scholarly journals The impact of lumper costs, empty miles, and shipment size on the profitability of motor carriers: A case study

2002 ◽  
Vol 13 (1) ◽  
pp. 1-7
Author(s):  
Hokey Min

The passage of landmark deregulatory reforms in the Motor Carrier of Act of 1980 has constantly pressured the U.S. trucking industry to reduce transportation costs. Thanks to such pressure, total logistics costs have declined from 16.5% in 1980 to 10.1% of gross domestic product (GDP) in 2000. In particular, transportation costs have fallen from 7.6% to 5.9% of GDP in 2000. Transportation cost savings definitely benefit shippers, while jeopardizing the viability of carriers. To help transportation carriers cope with enormous cost pressure, this paper examines the impact that “lumper” costs, empty miles, and shipment size have on the very competitive trucking industry. Through an actual case study of a firm based in the Southeast U.S., we illustrate how lumper costs, empty front-haul and backhaul, and shipping weight and pieces can adversely affect the trucking firm’s profitability.

Author(s):  
Miguel A. Carriquiry ◽  
Bruce A. Babcock

Hotelling's classic model of spatial competition is adapted to estimate the impacts on grain price of the closure of one of three grain buyers on the Mississippi River in the vicinity of Scott County, Iowa. The customers of the buyer who is closing (River Gulf Grain Company) in Davenport, Iowa, are assumed to deliver their grain to a buyer in either Buffalo, Iowa, to the south or to a buyer in Clinton, Iowa, to the north. Calibration of Hotelling's framework to this situation leads to an estimated decline in grain bids of 1.5¢ per bushel for the buyer located in Clinton and by 2.5¢ per bushel for the buyer located in Buffalo. These estimates are based on an incremental transportation cost of 0.15¢ per mile between the seller's farm and the buyer. This price decline would reduce gross receipts of the farmers who currently deliver to Davenport by approximately $264,000 per year. The effect of lower price bids on gross receipts of all area farmers would be approximately $750,000 per year. Transportation costs would increase by an estimated $75,000 for those farmers who would have to haul their grain farther because of the closure.


2009 ◽  
Vol 21 (2) ◽  
pp. 49-63 ◽  
Author(s):  
Hokey Min

Since driver fatigue has known to be the primary cause of serious truck crashes, the Federal Motor Carrier Safety Administration (FMCSA) has attempted to implement new hours-of-service (HOS) regulations that aimed to promote safer driving environments. The new HOS regulations effective on October T‘ of2005, however, may lead to substantial cost increases for the trucking industry which will in turn hurt shippers and ultimately customers. For instance, motor carriers may need to hire additional drivers to comply with new HOS regulations requiring that drivers be placed out of service until they accumulated enough off-duty time. In particular, off-duty breaks required to refresh driving hours were increased to 10 consecutive hours from the old rule of eight cumulative hours. A chronic shortage of truck drivers coupled with new HOS regulations could further aggravate the driver recruitment and retention problems. In addition, due to potential loading/unloading delays and stiffer fines /penalties resulting from new HOS regulations, trucking productivity may decline. To help trucking firms cope with various challenges of new HOS regulations, this paper provides a systematic overview of prior literature that examines the impact of HOS on transportation productivity and safety in the U.S. It also discusses managerial implications of new HOS regulations.


1990 ◽  
Vol 17 (1) ◽  
pp. 28-35 ◽  
Author(s):  
B. G. Hutchinson ◽  
J. J. L. Mallett

The factors contributing to the line haul transportation costs of very large trucks operating on the Ontario highway system are calculated from fundamental tractive resistance equations and tractive effort characteristics for two "weigh-out" commodity types and representative haul routes. These calculated costs are compared with some observed costs and earlier analyses to check the validity of the models. The theoretical models are then used to assess the impact on operating costs of a variety of truck parameters which include truck type and tire pressures. The pavement damage created by the different truck types are estimated and the damage costs compared with the savings in line haul transportation costs. It is concluded that the pavement damage impacts of different truck types should be carefully compared with potential line haul transportation cost savings to ensure that allowable truck configurations are economically efficient with respect to both public and private costs. Key words: highway engineering, pavement damage, pavement cost, truck operating cost, vehicle weights.


