The Cost of Shipping Commodities

Quarterly Reports Other Documents Final Report
March 2009
June 2009
September 2009
Introduction to Container Shipping  Final Report

Primary Investigator

Mathew Petering
Department of Industrial and Manufacturing Engineering
University of Wisconsin – Milwaukee
EMS E367
3200 North Cramer Street
Milwaukee, WI 53211
mattpete@uwm.edu

Abstract

Transportation planners and policy makers do not have the ability to estimate the cost of shipping a quantity of a commodity between two locations. Yet, costs of shipping are important components in mode, route, and location choice processes. Cost of shipping relates to logistics practices of businesses, and these practices have been changing rapidly in recent years. A solid understanding of these costs will aid public sector decision-makers in determining the economic benefits of infrastructure improvements or determining the impacts on the private sector of various policies and operational strategies. This research will use the inventory cost model to evaluate the data with shipment cost information, build a cost model for one mode and for several varied commodities carried by that mode.

Objectives

To develop a cost model to estimate the cost of shipping a quantity of a commodity between two locations which will aid public sector decision makers in determining the economic benefits of infrastructure improvements or determining the impacts on the private sector of various policies and operational strategies.

Tasks

  1. Inventory cost models that have been used in the past and evaluate the availability of data sets containing shipment cost information.
  2. Build a cost model for one mode and for several varied commodities carried by that mode.

Project Information

  • Duration: 24 months
  • Dates: October 1, 2007 – September 30, 2009
  • Budget: CFIRE: $50,000; Total: $100,000
  • Student Involvement: One graduate student
  • Modal Orientation: Highway
  • Project ID: CFIRE 02-30
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