Inbound Freight Research Articles

Impact of seasonality on the inbound and outbound freight of a global fertilizer company

The growing importance of agriculture in the Brazilian economy makes it essential that agricultural companies seek to increase their logistics competitiveness. This study aimed to compare and analyze the impact of seasonality of grain harvest and specific events, such as the 2018 Brazil truck drivers’ strike, on the prices of inbound and outbound freight in a multinational company located in several Brazilian states. It focused on the CIF (Cost, Insurance, and Freight) routes of the company between 2015 and 2019 in Brazil, and the relationship between time of year and cost of transportation. These data were analyzed in a descriptive level after being treated by statistical analysis. This study showed that the costs of outbound freight suffered greater increases compared to the inbound freight due to the seasonality of grain harvest and the 2018 Brazil truck drivers’ strike.

Estimation of freight demand at Mumbai Port using regression and time series models

Forecasting future freight demand at a seaport is important for its planning and development. India has 13 major ports which handle 75% of the total seaport freight. Among the 13 major ports, Mumbai Port, ranked at number three in the country for the year 2013-14, handles about 11% of the total freight at major seaports in India. The focus of this paper is on developing inbound and outbound demand forecasting models for Mumbai Port. The models are developed using additive regression and time series techniques. In regression analysis economic indicators, Gross Domestic Product (GDP) and Crude Oil Production (CRLP) are found to be significant. The multivariate models performed better than the univariate models. The validation of time-series models resulted in error of less than 5%. Both multivariate regression and time-series models are used to forecast freight demand for the years 2014- 15 through 2017-18. The regression models are producing more optimistic forecasts than the time series models. The elasticity analysis suggested that Mumbai's inbound freight will be growing almost with India's GDP growth rate, the outbound freight, however, will experience slower growth than that of inbound.

The basic train makeup problem in shunting yards

In shunting yards, railcars of incoming trains are uncoupled and reassembled to outbound trains. This time-critical process that employs a complex system of switches, hump hills, and classification tracks requires plenty interdependent decision problems to be solved. An elementary decision task among these is the train makeup problem, which assigns railcars of inbound freight trains to outbound trains, such that the priority values of the selected cuts of railcars are maximized and given train capacities are observed. This assignment decision is further complicated by the fact that railcars cannot facultatively be selected, but the buildup sequences of incoming trains need to be considered. This work introduces and discusses the basic train makeup problem, analyses its complexity status and develops suited exact and heuristic solution procedures that are tested in a comprehensive computational study.

Ocean Carriers’ Collusion Under Antitrust Immunity: Evidence of Asymmetric Pass-Through

As fuel costs are the largest component of the shipping industry’s operating costs, this study examines whether ocean carriers pass fuel cost increases through to freight rates more quickly than they pass through fuel cost decreases. The focal price collusion theory suggests that such asymmetric pass-through could be a result of collusive behavior because collusion is easier to sustain when costs are falling than when costs are rising. Using a lag-adjustment model as the econometric framework, findings from this study show strong evidence for asymmetric adjustments of the US inbound freight rates in response to fuel cost changes. Such asymmetry persisted after the passage of the Ocean Shipping Reform Act of 1998. Moreover, the findings do not support the consumer search theory as an alternative explanation for the freight rate asymmetry.

Modelling of Freight Trains Classification Using Queueing System Subject to Breakdowns

The paper presents a mathematical model and a simulation model of the freight trains classification process. We model the process as a queueing system with a server which is represented by a hump at a marshalling yard. We distinguish two types of shunting over the hump; primary shunting represents the classification of inbound freight trains over the hump (it is the primary function of marshalling yards), and secondary shunting is, for example, represented by the classification of trains of wagons entering the yard via industrial sidings. Inbound freight trains are considered to be customers in the system, and all needs of secondary shunting are failures of the hump because performing secondary shunting occupies the hump, and therefore inbound freight trains cannot be sorted. All random variables of the model are considered to be exponentially distributed with the exception of customer service times which are Erlang distributed. The mathematical model was created using method of stages and can be solved numerically employing a suitable software tool. The simulation model was created using coloured Petri nets. Both models are tested in conditions of a marshalling yard.

