Explaining Truck Rate Variations for Produce Shipped to the Northeast

Beilock, Richard; Koburger, John H.; Morgan, Jeffrey P.

doi:10.1017/s0163548400004040

Cited by 2 publications

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References 5 publications

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“…Seasonal variations in the volume of, and freight rates paid for, this freight are believed to be slight. On the other hand, there are dramatic seasonal swings in the volume of freight leaving Florida and it is known that the freight rates are correlated closely with this volume (e.g., Beilock, Kohburger, and Morgan (1984)). Therefore, the opportunity costs associated with the delays entailed in seeking Florida-destination and Florida-origin loads should also vary seasonally, ceteris paribus.…”

Section: E2i Are Bivariate Normal With E(eli)=e(e2i)=o Var(eli)=var(mentioning

confidence: 99%

Market access in regulated and unregulated markets: The continuing cost of interstate motor carrier regulation

Wilson

Beilock

1994

J Regul Econ

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This study examines the effect of regulatory reform in the interstate trucking industry. In our model, carriers travel in round trips and choose to serve different markets corresponding to each leg of the trip. Some carriers have authority to haul freight subject to regulation while other carriers do not. Unlike previous studies, our model applies to decisions across multiple legs. Using a bivariate probit, we find differences in the determinants of access across markets. Entry regulation has a significant influence only in markets dominated by regulated traffic, whereas location has a significant influence only in markets dominated by unregulated traffic.

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Section: E2i Are Bivariate Normal With E(eli)=e(e2i)=o Var(eli)=var(mentioning

confidence: 99%

Market access in regulated and unregulated markets: The continuing cost of interstate motor carrier regulation

Wilson

Beilock

1994

J Regul Econ

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The Determinants of Full‐Empty Truck Movements

Beilock

Kilmer

1986

American J Agri Economics

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A model is developed to explain full-empty movement decisions for motor carriers. The model is estimated for movements to Florida of carriers serving the Florida produce/ornamentals industry. The results indicate that carriers act rationally, basing their decisions on a wide range of factors. The findings also suggest that regulatory restrictions continue to result in unnecessary empty movements.Transportation rates playa crucial role in the determination of economic activity over time and space. Despite this fact, relatively little attention has been devoted to understanding transportation markets. Indeed, it is common in interregional trade modeling to treat transportation supply as perfectly elastic. This tangential treatment of transportation markets has been identified as a major reason for the failure of many, if not most, interregional trade models to reflect adequately the economic activity being depicted (Johnson, p. 63). This article describes a study which focuses on understanding one aspect of these markets: the determinants of full/empty movement decisions. The results help to explain seasonal swings in rate levels, why some rates taper (i.e., increase at a decreasing rate) with distance, the impact of regulatory controls, and the role of expectations in carrier decision making.It is recognized that jointness in the production of transportation services favors full movements. If a vehicle goes from point ito pointj, the marginal cost of obtaining and carrying a load is the cost of search, pickup, and delivery, and the increment in fuel and labor costs over those for running empty (Mohring,. This increment is generally small when compared to total running costs. ThereRichard Beilock and Richard L. Kilmer are an assistant professor and an associate professor, respectively, Food and Resource Economics Department, University of Florida. Authors are listed in alphabetical order; senior authorship is not assigned. This is Florida Agricultural Experiment Station Journal Series No. 6483.Review was coordinated by Peter Heimberger, associate editor.fore, a large share of the transportation costs becomes a fixed cost which does not influence the carrier's full-empty movement decision process (Jara-Diaz). Despite this inducement to avoid empty movements, considerable empty movements are still observed. The Interstate Commerce Commission (lCC) found that over 20% of refrigerated trailers on interstate highways were empty (ICC, p. 12), and the estimates for specialized equipment (e.g., tank truck and bulk goods carriers) ranged as high as 40%. Empty mileage may result from restrictions in the regulatory system, be unavoidable due to freight imbalances between regions, or simply reflect carriers foregoing loads to maximize returns at another location (Paxson, Miller, and Basemann and Daugherty). However, there has been little empirical work to quantify the importance of these factors. In this article, a model is developed to explain full-empty movement decisions of motor carriers. The empirical estimation of the m...

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Explaining Truck Rate Variations for Produce Shipped to the Northeast

Cited by 2 publications

References 5 publications

Market access in regulated and unregulated markets: The continuing cost of interstate motor carrier regulation

Market access in regulated and unregulated markets: The continuing cost of interstate motor carrier regulation

The Determinants of Full‐Empty Truck Movements

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