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Hard Red Spring Wheat Marketing: Effects of Increased Shuttle Train Movements on Railroad Pricing in the Northern Plains

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  • Ndembe, Elvis

Abstract

Despite the widespread adoption of shuttle train grain elevators and their potential for reducing rates for grain transport, few studies have evaluated their impact on railroad pricing. The aim of this paper is to assess railroad pricing behavior as well as empirically examine the impact of shuttle train movement on hard red spring wheat transport from North Dakota over time. Ordinary least squares estimation of the pricing model has rate per ton-mile as a dependent variable and supply and demand determinants as regressors. Intermodal competition and shuttle trains were found to have played a significant role in rate reduction over time.

Suggested Citation

  • Ndembe, Elvis, 2015. "Hard Red Spring Wheat Marketing: Effects of Increased Shuttle Train Movements on Railroad Pricing in the Northern Plains," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 54(2).
    • Handle: RePEc:ags:ndjtrf:241831
    DOI: 10.22004/ag.econ.241831
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    References listed on IDEAS

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    1. Bitzan, John & Vachal, Kimberly & VanWechel, Tamara & Vinje, Dan, 2003. "The Differential Effects of Rail Rate Deregulation U.S. Corn, Wheat and Soybean Markets," MPC Reports 231695, North Dakota State University, Upper Great Plains Transportation Institute.
    2. MacDonald, James M, 1989. "Railroad Deregulation, Innovation, and Competition: Effects of the Staggers Act on Grain Transportation," Journal of Law and Economics, University of Chicago Press, vol. 32(1), pages 63-95, April.
    3. Camilo Sarmiento & William W. Wilson, 2005. "Spatial Modeling in Technology Adoption Decisions: The Case of Shuttle Train Elevators," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1034-1045.
    4. Babcock, Michael W. & McKamey, Matthew & Gayle, Phillip, 2014. "State Variation in Railroad Wheat Rates," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 53(3).
    5. Dragan Miljkovic, 2001. "Transporting export-bound grain by rail: Rail rates in the Post-Staggers Rail Act Period," Transportation, Springer, vol. 28(3), pages 297-314, August.
    6. Won W. Koo & Ihn H. Uhw, 1984. "United States and Canadian Rail Freight-Rate Structures: A Carparative Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 32(2), pages 301-326, July.
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    Cited by:

    1. William Wilson & Prithviraj Lakkakula, 2021. "Secondary rail car markets for grain transportation and basis values," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 472-488, July.
    2. Hyland, Michael F. & Mahmassani, Hani S. & Bou Mjahed, Lama, 2016. "Analytical models of rail transportation service in the grain supply chain: Deconstructing the operational and economic advantages of shuttle train service," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 294-315.
    3. Ndembe, Elvis & Bitzan, John D., 2022. "A shadow price approach examining service quality in a heavily captive U.S. freight transportation market: The case of grain transport," Transport Policy, Elsevier, vol. 116(C), pages 1-10.
    4. Ndembe, Elvis & Bitzan, John, 2018. "Grain freight elevator consolidation, transportation demand, and the growth of shuttle facilities," Research in Transportation Economics, Elsevier, vol. 71(C), pages 54-60.
    5. Javier Ho & Paul Bernal, 2021. "Estimating a global demand model for soybean traffic through the Panama Canal," Journal of Shipping and Trade, Springer, vol. 6(1), pages 1-23, December.

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    Keywords

    Crop Production/Industries; Marketing;

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