The economics of many types of freight transportation services have been difficult to analyze, since demand for a service will depend on the rates and level of service offered by the carrier while carrier costs for maintaining a given level of service will vary with demand for the service. It is thus difficult to determine whether to offer a service, and what rate and level of service to maintain if the service is offered. This study shows how an equilibrium approach, involving the use of both demand and cost models, may be used to analyze such situations. The equilibrium approach is applied to analyze the feasibility of a T.O.F.C. "Shuttle Train" service between three city pairs. This type of service, using dedicated equipment in run-through trains, could offer shippers improved TOFC service, with a potential cost savings to the carriers. The analysis used a freight demand model developed for this study. The results suggest that such a shuttle service could not be operated profitably on a fully allocated cost basis between Los Angeles and San Francisco, and could be operated profitably on a fully allocated cost basis between Philadelphia and Cleveland or between Chicago and Houston only with the adoption of two-man crews. Several important uncertainties in these results are noted, however.

  • Supplemental Notes:
    • Prepared for U.S. Department of Transportation, Program 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:
    • Roberts, P O
  • Publication Date: 1977-6

Media Info

  • Features: Appendices; Figures; Tables;
  • Pagination: 80 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00174358
  • Record Type: Publication
  • Source Agency: Massachusetts Institute of Technology
  • Report/Paper Numbers: CTS-77-9
  • Contract Numbers: DOT-OS-50112
  • Files: TRIS
  • Created Date: May 18 1978 12:00AM