Scandinavian Working Papers in Economics

Working Papers,
Swedish National Road & Transport Research Institute (VTI)

No 2024:5: Estimating the impact of transport costs on firms’ choice of transport chain and shipment size

Kristofer Odolinski () and Karin Ek ()
Additional contact information
Kristofer Odolinski: Swedish National Road and Transport Research Institute (VTI), Postal: VTI, Dept. of Transport Economics, P.O. Box 55685, SE-102 15 Stockholm, Sweden
Karin Ek: Swedish National Road and Transport Research Institute (VTI), Postal: VTI, Dept. of Transport Economics, P.O. Box 55685, SE-102 15 Stockholm, Sweden

Abstract: Multinomial logit models of firms’ choice of transport chain and shipment size are estimated for 16 commodity groups. The estimations are based on the Swedish Commodity Flow Survey (CFS) for 2016 and 2021 with choice data for individual shipments. The CFS is combined with cost and transport time data from the Swedish national freight transport model, Samgods, in order to estimate the impact of transport costs on firms’ transport chain and shipment size choice. Empirical midpoints of shipment sizes are included in the estimations such that the impact of ordering cost and holding cost are considered, which influences the transport cost estimates. Overall, results show that transport costs have a statistically significant impact on firm’s choice of transport, and the impact varies with respect to commodity group.

Keywords: Stochastic freight model; Disaggregate freight model; Freight mode choice; Transport chain; Shipment size; Commodity flow survey

JEL-codes: R41

Language: English

28 pages, September 9, 2024

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