Given the information in Example 4.1, you can clearly imagine that there are a variety of choices available to you in terms of carriers that can be hired to move freight shipments on the Oakland-Atlanta lane. For the sake of simplicity
in getting started, let us first consider moving the goods on the OaklandAtlanta lane via truck, or ''motor carrier." From the analysis presented in Kay and Warsing (2009), the average price charged by a carrier to move goods via a dedicated truck commonly called truckload service, or ''TL'' in 2004 was approximately $2.00/mi. To put this estimate in terms that will aid in comparisons we make throughout the chapter, and continuing to use estimation methods suggested by Kay and Warsing (2009), we adjust this estimated TL freight cost to a more current level by multiplying it by the ratio of Producer
Price Index values for ''General freight trucking, long-distance, TL'' (BLS,
2011a) for 2004 and 2010, yielding
Given the information in Example 4.1, you can clearly imagine that there are a variety of choices available to you in terms of carriers that can be hired to move freight shipments on the Oakland-Atlanta lane. For the sake of simplicityin getting started, let us first consider moving the goods on the OaklandAtlanta lane via truck, or ''motor carrier." From the analysis presented in Kay and Warsing (2009), the average price charged by a carrier to move goods via a dedicated truck commonly called truckload service, or ''TL'' in 2004 was approximately $2.00/mi. To put this estimate in terms that will aid in comparisons we make throughout the chapter, and continuing to use estimation methods suggested by Kay and Warsing (2009), we adjust this estimated TL freight cost to a more current level by multiplying it by the ratio of ProducerPrice Index values for ''General freight trucking, long-distance, TL'' (BLS,2011a) for 2004 and 2010, yielding
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