Economic costs of air cargo flight delays related to late package deliveries

Yulin Liu, Mogeng Yin and Mark Hansen

Transportation Research Part E: Logistics and Transportation Review, 2019, vol. 125, issue C, 388-401

Abstract: We consider the cost of air cargo flight delay related to late package deliveries, which has received scant attention in previous research. We developed two models to estimate the costs of flight delay. First, we estimate a mixed-logit model to investigate the factors that influence late deliveries, with specific emphasis on flight on-time performance. Then we build a regression model to monetize the loss of late deliveries, using the hedonic approach to estimate the degradation in product value resulting from less reliable on-time package delivery. Estimates of flight delay costs for four representative US airports range from $8000 to $38,000 per flight-hour, with an average of about $20,000, which is roughly three times the direct operating cost per block-hour for air cargo flights estimated by GRA (2007), and also much higher than the unit flight delay cost related to passenger delay.

Keywords: Costs of flight delay; Air cargo carrier; Late delivery costs; Mixed logit model; Hedonic pricing model; Monte Carlo simulation (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554518307142
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:125:y:2019:i:c:p:388-401

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2019.03.017

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().