Current and Developing Issues in Interregional Competition and Agricultural Transportation

Johnson, Marc A.

doi:10.1017/s0081305200024560

J. Agric. Appl. Econ.

1981

DOI: 10.1017/s0081305200024560

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Current and Developing Issues in Interregional Competition and Agricultural Transportation

Marc A. Johnson

Abstract: This paper identifies current and developing issues in interregional competition and agricultural transportation. These topics are related to the extent that the cost and quality of transportation services is one major determinant of the economic distance between regions.Interregional competition analysis was introduced to agricultural economics in the late 1930s, with the stimulus of agricultural research funds authorized by the Bankhead-Jones Act of 1935, under the leadership of Sherman E. Johnson and John D… Show more

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Cited by 3 publications

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“…Transportation costs are customarily assumed to be invariate over extended periods of time or the volumes which are shipped. Obviously such models "reveal little about the agricultural transport market composed of carriers as suppliers, and agricultural shippers and receivers as demanders" (Johnson (1981)). This tangential treatment of the costs of transiting space seems incredible considering that the focus of the work is to explain economic activity across space.…”

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Explaining Truck Rate Variations for Produce Shipped to the Northeast

Beilock

Koburger

Morgan

1984

J. Northeast. Agric. Econ. Counc.

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Models are developed to examine the determinants of weekly truck rates for produce shipped to the Northeast from California and Florida. In the empirical work, a large proportion of the variation in rates is explained and the estimated parameters are generally consistent with a priori expectations. The total quantity of produce shipped from each state, the proportion of this total which is compatible with the commodity in question, and the F.O.B. price if the commodity were found to be the most important determinants of truck rate levels. Fuel costs have a surprisingly weak influence, at least in the short run, and for Florida origin commodities the truck rate-fuel cost relationship appears to have weakened over the 1979–1983 sample period.

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Explaining Truck Rate Variations for Produce Shipped to the Northeast

Beilock

Koburger

Morgan

1984

J. Northeast. Agric. Econ. Counc.

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Analysis of Transportation Economics of Sugar-beet production in the Red River Valley of North Dakota and Minnesota using Geographical Information System

Farahmand¹,

Dharmadhikari²,

Khiabani³

2013

Journal of Renewable Agriculture

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The Determinants of Full‐Empty Truck Movements

Beilock

Kilmer

1986

American J Agri Economics

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A model is developed to explain full-empty movement decisions for motor carriers. The model is estimated for movements to Florida of carriers serving the Florida produce/ornamentals industry. The results indicate that carriers act rationally, basing their decisions on a wide range of factors. The findings also suggest that regulatory restrictions continue to result in unnecessary empty movements.Transportation rates playa crucial role in the determination of economic activity over time and space. Despite this fact, relatively little attention has been devoted to understanding transportation markets. Indeed, it is common in interregional trade modeling to treat transportation supply as perfectly elastic. This tangential treatment of transportation markets has been identified as a major reason for the failure of many, if not most, interregional trade models to reflect adequately the economic activity being depicted (Johnson, p. 63). This article describes a study which focuses on understanding one aspect of these markets: the determinants of full/empty movement decisions. The results help to explain seasonal swings in rate levels, why some rates taper (i.e., increase at a decreasing rate) with distance, the impact of regulatory controls, and the role of expectations in carrier decision making.It is recognized that jointness in the production of transportation services favors full movements. If a vehicle goes from point ito pointj, the marginal cost of obtaining and carrying a load is the cost of search, pickup, and delivery, and the increment in fuel and labor costs over those for running empty (Mohring,. This increment is generally small when compared to total running costs. ThereRichard Beilock and Richard L. Kilmer are an assistant professor and an associate professor, respectively, Food and Resource Economics Department, University of Florida. Authors are listed in alphabetical order; senior authorship is not assigned. This is Florida Agricultural Experiment Station Journal Series No. 6483.Review was coordinated by Peter Heimberger, associate editor.fore, a large share of the transportation costs becomes a fixed cost which does not influence the carrier's full-empty movement decision process (Jara-Diaz). Despite this inducement to avoid empty movements, considerable empty movements are still observed. The Interstate Commerce Commission (lCC) found that over 20% of refrigerated trailers on interstate highways were empty (ICC, p. 12), and the estimates for specialized equipment (e.g., tank truck and bulk goods carriers) ranged as high as 40%. Empty mileage may result from restrictions in the regulatory system, be unavoidable due to freight imbalances between regions, or simply reflect carriers foregoing loads to maximize returns at another location (Paxson, Miller, and Basemann and Daugherty). However, there has been little empirical work to quantify the importance of these factors. In this article, a model is developed to explain full-empty movement decisions of motor carriers. The empirical estimation of the m...

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Current and Developing Issues in Interregional Competition and Agricultural Transportation

Cited by 3 publications

References 32 publications

Explaining Truck Rate Variations for Produce Shipped to the Northeast

Explaining Truck Rate Variations for Produce Shipped to the Northeast

Analysis of Transportation Economics of Sugar-beet production in the Red River Valley of North Dakota and Minnesota using Geographical Information System

The Determinants of Full‐Empty Truck Movements

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