Lane-Exchange Mechanisms for Truckload Carrier Collaboration

Okan Örsan Özener (), Özlem Ergun () and Martin Savelsbergh ()
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Okan Örsan Özener: Ozyegin University, 34662 Istanbul, Turkey
Özlem Ergun: H. Milton Stewart School of Industrial & Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332
Martin Savelsbergh: CSIRO Mathematics, Informatics, and Statistics, North Ryde, NSW 1670, Australia

Transportation Science, 2011, vol. 45, issue 1, 1-17

Abstract: Because of historically high fuel prices, the trucking industry's operating expenses are higher than ever and thus profit margins are lower than ever. To cut costs, the trucking industry is searching for and exploring new ideas. We investigate the potential of collaborative opportunities in truckload transportation. When carriers serve transportation requests from many shippers, they may be able to reduce their repositioning costs by exchanging one or more of them. We develop optimization models to determine the maximum benefit that can be derived from collaborating. We also develop various exchange mechanisms which differ in terms of information sharing requirements and side payment options that allow carriers to realize some or all of the costs savings opportunities.

Keywords: carrier collaboration; truckload shipping; lane-covering problem; lane exchanges (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (30)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:45:y:2011:i:1:p:1-17

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