United States Department of Transportation
i
Assessing public benefits and costs of freight transportation projects : measuring shippers’ value of delay on the freight system.
-
2012-07-01
-
[PDF-1016.67 KB]
Details:
-
Creators:
-
Corporate Creators:
-
Corporate Contributors:
-
Subject/TRT Terms:
-
Publication/ Report Number:
-
Resource Type:
-
Geographical Coverage:
-
Edition:Final report; Apr. 2011-May 2012.
-
Corporate Publisher:
-
Abstract:Freight delay is detrimental to the national economy. In an effort to gauge the economic impact of freight delay due
to highway congestion, this project focuses on estimating shippers’ value of delay (VOD). We have accomplished
this through three strategies to monetize the impacts of congestion on shippers’ operations:
• Three half-structured on-site interviews with shipping managers in different type of industries were
conducted to obtain insights into their daily logistic operations and their subjective assessment of the delay
impacts. In light of the interviews, a comprehensive survey of major manufacturers and wholesalers within
Texas and Wisconsin was conducted.
• The analytical hierarchy process (AHP) and willingness-to-pay (WTP) method were then applied to
quantify the impact of congestion on shippers. The AHP reveals that among four possible delay
components, en route transportation delay is the most important, which justifies WTP evaluating the value
of highway congestion delay. We have found a value of $56 per hour for congestion. Furthermore, a value
of $0.4 per percentage delay was also calculated for transportation time reliability using individual defined
travel time.
• An analytical inventory model was used to examine the value of delay in view of mean and reliability of
transit time for shipment receivers. Nine industrial groups were analyzed. For example, shippers in the
chemical industry are calculated to have an additional $13.89 cost on a truckload delivery if the transit time
is expected to increase by one hour. The random delay has an average of $31.04 per hour per truckload
delivery.
-
Format:
-
Funding:
-
Collection(s):
-
Main Document Checksum:
-
Download URL:
-
File Type:
