This study of the Philadelphia drayage market--delivery of intermodal trailers which were handled by railroad piggyback for the intercity portion of their trips--was made to investigate the local handling charges in the wake of deregulation. It was found that this local market should have many of the characteristics of a perfectly competitive market--many participants, free entry, limited capital and low skill requirements--was not performing competitively. The ingredient missing from the perfect competition theory was full knowledge. Railroads and shippers did not understand the market, feeling that all rates would be relatively uniform. Local haulers were unaware of their competitors' charges and too busy driving to determine such rates. A drayage guide was published to enable carriers to compare local rates and share as a benchmark for negotiation with railroads. The relationship between intermodal participants had actually tended to keep drayage charges well in excess of costs. The reception to the drayage guide has been positive for all participants.

Media Info

  • Features: Figures; Photos;
  • Pagination: p. 26-29
  • Serial:
    • TR News
    • Issue Number: 113
    • Publisher: Transportation Research Board
    • ISSN: 0738-6826

Subject/Index Terms

Filing Info

  • Accession Number: 00390132
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Oct 30 1984 12:00AM