in investigating nonlinear relationships among different variables. In addition, the approach only selects the variables that significantly influence the mode choice and that display the stored knowledge in terms of fuzzy linguistic rules. This allows the modal decision-making process to be examined and understood in great detail. The neuro-fuzzy model is tested on the U.S. freight transport market using information on individual shipper and individual shipments. Shipments are disaggregated at the five-digit Standard Transportation Commodity Code level. Results obtained form this exercise are compared with similar results obtained from the conventional logit mode choice model and the standard back-propagation artificial neural network. The advantages of using the neurofuzzy approach are described.

FREIGHT MODE CHOICE MODELS USING ARTIFICIAL NEURAL NETWORKS

This paper presents a new approach to behavioral choice modeling using artificial neural networks (ANNs). A feed-forward network trained by a back-propagation learning algorithm is used in this study. As a modeling technique, ANNs are highly adaptive and very efficient in dealing with problems involving complex interrelationships among many variables. The application of ANNs in the development of mode choice models is tested on the U.S. freight transport market using information on individual shippers and individual shipments. Shipments are disaggregated at the 5-digit Standard Transportation Commodity Code (STCC) level, representing the most detailed information publicly available. Results obtained from this exercise are compared with similar results obtained from conventional logit and probit disaggregate mode choice models. ANNs produced slightly better results compared with both logit and probit models. A method for analyzing ANN results based on examining variable link weights is described. The method allows for increasing the efficiency of ANNs by selecting only those input variables which significantly contribute to the network output. ANN mode choice models are expected to behave equally well in the passenger transport market, both in the urban and intercity travel contexts.

Elasticities of mode choice probabilities and market elasticities of demand: Evidence from a simultaneous mode choice/shipment-size freight transport model

Abstract This paper presents empirical estimates of market elasticities of demand and elasticities of mode choice probabilities in the intercity freight transport market. Results are derived from a mixed discrete/continuous choice model of mode and shipment size. The mode choice component of the full model was specified as a binary probit function. The two modes considered were rail and regulated common carriers (full truck load). Data was drawn from the US Commodity Transportation Survey consisting of individual shipments of manufactured goods identified at the most disaggregate level. Results obtained in this study are compared with those obtained in previous studies, and areas of similarities and dissimilarities in the magnitude as well as interpretation of the results are highlighted. The own-price and cross-price elasticities of mode choice probabilities were found to vary from 1.44 to 1.88, and from 1.54 to 1.75, respectively. The market price elasticities of demand were found to vary significantly across commodity groups and geographic territories. Among the 40 market segments considered, the truck price elasticity of demand ranged between −0.749 and −2.525; the rail price elasticity of demand was slightly larger, ranging between −0.956 and −2.489; and the rail–truck cross-price elasticity of demand ranged between 0.904 and 2.532.

A study on the estimation and aggregation of disaggregate models of mode choice for freight transport

Abstract The literature on modal choice analysis of freight transport has revealed that the freight transport market is highly diverse. Aggregation over heterogeneous commodity types can cause a bias in the estimation of models. Therefore, disaggregation over commodity groups has been the norm and different models developed. In some cases, however, aggregate models might be preferable because they are less costly and may be adequate for prediction. The present paper attempts to improve our understanding of this area by investigating the desirability of aggregation over commodity groups.

Benefit segments in a freight transport market

Understanding the factors which are influential in the choice to purchase a service (or product) may be insufficient for the basis of a marketing strategy. It is also important to understand the interrelationships among these choice factors. Customers, or groups of customers may place a different order of priority on the factors influencing their choice of service. Groups of customers with a similar pattern of priorities can be termed “benefit segments”. Considers benefit segments in the Irish Sea freight transport market. Three segments, route sensitive, not price sensitive, and price sensitive, are developed using principal components analysis and cluster analysis. The segments are profiled in terms of product characteristics, transport service characteristics, company demographics and control variables to facilitate the transport service marketing manager in identifying the segments. Implications for marketing strategy are discussed.

The Freight Transport Market: Buyer‐Seller Relationships and Selection Criteria

In the UK the last decade has been a period in which the supply of freight transport services has generally exceeded demand, while both the characteristics of the transport managers, who are the industry′s customers, and organizational variables, which affect their behaviour, have changed. Examines how these changes have altered the duration of relationships with hauliers, the factors which determine haulier selection and the relative importance of the different aspects of service provided by hauliers. Shows that, although buyers value long‐term relationships, they are more active in the market than they were, dropping many and taking on new hauliers where appropriate. While service remains the most important selection determinant, price has become a factor of major importance. Furthermore, the relative importance of the different aspects of service has changed, with “flexibility” and “understanding of problems” ranking above some of the more traditional variables. While buyers perceive themselves as demanding customers, they attempt to manage their relationships with suppliers by creating an atmosphere which emphasizes collaboration. Concludes with recommendations for suppliers and with a discussion of the relevance of the IMP Group′s Interaction Model to the freight transport market.

Freight transportation carrier selection criteria: Identification of service dimensions for competitive positioning

Deregulation has seriously impacted the competitive climate of the transportation industry. Competition for customers has manifested itself in a recognition by transportation providers that they must understand the needs of different types of customers in order to create service attribute bundles tailored to specific customer segments. The research reported here is based on a study of a Midwest freight transportation market. A methodology for segmenting transportation markets on the salient transportation service dimensions utilized in the selection of specific providers of transportation is presented. The findings suggest that six natural groups of transportation service users exist, with the differences among the segments largely explained by five service dimensions.

A Disaggregate Model of Intercity Freight Transport Demand

One major issue arising out of early investigations of the National Transport Policy Study of South Africa focussed on the freight transport market and the need to measure impacts of potential transport policy changes in this market. In response to this need, a theoretically sound policy sensitive methodology was developed, capable of quantitatively evaluating the impacts of proposed policy changes.The purpose of this paper is to report on the development of this methodology as part of the transportation planning process. The full sequence of modelling up through prediction is illustrated: compilation of an extensive data base, estimation of a multinominal logit model of freight transport demand, the development of a forecasting package and prediction. It is shown that the forecasting package can be used to quantitatively measure the impacts of policy options. Using this methodology, final policy decisions can be made in a more rational way by better informed decision-makers. The methodology is currently being applied in South Africa.

Source loyalty in the freight transport market

Suggests that source loyalty can be described as the preference of a buyer to purchase a product or service from the same source as previously. Investigates the case of freight transport. Reveals a high degree of loyalty among respondent firms, which is attributable to service quality.

The Influence of the Image of Suppliers on Buyer Behaviour in the Freight Transport Market

The freight transport market in the UK has been increasing at a rate of between 1 and 2% p.a. since the mid 1960 a s measured by total ton‐miles and it is worth some £1,500 million annually. The freight business of British Rail, which accounts for approximately 20% of the total market size is of particular importance to the financial viability of the railways as a whole, owing to the fact that freight traditionally has generated about 40% of the revenue of British Rail and difficulty has been experienced in operating it at a sufficiently profitable level to provide for essential re‐investment in the business. This lack of profitability caused consideration to be given to the possibility of withdrawing altogether from the market for freight traffic in less than train‐loads but this was rejected on the grounds that freigh traffic shares assets such as track, signalling, locomotives and manpower with other rail services. A withdrawal from the smaller “wagon load” traffic would reduce traffic by nearly 50% and lead to an under‐utilisation of assets thus weakening overall rail profitability.