Munich Personal RePEc Archive

Do freight transport time savings translate to benefit for transport consuming companies?

Sambracos, Evangelos and Ramfou, Irene (2015): Do freight transport time savings translate to benefit for transport consuming companies?

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Abstract

It is common practice in Benefit - Cost analysis to consider freight transport time savings (FTTS) as a benefit for both transport producing and consuming companies. While transportation projects and policies resulting in FTTS are expected to have a positive effect on carriers’ performance reducing time related transport costs and improving service, this is not always the case for the demand side of the transport market. Using System Dynamics in order to model the internal supply chain of a transport using company and simulate several scenarios, we argue that FTTS do not necessarily translate to benefit for shippers, but their effect depends strongly on the structure of the company’s decision making process.

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