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Modeling net rates for expedited freight services

Author

Listed:
  • Smith, L. Douglas
  • Campbell, James F.
  • Mundy, Ray

Abstract

We demonstrate the development, testing and application of statistical models to study actual billings (net of discounts) for expedited freight services. The models reveal the structure of net tariffs. They enable carriers to identify customers whose revenues are deficient considering services rendered, and terminals where revenues are deficient considering their mix of business. The models thus point to situations where business activities, pricing structures or negotiated discounts need review. The models also verify that the overwhelming determinants of monthly charges to shippers are the fundamental cost drivers for the industry, namely number of shipments, weight of shipments, and distance shipped.

Suggested Citation

  • Smith, L. Douglas & Campbell, James F. & Mundy, Ray, 2007. "Modeling net rates for expedited freight services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(2), pages 192-207, March.
    • Handle: RePEc:eee:transe:v:43:y:2007:i:2:p:192-207
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    Cited by:

    1. Rancourt, Marie-Ève & Bellavance, François & Goentzel, Jarrod, 2014. "Market analysis and transportation procurement for food aid in Ethiopia," Socio-Economic Planning Sciences, Elsevier, vol. 48(3), pages 198-219.
    2. Christian Brabänder & Maximilian Braun, 2020. "Bringing economies of integration into the costing of groupage freight," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(6), pages 366-385, December.
    3. Budak, Aysenur & Ustundag, Alp & Guloglu, Bulent, 2017. "A forecasting approach for truckload spot market pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 55-68.
    4. Jason W. Miller, 2018. "ARIMA Time Series Models for Full Truckload Transportation Prices," Forecasting, MDPI, vol. 1(1), pages 1-14, September.

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