Open Praxis ◽  
2020 ◽  
Vol 12 (1) ◽  
pp. 83
Author(s):  
Juliana Magro ◽  
Sara V Tabaei

This case study describes the library’s experience of collaborating with an undergraduate Psychology Department at Touro College to integrate open textbooks into their program. We discuss the pedagogical changes as well as explore the impact of Open Educational Resources (OER) on students’ savings, their academic outcomes and perceptions of OER. Furthermore, we highlight the successes and shortcomings in having the library as a central OER partner. To measure the results, we surveyed students and conducted a faculty survey and a focus group, in addition to analyzing the students’ final grades. This pilot program delivered strong results. The students’ perception was very positive, and faculty’s opinions on the textbooks used were mixed. Some professors felt that the textbook lacked important content, but because of its openness, they added their own content to the book. Students enrolled in OER courses performed better than those enrolled in the same courses using a commercial textbook.


Author(s):  
Brenda M. Lantz ◽  
Michael W. Blevins ◽  
Thomas J. Hillegass

The development and testing of the roadside Inspection Selection System (ISS) have been in progress for more than 2 years. The ISS was developed as part of the Aspen roadside inspection software system in response to a 1995 congressional mandate calling for use of prior carrier safety data to guide in selection of commercial vehicles and drivers to undergo roadside inspections. The Aspen system includes software that helps conduct roadside inspections with portable microcomputers. Ten states were involved in the initial testing of the ISS, but a majority of states throughout the United States are now using the system. An analysis of almost 40,000 inspections conducted in 1996 revealed that the vehicle out-of-service (OOS) rate was 33.7 percent for those vehicles the ISS recommended for inspection versus 20.0 percent for those it did not. The driver OOS rate was 13.5 percent for those drivers recommended for inspection versus 9.9 percent for those not recommended. The ISS will thus help in targeting relatively unsafe carriers (as well as those for which there are insufficient data) and reduce the inspection burden on carriers proved to be safe. This means that more efficient use will be made of scarce resources by focusing on less safe vehicles and drivers. In addition, use of the ISS offers substantial benefits to society in safety and to safe motor carriers in cost savings. Presentations of the system and results of an evaluation survey completed by inspectors show the ISS to be well accepted by both inspectors and the motor carrier community.


Author(s):  
Rocci Luppicini

Broadband commonly refers to Internet connection speeds greater than narrowband connection speed of 56kbs. Digital subscriber lines (DSL) and cable modems were the most popular forms of broadband in public use over the last 10 years. In 2004, over 80% of U.S. homes were equipped with cable modems, and up to 66% of U.S. households were able to receive DSL transmissions. It is expected that the impact of broadband technologies will continue to play an important role in the U.S. and the rest of the world. It is predicted that the number of broadband-enabled homes will exceed 90 million worldwide by 2007 (Jones, 2003). Canada and Korea currently are the two countries leading the way in broadband saturation. The following discussion focuses on the Canadian case of broadband development.


2021 ◽  
Author(s):  
Derrick Maurice Knox ◽  
Glennie E Leshen ◽  
Madeline Brianne Teisberg

ABSTRACT This paper is a brief description of the impact that the SARS-CoV-2 global pandemic has had on both mental health and U.S. Navy policies through the narrative of a deployed enlisted sailor, medically evacuated from Japan. Although the introduction of vaccines and loosening of state-specific mandates have signaled a slow return to our “normal,” pre-pandemic, way of life, there is now an opportunity to look back and understand how the situation impacted the presentation and outcome of certain cases. We believe that the sailor presented introduces a discussion about the impacts of heightened restrictions on some personality types. As the pandemic has continued to impact and reshape every facet of force health protection, we believe that understanding the impact of public health orders on individuals with specific personality disorders or traits will help us provide care and leadership counsel going forward. The discussion within our case report provides insight and an opportunity for healthcare providers to reflect.


