Freight Demand Management and the Potential of Receiver-Led Consolidation Programs

Journal article, 2016

The paper defines the field of Freight Demand Management (FDM), and positions it as an important component of transportation policy and management. To establish the rationale for FDM, the paper studies the effects of the agent interactions at the core of supply chains, and identifies the important role played by the receivers of supplies in determining when and how deliveries are made. The paper classifies the various modalities of FDM, and summarizes the real-life experiences of their implementation. To illustrate the potential of FDM, the paper analyzes Receiver-Led Consolidation (RLC) programs. The paper provides background on consolidation programs, and estimates a behavioral model to shed light on the factors explaining receivers’ interest in cargo consolidation. The resulting model is used to estimate expected participation in a RLC program in New York City. These results are complemented with freight-trip generation analyses, and a behavioral micro-simulation to estimate potential reductions in freight traffic and vehicle-miles-traveled. The results show that RLC programs could bring significant benefits to large metropolitan areas, reducing freight vehicle-miles-traveled and congestion levels.