IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/68558.html
   My bibliography  Save this paper

Do freight transport time savings translate to benefit for transport consuming companies?

Author

Listed:
  • Sambracos, Evangelos
  • Ramfou, Irene

Abstract

It is common practice in Benefit - Cost analysis to consider freight transport time savings (FTTS) as a benefit for both transport producing and consuming companies. While transportation projects and policies resulting in FTTS are expected to have a positive effect on carriers’ performance reducing time related transport costs and improving service, this is not always the case for the demand side of the transport market. Using System Dynamics in order to model the internal supply chain of a transport using company and simulate several scenarios, we argue that FTTS do not necessarily translate to benefit for shippers, but their effect depends strongly on the structure of the company’s decision making process.

Suggested Citation

  • Sambracos, Evangelos & Ramfou, Irene, 2015. "Do freight transport time savings translate to benefit for transport consuming companies?," MPRA Paper 68558, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:68558
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/68558/1/MPRA_paper_68558.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Evangelos Sambracos & Irene Ramfou, 2014. "The Effect of Freight Transport Time Changes on The Performance of Manufacturing Companies," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 119-138.
    2. Hensher, David A., 2010. "Hypothetical bias, choice experiments and willingness to pay," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 735-752, July.
    3. Luca Zamparini & Aura Reggiani, 2007. "Freight Transport and the Value of Travel Time Savings: A Meta‐analysis of Empirical Studies," Transport Reviews, Taylor & Francis Journals, vol. 27(5), pages 621-636, March.
    4. Evangelos Sambracos & Irene Ramfou, 2013. "Freight Transport Time Savings and Organizational Performance: A Systemic Approach," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 6(1), pages 19-40, April.
    5. W. J. Baumol & H. D. Vinod, 1970. "An Inventory Theoretic Model of Freight Transport Demand," Management Science, INFORMS, vol. 16(7), pages 413-421, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evangelos Sambracos & Irene Ramfou, 2014. "The Effect of Freight Transport Time Changes on The Performance of Manufacturing Companies," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 119-138.
    2. Carrion, Carlos & Levinson, David, 2012. "Value of travel time reliability: A review of current evidence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 720-741.
    3. Massiani, Jérôme, 2014. "A micro founded approach to the valuation of benefits of freight travel time savings," Research in Transportation Economics, Elsevier, vol. 47(C), pages 61-69.
    4. Ulrike Illmann & Jan Kluge, 2021. "Halb voll oder halb leer? Zur Bedeutung flächendeckender öffentlicher Ladeinfrastruktur für die Entwicklung der Elektromobilität," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 28(05), pages 10-17, October.
    5. Toşa, Cristian & Sato, Hitomi & Morikawa, Takayuki & Miwa, Tomio, 2018. "Commuting behavior in emerging urban areas: Findings of a revealed-preferences and stated-intentions survey in Cluj-Napoca, Romania," Journal of Transport Geography, Elsevier, vol. 68(C), pages 78-93.
    6. Jonas Schmidt & Tammo H. A. Bijmolt, 2020. "Accurately measuring willingness to pay for consumer goods: a meta-analysis of the hypothetical bias," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 499-518, May.
    7. Kanchanaroek, Yingluk & Termansen, Mette & Quinn, Claire, 2013. "Property rights regimes in complex fishery management systems: A choice experiment application," Ecological Economics, Elsevier, vol. 93(C), pages 363-373.
    8. Ismail Magerramovich Aliev & Viktor Ivglafievich Sigov, 2017. "Creating a Learning Organization as an Increase in the Adaptability of a Company's Human Capital to the Volatility of the External Environment," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 57-69.
    9. Sagebiel, Julian & Müller, Jakob R. & Rommel, Jens, 2013. "Are Consumers Willing to Pay More for Electricity from Cooperatives? Results from an Online Choice Experiment in Germany," MPRA Paper 52385, University Library of Munich, Germany.
    10. Stefan Eriksson & Per Johansson & Sophie Langenskiöld, 2017. "What is the right profile for getting a job? A stated choice experiment of the recruitment process," Empirical Economics, Springer, vol. 53(2), pages 803-826, September.
    11. San-José, Luis A. & García-Laguna, Juan, 2009. "Optimal policy for an inventory system with backlogging and all-units discounts: Application to the composite lot size model," European Journal of Operational Research, Elsevier, vol. 192(3), pages 808-823, February.
    12. Hanke Ndau & Elizabeth Tilley, 2018. "Willingness to Pay for Improved Household Solid Waste Collection in Blantyre, Malawi," Economies, MDPI, vol. 6(4), pages 1-21, October.
    13. Tao, Xuezong & Zhu, Lichao, 2020. "Meta-analysis of value of time in freight transportation: A comprehensive review based on discrete choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 213-233.
    14. Olsthoorn, Mark & Schleich, Joachim & Guetlein, Marie-Charlotte & Durand, Antoine & Faure, Corinne, 2023. "Beyond energy efficiency: Do consumers care about life-cycle properties of household appliances?," Energy Policy, Elsevier, vol. 174(C).
    15. M. Lefebvre & C. Biguzzi & E. Ginon & S. Gomez-y-Paloma & S. R. H. Langrell & S. Marette & G. Mateu & A. Sutan, 2017. "Mandatory integrated pest management in the European Union: experimental insights on consumers’ reactions," Review of Agricultural, Food and Environmental Studies, Springer, vol. 98(1), pages 25-54, July.
    16. Su, Jie & Gasparatos, Alexandros, 2024. "Assessing the heterogeneity of public acceptability for mangrove restoration through a choice experiment," Ecological Economics, Elsevier, vol. 218(C).
    17. Andersson, Matts & Berglund, Moa & Flodén, Jonas & Persson, Christer & Waidringer, Jonas, 2017. "A method for measuring and valuing transport time variability in logistics and cost benefit analysis," Research in Transportation Economics, Elsevier, vol. 66(C), pages 59-69.
    18. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part I. Macro-scale analysis of literature and integrative synthesis of empirical evidence from applied economics, experimental psychology and neuroimag," Journal of choice modelling, Elsevier, vol. 41(C).
    19. Lin, Wen & Nayga, Rodolfo M., 2022. "Green identity labeling, environmental information, and pro-environmental food choices," Food Policy, Elsevier, vol. 106(C).
    20. Krčál, Ondřej & Peer, Stefanie & Staněk, Rostislav & Karlínová, Bára, 2019. "Real consequences matter: Why hypothetical biases in the valuation of time persist even in controlled lab experiments," Economics of Transportation, Elsevier, vol. 20(C).

    More about this item

    Keywords

    Freight transport time; benefit – cost analysis; Systems Dynamics;
    All these keywords.

    JEL classification:

    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:68558. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.