Analysis and Evaluation of Double-Ended Flat-Shunted Yard Performance Employing Two Yard Crews

The yards are facilities that reassemble inbound freight train cars into outbound freight trains. These facilities play an essential role for providing the freight transportation service by rail, however, they are nonrevenue producing elements for the railway freight companies and therefore keeping them unutilized is not acceptable. In this paper, a double-ended flat-shunted yard has been studied by discrete-event-based simulations. The results obtained demonstrate significantly low utilization levels of the subsystems of this yard. Therefore, a possible reduction of floating resources is investigated.

The Buyer-Vendor Coordination Problem: Modeling Inbound and Outbound Cargo Capacity and Costs

In this paper, we generalize the deterministic demand buyer-vendor coordination problem to simultaneously consider cargo capacity constraints and general inbound/outbound transportation costs. To this end, we first consider a replenishment cost structure that includes a fixed cost as well as a stepwise inbound freight cost for the vendor. We then extend our results to consider the case where both the vendor and the buyer are subject to this freight cost structure. Hence, in the second model, both the inbound and the outbound transportation costs/constraints of the buyer-vendor pair are modeled explicitly. For each case, we provide heuristic algorithms with promising error bounds. The error bounds for these heuristic methods are 6 and 25%, respectively. Using the costs of these heuristics as upper bounds, we also develop finite time exact solution procedures.

An Algorithm for the Multiattribute, Multicommodity Flow Problem with Freight Consolidation and Inventory Costs

To remain competitive, manufacturers must seek transportation strategies that both reduce costs and maintain high levels of service. One approach is to consolidate inbound freight at transshipment points. This provides economies of scale and promotes capacity efficient mixes of high and low density items. When service level considerations are included via inventory holding costs, the approach yields a nonlinear network model with multiattribute multicommodity flows. The model is difficult to solve for global optimality in that the objective function is neither convex nor concave; therefore, a composite algorithm is proposed. The algorithm alternates between a linearization technique to find local optima and a heuristic search based on “adjacent concave flows” to provide local improvements. Computational results demonstrate the ability of the multiattribute approach to identify savings in overall transportation and inventory costs when compared to a single attribute approach.

Cost Savings for Inbound Freight: The Effects of Quantity Discounts and Transport Rate Breaks on Inbound Freight Consolidation Strategies

Addresses a number of issues relating to determining whether products should be ordered independently and therefore shipped as a single‐product order, or co‐ordinated and shipped as a group, or multiproduct, order from a single source. Factors which might influence the decision include the level or volume of demand, the distribution of demand across products, the weight of items and the attractiveness of the quantity discount offered. Uses an optimal inventory‐theoretic model, that incorporates transport weight breaks and quantity discounts, to assess when product orders should be combined and what products should be ordered separately. The effects of these decisions on the order interval, the number of order groupings, the proportion of items ordered independently, the proportion of attractive discounts forgone in favour of consolidation, and the relative cost savings, are examined using an extensive set of simulated data that are based on a firm in the automobile industry supply chain.

Some Insights into Inbound Freight Consolidation

Consolidation of inbound freight is one way in which procurement costs might be reduced. Can it compete with direct shipments from vendors?

Inbound Freight and Deregulation: A Management Opportunity

Journal of Purchasing and Materials ManagementVolume 19, Issue 3 p. 16-21 Article Inbound Freight and Deregulation: A Management Opportunity Tommy F. Griffith, Tommy F. GriffithSearch for more papers by this authorNorman E. Daniel, Norman E. DanielSearch for more papers by this authorDavid L. Shrock, David L. ShrockSearch for more papers by this authorMartin T. Farris, Martin T. FarrisSearch for more papers by this author Tommy F. Griffith, Tommy F. GriffithSearch for more papers by this authorNorman E. Daniel, Norman E. DanielSearch for more papers by this authorDavid L. Shrock, David L. ShrockSearch for more papers by this authorMartin T. Farris, Martin T. FarrisSearch for more papers by this author First published: 01 September 1983 https://doi.org/10.1111/j.1745-493X.1983.tb00084.xCitations: 9AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Citing Literature Volume19, Issue3Fall 1983Pages 16-21 RelatedInformation