ILMA Compoundings June 2017 - 24
Some research has been conducted
previously regarding the connections
between truckload service and carrier
acceptance rates.1 As recently as 2016,
there was no research quantifying
whether multistop truckload actually
affects what a shipper pays in its line
haul rate in terms of rate per mile. Nor
had research been done on whether
increasing the amount paid per stop
has any effect on the rate per mile. The
complexity of these interrelated factors
and the potential implications of multistop truckloads on shippers' budgets
made this an attractive thesis project.
Graduate students Xiaojia (Amy)
Chen and Shang lin (Peter) Tsai Yang
at MIT's Center for Transportation
& Logistics (MIT CTL) worked with
their thesis advisor, Dr. Chris Caplice,
to investigate. The researchers analyzed
historical data from more than 5 million truckload and multistop truckload tender records collected over a
2.5-year period by TMC, a division of
C.H. Robinson. The records included
tender and shipment information for
24
JUNE 2017
| COMPOUNDINGS | ILMA.ORG
more than 4,000 carriers and 190
shippers. The scope was limited to
dry van loads in the continental U.S.
traveling more than 250 miles.
They looked at actual acceptance
rates and pricing for multistops, along
with associated factors that affect
them. What they found leads to new
ideas that can help shippers improve
their rates for multistop loads.
What early analysis shows
about multistop truckloads
As noted, the researchers did look at
multiple pickups. However, multipicks
were found to cost less than multiple
drops because in this data set, inbound
vendors tended to be clustered more
closely together. The research and
modeling found destination to be
more influential on price than origin,
and the analysis focused on this area.
Generally, the researchers found
three common scenarios that resulted
in shippers paying higher prices for
multistop truckload:
* Additional stops. Adding extra
stops simultaneously decreases the
acceptance rate and increases the
price. The magnitude of the effects increases with the number of
stops. On average, one additional
drop costs about $300 more than
market rate.
* More out-of-route miles. The
research showed that the more
out-of-route miles there were, the
higher the price to the shipper
and the less likely carriers were
to accept the shipment tender.
In this data set, shippers paid an
average of $1.37 per mile. Routes
that deviated significantly from
the straight line distance between
origin and destination were
charged an extra $0.20 per outof-route mile, over and above the
rate per mile.
* More demand in the market for
trucks. When there is more
volume in a week, or more demand
for truckloads, the price for
http://www.ILMA.ORG
ILMA Compoundings June 2017
Table of Contents for the Digital Edition of ILMA Compoundings June 2017
Letter From the President
Letter From the CEO
Inside ILMA
What's Coming Up
Industry Rundown
In the Know
International Insight
Market Report
Lubricant Manufacturers Heed New Safety Regulations
Finding a Balance
Making the Most of Your Data Management
Business Hub
Counsel Compound
Washington Landscape
In Network
Member Connections
Cross Connections
Portrait
ILMA Compoundings June 2017 - Cover1
ILMA Compoundings June 2017 - Cover2
ILMA Compoundings June 2017 - 1
ILMA Compoundings June 2017 - 2
ILMA Compoundings June 2017 - Letter From the President
ILMA Compoundings June 2017 - 4
ILMA Compoundings June 2017 - Letter From the CEO
ILMA Compoundings June 2017 - Inside ILMA
ILMA Compoundings June 2017 - 7
ILMA Compoundings June 2017 - What's Coming Up
