Andreas Norrman
Professor
Modal Shift for Greener Logistics - Exploring the Role of the Contract
Författare
Summary, in English
Purpose
This paper investigates contracts of the intermodal transport market and the incentives they create for a modal shift and thus the financial and environmental efficiency of freight transport.
Design/methodology/approach
The research used a mixed-methods approach where qualitative case interviews and quantitative modeling was combined. Two cases of contractual relationships between a service provider and its intermodal train operator on a specific lane were investigated. The case findings were then consolidated and used as input for a model of the contractual relation. Findings were sought through an extensive numerical study.
Findings
The cases reported that intermodal rail operators had a strong production focus, transferring the capacity risk (i.e. the risk of unused capacity) to the service provider, which the service providers argued limited the shift from truck to intermodal transportation. We show that, due to the market structure, it is rational for the operator to transfer the capacity risk but not the profit. Consequently, a modal shift is only likely to occur when there is strong shipper pressure or low capacity risk. We present a risk-sharing contract that could potentially release this dead lock.
Research limitations/implications (if applicable)
The conclusions are modelling outcomes subject to assumptions based on the cases. For further validation, large-scale quantitative studies are necessary.
Practical Implications (if applicable)
We show that a three-part tariff in which the capacity risk is shared may lead to increased modal shift and hence assumed improved environmental performance.
Social implications (if applicable)
Instead of arguing for operators to be more customer-focused, policy-makers and other stakeholders may have more to gain by having both actors being more cooperation-focused.
Original/value
The paper is the first attempt to quantify how the contractual relations on the freight transport market affect the modal mix and thus the financial and environmental efficiency of freight transport.
This paper investigates contracts of the intermodal transport market and the incentives they create for a modal shift and thus the financial and environmental efficiency of freight transport.
Design/methodology/approach
The research used a mixed-methods approach where qualitative case interviews and quantitative modeling was combined. Two cases of contractual relationships between a service provider and its intermodal train operator on a specific lane were investigated. The case findings were then consolidated and used as input for a model of the contractual relation. Findings were sought through an extensive numerical study.
Findings
The cases reported that intermodal rail operators had a strong production focus, transferring the capacity risk (i.e. the risk of unused capacity) to the service provider, which the service providers argued limited the shift from truck to intermodal transportation. We show that, due to the market structure, it is rational for the operator to transfer the capacity risk but not the profit. Consequently, a modal shift is only likely to occur when there is strong shipper pressure or low capacity risk. We present a risk-sharing contract that could potentially release this dead lock.
Research limitations/implications (if applicable)
The conclusions are modelling outcomes subject to assumptions based on the cases. For further validation, large-scale quantitative studies are necessary.
Practical Implications (if applicable)
We show that a three-part tariff in which the capacity risk is shared may lead to increased modal shift and hence assumed improved environmental performance.
Social implications (if applicable)
Instead of arguing for operators to be more customer-focused, policy-makers and other stakeholders may have more to gain by having both actors being more cooperation-focused.
Original/value
The paper is the first attempt to quantify how the contractual relations on the freight transport market affect the modal mix and thus the financial and environmental efficiency of freight transport.
Avdelning/ar
- Teknisk logistik
Publiceringsår
2014
Språk
Engelska
Sidor
721-743
Publikation/Tidskrift/Serie
International Journal of Physical Distribution & Logistics Management
Volym
44
Issue
10
Dokumenttyp
Artikel i tidskrift
Förlag
Emerald Group Publishing Limited
Ämne
- Transport Systems and Logistics
Nyckelord
- Green Logistics
- Modal Shift
- Intermodal Transportation
- Contracting
- Service Providers
- Sustainability
- Risk Sharing
- Incentive Alignment
Status
Published
ISBN/ISSN/Övrigt
- ISSN: 0960-0035