The purpose of this research was to evaluate whether a shipper's fuel surcharge (FSC) program affected its per-load transportation costs in the United States full-truckload (TL) transportation industry. In this study, we restricted transportation costs to line-haul charges and fuel surcharge premiums. Using ordinary least squares (OLS) regression, we examined the effect of a shipper's FSC program on its line-haul charges. We controlled for well-established transportation cost drivers, including distance and geography. We found that carriers discounted their line-haul rates according to a shipper's FSC program. The more a shipper paid in FSC premiums, the less it paid in line-haul charges. For fuel prices above $2.08 per gallon, however, the fuel surcharge premiums dwarfed the line-haul discount. This effect was most pronounced for shippers with low efficiency values. Shippers with lower efficiency values paid higher per-load transportation costs than shippers with higher efficiency values.


    Access

    Download


    Export, share and cite



    Title :

    Impact of risk sharing on competitive bidding in truckload transportation


    Contributors:

    Publication date :

    2012


    Size :

    65 pages


    Remarks:

    Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2012.
    Cataloged from PDF version of thesis.


    Type of media :

    Theses


    Type of material :

    Electronic Resource


    Language :

    English




    The impact of bidding aggregation levels on truckload rates

    Collins, Julia M. (Julia Marie) / Quinlan, R. Ryan | DSpace@MIT | 2010

    Free access



    The impact of lead time on truckload transportation rates

    Caldwell, Erik R. (Erik Russell) / Fisher, Bryan C | DSpace@MIT | 2008

    Free access