2021 ◽  
Vol 5 (1) ◽  
pp. 01-09
Author(s):  
Fery Darus Nasution (Universitas Singaperbangsa) ◽  
Ade Momon S (Universitas Singaperbangsa) ◽  
Risma Fitriani (Universitas Singaperbangsa)

AbstractDistribution of products from the company's warehouse PT. MMM to consumers so far the company only uses estimates of consumers which will be passed in one shipment only by looking at the number of requests without considering the shipping routes and distance from the warehouse to the location of the consumer. This study aims to determine an effective shipping route using the saving matrix and nearest neighbor methods then find out distance savings and transportation cost savings. Comparison of the product distribution routes of PT. MMM after using the saving matrix method and the nearest neighbor method results in an effective and efficient route where the initial distribution route is 40 routes into 7 routes for 7 days of product distribution to consumers. The saving matrix method is applied. shows a reduction in the distance of the original shipment of 1,673.6 Km to 810.7 Km, thus obtained a savings of a distance of 862.9 Km. As well as a significant reduction in transportation costs where the initial cost of transportation of Rp. 4,478,448.- dropped to Rp. 3,675,951.-, so the company can save on transportation costs by Rp. 802,497.-.AbstrakRute pendistribusian produk dari gudang perusahaan PT. MMM  ke para konsumen  selama ini perusahaan hanya menggunakan perkiraan konsumen mana yang akan dilalui dalam satu kali pengiriman, yaitu hanya dengan melihat jumlah permintaan tanpa mempertimbangkan rute pengiriman dan jarak tempuh dari gudang ke lokasi konsumen. Penelitian ini bertujuan untuk menentukan rute pengiriman yang efektif menggunakan metode saving matrix dan nearest neighbor, kemudian mengetahui penghematan jarak serta penghematan biaya transportasi. Perbandingan rute distribusi produk PT. MMM dengan menggunakan metode saving matrix dan metode nearest neighbor menghasilkan rute yang efektif dan efisien dimana rute awal distribusi sebanyak 40 rute menjadi 7 rute untuk 7 hari pendistribusian produk ke konsumen. Dengan diterapkannya metode saving matrix menunjukan penurunan jarak tempuh pengiriman yang semula 1.673,6 Km menjadi 810,7 Km, dengan demikian didapatkan penghematan jarak sebesar 862,9 Km. Serta menurunkan biaya transportasi yang signifikan dimana biaya awal transportasi sebesar Rp. 4.478.448.- turun menjadi Rp. 3.675.951.-, sehingga perusahaan dapat menghemat biaya transportasi sebesar Rp. 802.497


2021 ◽  
Vol 64 (1) ◽  
pp. 161-175
Author(s):  
Joshua J. Jackson ◽  
Michael D. Montross

HighlightsTotal transportation costs were reduced by 32% to 63% with distributed biobutanol depots.An 8 km distance to the depot manifested the most desirable transportation costs.Across regions, biomass transport costs from field to depot were similar at equivalent distances.Abstract. The transportation efficiencies of centralized biomass processing facilities were compared to a proposed distributed preprocessing network with centralized refining facilities. Centralized biomass processing was defined as transport of baled corn stover directly from the field to the refinery. Distributed preprocessing with centralized refining was defined as transport of baled corn stover from the field to a biobutanol preprocessing depot and transport of completely dewatered crude biobutanol solution from the depot to a centralized refinery. For both systems, the locations of the corn fields, as identified through the cropland data layer, and of the refinery were fixed. For the distributed system, the biobutanol depot locations were variable and depended on different maximum transport distances (8 to 80 km) from the field to the depot. In this case study, site-specific transportation costs and biobutanol production capacities were developed for different agricultural regions in Kentucky. The distributed system produced a 32% to 63% reduction in total transportation cost with decreased (50% to 90%) fuel use as compared to the centralized system. The GIS transportation model demonstrated that on-farm biofuel production could be an effective means of producing biofuel and reducing transportation costs. Keywords: Biomass transport, Depot, Distributed biomass collection, GIS location-allocation, Minimize facilities, Satellite facilities.


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