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Title:

Examining Drivers of Rail Transport Rates over Time: Econometric Analysis
Cover of Examining Drivers of Rail Transport Rates over Time: Econometric Analysis

Accession Number:

01632155

Record Type:

Component

Abstract:

Trends in freight rail transportation rates have been the subject of numerous studies over the past 40 years. However, little effort has been invested in modeling the evolution of rate determinants (shipment characteristics that impact rates) over time. This paper addresses this shortcoming by analyzing trends in rail transportation rate determinants using the Surface Transportation Board (STB) carload waybill sample (CWS) data. The CWS includes millions of individual shipments between 2001 and 2014. The rate determinants examined include length of haul, route density, shipment size, railroad interchanges, season of the year, railcar ownership, import vs. domestic vs. export, region of the country, and commodity. In order to examine how these rate determinants changed and/or fluctuated over the past fifteen years, the authors segment the data by year and commodity. Then the authors run separate OLS regression models for each year-commodity segment. The results of the analysis indicate that the impact of various determinants on rates changed significantly between 2001 and 2014; moreover, the changes were not consistent across commodities. For example, for the average shipment, rates for large shipments fluctuated and increased, relative to small shipments; however, for grain shipments, rates were nearly the same for 6-49, 50-90, and 90+ carload shipments between 2009 and 2014. The methodology and results presented in this paper provide valuable information on the relative differences in rates for various shipment types. This information can be utilized by railroads, railroad regulators, and especially shippers using rail transportation.

Supplemental Notes:

This paper was sponsored by TRB committee AT010 Standing Committee on Freight Transportation Economics and Regulation.

Monograph Accession #:

01618707

Report/Paper Numbers:

17-02300

Language:

English

Corporate Authors:

Transportation Research Board

500 Fifth Street, NW
Washington, DC 20001 United States

Authors:

Hyland, Michael F
Bou Mjahed, Lama
Mahmassani, Hani S

ORCID 0000-0002-8443-8928

Pagination:

22p

Publication Date:

2017

Conference:

Transportation Research Board 96th Annual Meeting

Location: Washington DC, United States
Date: 2017-1-8 to 2017-1-12
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

Figures; References; Tables

Subject Areas:

Economics; Freight Transportation; Railroads

Source Data:

Transportation Research Board Annual Meeting 2017 Paper #17-02300

Files:

PRP, TRIS, TRB, ATRI

Created Date:

Dec 8 2016 10:52AM