United States Department of Transportation
i
Integrative freight demand management in the New York City metropolitan area : implementation phase.
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2013-09-01
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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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