A COMPARISON OF FREIGHT TRANSPORTATION CARRIER COSTS AND RATES CHARGED

Much speculation has centered on how freight rates compare to the carriers' cost of providing service. This report describes a study of the issue which utilizes models developed by Morlock and Warner to approximate the ICC's cost tables and models developed by the author to approximate freight rates. Graphs are presented comparing carrier cost and rates for a variety of distances, shipment sizes, and commodities for rail carload, truck, and trailer-on-flatcar modes. The results suggest some hypotheses about the profitability of different types of traffic.

• Supplemental Notes:
  • Prepared for U.S. Department of Transportation, Office of University Research, Analysis of Freight Markets.
• Corporate Authors:

  Massachusetts Institute of Technology

  Center for Transportation Studies, Room 1121
  Cambridge, MA  United States  02139
• Authors:
  • SAMUELSON, R D
• Publication Date: 1977-2

Media Info

• Features: Appendices; Figures; References;
• Pagination: 23 p.

Subject/Index Terms

• TRT Terms: Analysis; Competition; Costs; Mathematical models; Motor carriers; Piggyback transportation; Profitability; Rate making; Transportation modes
• Identifier Terms: U.S. Interstate Commerce Commission
• Uncontrolled Terms: Cost analysis
• Subject Areas: Economics; Finance; Motor Carriers; Railroads;

Filing Info

• Accession Number: 00174354
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Report/Paper Numbers: CTS-77-2
• Contract Numbers: DOT-OS-50112
• Files: TRIS
• Created Date: May 18 1978 12:00AM