Modeling net rates for expedited freight services |
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| Affiliation: | 1. South Ural state university, 76, Lenin Avenue, Chelyabinsk, 454080, Russia;2. South Ural state agrarian university 75, Lenin Avenue, Chelyabinsk, 454080, Russia;1. Department of Logistics Management, School of Economics and Management, Beijing Jiaotong University, Beijing, 100044, China;2. Department of Logistics and Maritime Studies, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR;3. Logistics School, Beijing Wuzi University, Beijing, 101125, China;1. College of Transport and Communications, Shanghai Maritime University, Shanghai 201306, China;2. Center for Polymer Studies and Department of Physics, Boston University, Boston, MA 02215, USA;3. School of Mathematical Science, Nanjing Normal University, Nanjing 210042, Jiangsu, China;4. Department of Mathematics, Nanjing Normal University Taizhou College, Taizhou 225300, Jiangsu, China |
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| Abstract: | We demonstrate the development, testing and application of statistical models to study actual billings (net of discounts) for expedited freight services. The models reveal the structure of net tariffs. They enable carriers to identify customers whose revenues are deficient considering services rendered, and terminals where revenues are deficient considering their mix of business. The models thus point to situations where business activities, pricing structures or negotiated discounts need review. The models also verify that the overwhelming determinants of monthly charges to shippers are the fundamental cost drivers for the industry, namely number of shipments, weight of shipments, and distance shipped. |
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