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Estimating the impact of transport costs on firms’ choice of transport chain and shipment size

Author

Listed:
  • Odolinski, Kristofer

    (Swedish National Road and Transport Research Institute (VTI))

  • Ek, Karin

    (Swedish National Road and Transport Research Institute (VTI))

Abstract

Multinomial logit models of firms’ choice of transport chain and shipment size are estimated for 16 commodity groups. The estimations are based on the Swedish Commodity Flow Survey (CFS) for 2016 and 2021 with choice data for individual shipments. The CFS is combined with cost and transport time data from the Swedish national freight transport model, Samgods, in order to estimate the impact of transport costs on firms’ transport chain and shipment size choice. Empirical midpoints of shipment sizes are included in the estimations such that the impact of ordering cost and holding cost are considered, which influences the transport cost estimates. Overall, results show that transport costs have a statistically significant impact on firm’s choice of transport, and the impact varies with respect to commodity group.

Suggested Citation

  • Odolinski, Kristofer & Ek, Karin, 2024. "Estimating the impact of transport costs on firms’ choice of transport chain and shipment size," Working Papers 2024:5, Swedish National Road & Transport Research Institute (VTI).
    • Handle: RePEc:hhs:vtiwps:2024_005
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    References listed on IDEAS

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    1. Jensen, Anders Fjendbo & Thorhauge, Mikkel & de Jong, Gerard & Rich, Jeppe & Dekker, Thijs & Johnson, Daniel & Cabral, Manuel Ojeda & Bates, John & Nielsen, Otto Anker, 2019. "A disaggregate freight transport chain choice model for Europe," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 121(C), pages 43-62.
    2. de Jong, Gerard & Daly, Andrew & Pieters, Marits & van der Hoorn, Toon, 2007. "The logsum as an evaluation measure: Review of the literature and new results," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(9), pages 874-889, November.
    3. Piendl, Raphael & Liedtke, Gernot & Matteis, Tilman, 2017. "A logit model for shipment size choice with latent classes – Empirical findings for Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 102(C), pages 188-201.
    4. Abate , Megersa & Vierth , Inge & Karlsson , Rune & de Jong , Gerard & Baak , Jaap, 2016. "Estimation and implementation of joint econometric models of freight transport chain and shipment size choice," Working papers in Transport Economics 2016:1, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Stochastic freight model; Disaggregate freight model; Freight mode choice; Transport chain; Shipment size; Commodity flow survey;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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