Impacts of Policy-Induced Freight Modal Shifts (2019) / Chapter Skim
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Pages 33-56
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From page 33... ...
33 Macro Mode Share Factors This section focuses on macro mode share factors, which are driven by major trends affecting mode share, such as productivity, deregulation and regulation, containerization, double stacking, just-in-time delivery (JIT) , fuel costs and climate change, and international trade.
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34 Impacts of Policy-Induced Freight Modal Shifts 39 percent over the same period. However, in recent years trucking has grown more rapidly.
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Factors That Influence Freight Mode Choice 35 Deregulation and Regulation Over the last quarter of the twentieth century, Congress has sharply curtailed regulation of transportation. Major legislation included the following: • Railroad Revitalization and Regulatory Reform Act of 1976 (the 4-R Act)
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36 Impacts of Policy-Induced Freight Modal Shifts 1980 deregulated the industry, showing the tremendous positive effects, with productivity and volumes soaring while rates decreased substantially. The Surface Transportation Board reports that railroad rates fell by 45 percent in inflationadjusted dollars from 1984 to 1999.
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Factors That Influence Freight Mode Choice 37 fivefold growth in trailer and container traffic on the railroads from 1965 to 1995 (Dewitt and Clinger 2014)
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From page 38... ...
38 Impacts of Policy-Induced Freight Modal Shifts As the intermodal market evolved, equipment availability and standardization were constant issues. Although the intermodal trailer still plays a role in the market, the primary intermodal equipment type is the domestic container, with trailer traffic continuing to be converted.
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Factors That Influence Freight Mode Choice 39 Toyota adopted JIT in the Toyota Production System in the 1970s as a means of eliminating waste. However, it was not at the Ford Motor Company that Toyota representatives saw the JIT model in action.
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40 Impacts of Policy-Induced Freight Modal Shifts more aerodynamically clean truck shapes, and more efficient head-haul and backhaul routing and dispatching (Brogan et al.
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Factors That Influence Freight Mode Choice 41 Higher fuel prices, the threat of climate change, the push toward energy independence and energy security, and the greening of the supply chain will all create pressure to invest in policies that shift freight from trucks to rail, water, and pipelines. International Trade Alterations in trade patterns affect the choice of transportation modes used in this country.
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42 Impacts of Policy-Induced Freight Modal Shifts • Changes in U.S. reliance on imported consumer products.
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Factors That Influence Freight Mode Choice 43 Insights from the IDIs For freight mode choice policy to be effective in inducing desired changes in behavior, policymakers must have a clear idea about how the intended target(s) would react to the policy measure(s)
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44 Impacts of Policy-Induced Freight Modal Shifts carriers, and receivers that collectively cover a broad range of business conditions and geographies) about the types of freight mode choice considered when shipping or receiving goods.
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Factors That Influence Freight Mode Choice 45 backhauls by coordinating multivendor pickups on return trips back to the DCs. Although the company owns the majority of the trailers used for delivery, the company also hires intermodal carriers to move cargo by train and truck.
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46 Impacts of Policy-Induced Freight Modal Shifts storage for cargo when switching from one mode/vehicle to another)
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Factors That Influence Freight Mode Choice 47 Factors Affecting Mode Choice The IDIs revealed that various factors influence mode choice, as summarized in Table 10. It is worth noting that C1 and C2 operate in specific mode markets (inland waterways and intermodal/rail, respectively)
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48 Impacts of Policy-Induced Freight Modal Shifts deters them from increasing the use of these modes. R3 stated that the company uses trucks to get deliveries on time and with the desired quality of service standards, given that the company's sales depend highly on the timeliness of the shipment: "If rail does not meet our sales timing, we are going to end up losing a lot of product.
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Factors That Influence Freight Mode Choice 49 results in decreased use of rail, intermodal, and barge, and increased use of trucks. C1 experiences a decrease in the shipment of agricultural products during the winter, to almost half the typical volume shipped during late spring and summer.
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50 Impacts of Policy-Induced Freight Modal Shifts by R2, who said that the need to perform backhauls from DCs to vendors has led to the use of trucks despite his firm's interest in using intermodal. One of the most interesting comments received was made by a mid-size shipper (S4)
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Factors That Influence Freight Mode Choice 51 Improvement Quotes from the Interviewees Ensure on-time deliveries "We get low 90s on on-time percentages and derailments and what's happening lately in the industry. How is fracking fuel affecting us?
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From page 52... ...
52 Impacts of Policy-Induced Freight Modal Shifts intermodal for distances longer than 250 miles and trucks for all other shipments. R2 stated that it cannot use intermodal despite its willingness to do so because of rail congestion, especially in the peak season.
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Factors That Influence Freight Mode Choice 53 would reduce costs by decreasing the number of trips. Overall, participants are willing to switch to more sustainable modes if quality of service requirements are met.
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54 Impacts of Policy-Induced Freight Modal Shifts per ton-kilometer (ton-km) for rail and road freight movement.
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Factors That Influence Freight Mode Choice 55 reduced to 55 to 99 percent of the 1990 levels. The noise levels should not be more than 55 decibels (dB)
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56 Impacts of Policy-Induced Freight Modal Shifts the optimization formulation to the base-case scenario indicated that the use of large trucks only would provide the optimal traffic mix that would minimize social costs. The use of large trucks only when required by the shipment results in social cost savings of 2.76 percent, a reduction in average congestion time by 3.84 percent or $76,151/day, and reductions in various pollutants from 0.02 percent to 8.68 percent (Holguín-Veras et al.
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