Understanding Mode Choice Decisions: A Study of Australian Freight Shippers

This article will examine the Australian domestic freight transport market and focus on the decision-making process by which cargo interests and their agents make mode choice allocation decisions between land-based transport and coastal shipping. The paper evaluates the willingness to pay (WTP) for various attributes of modal options on specific transport corridors. This understanding helps to lay the groundwork for being able to assess the likely impact of changes to transport prices arising from the introduction of carbon pricing or other regulatory factors. Reporting the results of a stated choice experiment, this article identifies and quantifies freight shippers’ preferences for components of services offered by freight transport providers across modes with distinct characteristics in three corridors. The distinct characteristics are mixes of speed (transit time), frequency of departure, reliability (two measures) and cost. There are seven variables examined in this paper: frequency, transit time, freight distance, direction (headhaul/backhaul), reliability as measured by delivery window, reliability as measured by delay and price offered by the operator. The article concludes by providing guidance on what trade-offs are relevant in shippers’ choice of mode on the specific corridors under investigation in a more complex mode choice model than explored in previous research. The article also examines what will likely happen if price rises as a result of carbon pricing regulation.

Language

  • English

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Filing Info

  • Accession Number: 01444809
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 31 2012 9:02AM