Cost of Operating Trucks for Livestock Transportation

Patrick P. Boles

No 312421, Marketing Research Reports from United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program

Abstract: This report uses synthetic cost analysis to develop cost per mile of operating a livestock truck for trips of different constant lengths and for specific mixtures of trip lengths. The effect of four variables--seasonality of livestock movement, constraints on the number of daily trips, level of backhaul, and level of utilization of revenue equipment--on cost per vehicle mile is shown. Cost per mile decreases as trip length and yearly mileage increase. For longer trips and higher mileages, most of the cost decrease is due to the spreading of fixed cost over a larger number of miles. Costs in this report are based on estimated costs for a model 10-truck firm, developed from information on operations and costs in 1970 obtained from nine livestock trucking firms.

Keywords: Labor and Human Capital; Livestock Production/Industries; Marketing (search for similar items in EconPapers)
Pages: 34
Date: 1973-01
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uamsmr:312421

DOI: 10.22004/ag.econ.312421

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