United States Department of Transportation
i
Environmental and energy benefits of freight delivery consolidation in urban area.
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2013-03-01
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[PDF-2.33 MB]
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NTL Classification:NTL-FREIGHT-FREIGHT;NTL-ENERGY AND ENVIRONMENT-Environment Impacts;NTL-PLANNING AND POLICY-PLANNING AND POLICY;
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Abstract:Among new, innovative city logistics strategies, delivery cooperation has received increasing academic and
practical attention mostly in Europe and Japan. The idea is to establish cooperation among the suppliers, carriers
and the customers through Urban Consolidation Center (UCC), a public facility usually located at the city
boundary; with proper consolidation of loads and routing, the goods are then sent to the customers in the urban
area with cleaner vehicles and less vehicle miles traveled (VMT). In this study, we investigated the feasibility of
UCC in an urban setting at the tactical level with respect to total logistics cost and environmental impact. In other
words, whether UCC could reduce the logistics cost which involves the monetary costs for activities from
production to consumption, while maintaining acceptable level of energy consumption and vehicular emissions.
It is found that under certain conditions, UCC may become a favorable last-mile urban delivery solution to the
current one without a UCC. Especially the benefits of UCC strategies become significant when the customer rent
cost is high and UCC terminal operation cost is low. UCC becomes more beneficial as the economic scale is
greater (i.e., higher numbers of customers and suppliers). In addition, public subsidy for UCC terminals would
make urban cooperative delivery more competitive, resulting in lower truck VMT and emissions in the urban
area.
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