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Integrative freight demand management in the New York City metropolitan area : implementation phase.
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Integrative freight demand management in the New York City metropolitan area : implementation phase.
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  • Abstract:
    Urban freight transportation is crucial to the quality of modern life, though at the same time it

    produces significant negative externalities. Despite the relatively small proportion of freight with respect

    to all traffic, urban freight movements are increasingly recognized as significant forces of influence on

    urban transportation systems and urban economic vitality. A range of freight system management

    strategies have been tried and implemented with various degrees of success throughout the world. Some

    of these strategies are carrier-centered, such as the use of cooperative delivery systems, which change the

    logistical aspects of carrier operations, but do not affect the actual underlying demand. As a result, their

    influence tends not to extend beyond carriers, to other aspects of urban transportation systems. At the

    other end of the spectrum, receiver-centered traffic demand management (TDM) measures attempt to

    change the nature of the actual demand for the cargo. These policies take advantage of the fact that

    receivers—by virtue of being the carriers’ customers—have a great deal of power over when and how

    deliveries are made. Carriers must respect receivers’ wishes if they want to stay in business.

    The Off-Hour Delivery (OHD) project is an innovative example of receiver-centered freight TDM.

    This initiative relies on incentives (financial or otherwise) to induce receivers to accept deliveries in the

    off-hours (7PM to 6AM). Since the incentives remove the opposition of the receivers, and the carriers are

    generally in favor, entire supply chains can switch to the off-hours, and the effect of these shifts

    reverberate through entire supply chains. The NYC OHD project has been implemented in stages. After a

    successful pilot phase that concluded in 2010, the Research and Innovative Technology (RITA) sponsored

    implementation phase (Integrative Freight Demand Management in the New York City Metropolitan

    Area: Implementation Phase) was launched in June 2011. Although this is technically the implementation

    phase, it should be noted that the term ‘launch phase’ may be more appropriate. The reason for this is that

    for a proper and successful implementation of an off-hour delivery program a sustained effort over a long

    period of time is required. After all, the program aims at transforming supply chains, which requires

    profound modifications of business practices. This report documents the key aspects and findings,

    impacts and influence of the OHD project, through the implementation phase which concluded in

    September 2013.

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