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Quick Response Freight Manual-Final Report

2.0 Factors Affecting Freight Demand

Table 2.1 - Demand Factors vs. Freight Characteristics

FACTORS The Economy Industrial Location Patterns Global- ization of Business Inter- national Trade Agreements Inter- national Transpor- tation Agreements Just-in- Time Inventory Practices Carrier- Shipper Alliances Centralized Warehousing Packaging Materials Recycling Economic Regulat- ion / Deregulat- ion Inter- modal Operating Agree- ments Fuel Prices Publicly- Provided Infra- structure User Charges and
Other Taxes
Govern- ment Subsidiza- tion of Carriers Environ- mental Policies and Restrict- ions Safety Policies and Restrict- ions Changes in Truck Size and Weight Limits Congest- ion Techno- logical Advances
  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
FREIGHT CHARACTERISTICS
Commodity
Commodity Type (e.g. SIC Code) X X X X         X X X     X     X X X   X
Weight X   X X   X     X   X     X X       X   X
Volume X   X X   X   X X   X   X   X       X   X
Value X   X X           X X       X           X
Perishability (shelf-life)   X X X   X                           X X
Storage space requirements X   X X   X   X X     X                 X
Degree of Hazard       X             X     X X   X X     X
Shipment
Line haul miles X X X X X     X   X X X X X X           X
Miles per number of stops X X X X X     X   X X X   X             X
Mode
Cube limit     X X X       X   X X   X X       X   X
Weight limit     X X X       X   X X   X X       X   X
Suitability for hazardous materials     X X X           X     X X   X X     X
Line-haul costs (per shipment or per mile)   X X X X X X X     X X X X X X X X X X X
Pickup costs (per shipment or per mile)   X X X X X X X     X X X X X X X X X X X
Delivery costs (per shipment or per mile)   X X X X X X X     X X X X X X X X X X X
Wait time   X X X X X X X     X X   X           X X
Travel time   X X X X X X X     X X   X     X X   X X
Reliability   X X X X X X X     X X   X           X X
Probability of loss and damage claim     X X X X X X X   X X   X     X X     X
Load ratio     X X X X     X   X X   X         X   X
Logistics Costs
Order costs     X X X   X X     X X     X X X   X X X
Loading and unloading costs   X X X X   X X     X X     X X X X X X X
In-transit capital carrying cost   X X X X   X       X X     X X X X X X X
In-storage capital carrying costs     X X X X X X     X X     X X   X     X
Storage cost     X X X X X X     X X   X X X         X
Shelf loss in transit   X X X X   X       X X     X X         X
Cost of filing loss and damage claims     X X X   X X     X X     X X X X     X
Capital carrying cost on loss and damage     X X X   X       X X     X X X X   X X
Carrying cost for safety stock     X X X   X       X X     X X X X   X X
Emergency shipment cost   X X X X   X       X X X X X X   X   X X