Publication:
Estimating Road Freight Transport Costs in Eastern Europe and Central Asia Using Large Shipping Data

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dc.contributor.authorIimi, Atsushi
dc.date.accessioned2023-08-02T20:27:35Z
dc.date.available2023-08-02T20:27:35Z
dc.date.issued2023-08-02
dc.description.abstractThe recent global crises, such as the COVID-19 crisis, remind us of the importance of efficient transportation and logistics. Notably, however, even before the crises, some regions were already experiencing a gradual increase in freight costs, with more and more empty trucks observed. The paper recasts light on the question of how road freight costs are determined using large, unique shipping data from Eastern European and Central Asian countries. It finds that economies of scale are significant in both freight weight or load factor and distance. The elasticity with respect to freight weight is particularly high at about 0.3 to 1.0 in absolute terms. Thus, to contain trucking costs, it is important to maximize the load factor through freight consolidation at origins and destinations. The elasticity with respect to distance is relatively modest at 0.04 to 0.16 in absolute terms but still statistically significant, indicating that distance may not necessarily be a constraint on trade and regional integration. Trucking costs also decrease with driving speed, a proxy for efficiency of movements or road conditions. The elasticity is significant for food products (−0.03) and other consumer goods (−0.11). Finally, the paper finds that border crossing adds 3–4 percent to freight costs.en
dc.identifierhttp://documents.worldbank.org/curated/en/099542207312319005/IDU0e82b93e00034b0458f09ed203c7e2ad23763
dc.identifier.doi10.1596/1813-9450-10533
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40142
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10533
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectROAD FREIGHT RATES
dc.subjectSHIPPING COST INCREASE
dc.subjectREGIONAL INTEGRATION
dc.subjectSHIPPING CHARGE ELASTICITY
dc.subjectSUPPLY CHAIN
dc.titleEstimating Road Freight Transport Costs in Eastern Europe and Central Asia Using Large Shipping Dataen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleEstimating Road Freight Transport Costs in Eastern Europe and Central Asia Using Large Shipping Data
okr.date.disclosure2023-07-31
okr.date.lastmodified2023-07-31T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099542207312319005/IDU0e82b93e00034b0458f09ed203c7e2ad23763
okr.guid099542207312319005
okr.identifier.docmidIDU-e82b93e0-034b-458f-9ed2-3c7e2ad23763
okr.identifier.doi10.1596/1813-9450-10533
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10533
okr.identifier.externaldocumentum34127179
okr.identifier.internaldocumentum34127179
okr.identifier.reportWPS10533
okr.import.id1372
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099542207312319005/pdf/IDU0e82b93e00034b0458f09ed203c7e2ad23763.pdfen
okr.region.geographicalCentral Asia
okr.region.geographicalEastern Europe
okr.sectorOther Transportation
okr.themeUrban Infrastructure and Service Delivery,Data Development and Capacity Building,ICT,Economic Policy,ICT Solutions,Economic Growth and Planning,Public Transport,Private Sector Development,Regulation and Competition Policy,Public Sector Management,Urban and Rural Development,Business Enabling Environment,Data production, accessibility and use,Spatial Growth,Urban Development
okr.topicInternational Economics and Trade::Trade and Transport
okr.topicRural Development::Rural Roads & Transport
okr.topicInternational Economics and Trade::Customs and Trade
okr.unitITRGK - Global Knowledge (ITRGK)
okr.unitTransport-So. Africa + Ethiopia (IAET2)
relation.isAuthorOfPublicationeeef1beb-b651-587f-bb16-a47ff170a096
relation.isAuthorOfPublication.latestForDiscoveryeeef1beb-b651-587f-bb16-a47ff170a096
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