ILMA Compoundings June 2017 - 9
ILMA Compoundings June 2017 - Industry Rundown
ILMA Compoundings June 2017 - In the Know
ILMA Compoundings June 2017 - International Insight
ILMA Compoundings June 2017 - 13
ILMA Compoundings June 2017 - Market Report
ILMA Compoundings June 2017 - 15
ILMA Compoundings June 2017 - Lubricant Manufacturers Heed New Safety Regulations
ILMA Compoundings June 2017 - 17
ILMA Compoundings June 2017 - 18
ILMA Compoundings June 2017 - 19
ILMA Compoundings June 2017 - 20
ILMA Compoundings June 2017 - 21
ILMA Compoundings June 2017 - Finding a Balance
ILMA Compoundings June 2017 - 23
ILMA Compoundings June 2017 - 24
ILMA Compoundings June 2017 - 25
ILMA Compoundings June 2017 - Making the Most of Your Data Management
ILMA Compoundings June 2017 - 27
ILMA Compoundings June 2017 - 28
ILMA Compoundings June 2017 - 29
ILMA Compoundings June 2017 - Business Hub
ILMA Compoundings June 2017 - 31
ILMA Compoundings June 2017 - Counsel Compound
ILMA Compoundings June 2017 - 33
ILMA Compoundings June 2017 - Washington Landscape
ILMA Compoundings June 2017 - 35
ILMA Compoundings June 2017 - 36
ILMA Compoundings June 2017 - 37
ILMA Compoundings June 2017 - Member Connections
ILMA Compoundings June 2017 - 39
ILMA Compoundings June 2017 - 40
ILMA Compoundings June 2017 - Cross Connections
ILMA Compoundings June 2017 - 42
ILMA Compoundings June 2017 - 43
ILMA Compoundings June 2017 - Portrait
ILMA Compoundings June 2017 - Cover3
ILMA Compoundings June 2017 - Cover4
https://www.nxtbook.com/ygsreprints/ILMA/G127535ILMA_vol71_no7
https://www.nxtbook.com/ygsreprints/ILMA/G126213ILMA_vol71_no6
https://www.nxtbook.com/ygsreprints/ILMA/G125546_ILMA_vol71_no5
https://www.nxtbook.com/ygsreprints/ILMA/G124996_ILMA_vol71_no4
https://www.nxtbook.com/ygsreprints/ILMA/G123886_ILMA_vol71_no3
https://www.nxtbook.com/ygsreprints/ILMA/G123315_ILMA_vol71_no2
https://www.nxtbook.com/ygsreprints/ILMA/G122980_ILMA_vol71_no1
https://www.nxtbook.com/ygsreprints/ILMA/G121540_ILMA_vol70_no11
https://www.nxtbook.com/ygsreprints/ILMA/G120882_ILMA_vol70_no10
https://www.nxtbook.com/ygsreprints/ILMA/G120035_ILMA_vol70_no9
https://www.nxtbook.com/ygsreprints/ILMA/G121XXX_ILMA_vol70_no8
https://www.nxtbook.com/ygsreprints/ILMA/G120XXX_ILMA_vol70_no7
https://www.nxtbook.com/ygsreprints/ILMA/G119XXX_ILMA_vol70_no6
https://www.nxtbook.com/ygsreprints/ILMA/G118112_ILMA_vol70_no5
https://www.nxtbook.com/ygsreprints/ILMA/G117382_ILMA_vol70_no4
https://www.nxtbook.com/ygsreprints/ILMA/G116888_ILMA_vol70_no3
https://www.nxtbook.com/ygsreprints/ILMA/G115555_ILMA_vol70_no2
https://www.nxtbook.com/ygsreprints/ILMA/G114774_ILMA_vol70_no1
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no12
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no11
https://www.nxtbook.com/ygsreprints/ILMA/g110500_ILMA_vol69_no10
https://www.nxtbook.com/ygsreprints/ILMA/g109884_ILMA_vol69_no9
https://www.nxtbook.com/ygsreprints/ILMA/g109284_ILMA_vol69_no8
https://www.nxtbook.com/ygsreprints/ILMA/g108494_ILMA_vol69_no7
https://www.nxtbook.com/ygsreprints/ILMA/g107507_ILMA_vol69_no6
https://www.nxtbook.com/ygsreprints/ILMA/g106483_ILMA_vol69_no5
https://www.nxtbook.com/ygsreprints/ILMA/g105803_ILMA_vol69_no4
https://www.nxtbook.com/ygsreprints/ILMA/g104743_ILMA_vol69_no3
https://www.nxtbook.com/ygsreprints/ILMA/g103647_ILMA_vol69_no2
https://www.nxtbook.com/ygsreprints/ILMA/g102869_ILMA_vol69_no1
https://www.nxtbook.com/ygsreprints/ILMA/g101930_ILMA_vol68_no12
https://www.nxtbook.com/ygsreprints/ILMA/g100836_ILMA_vol68_no11
https://www.nxtbook.com/ygsreprints/ILMA/g99200_ILMA_vol68_no10
https://www.nxtbook.com/ygsreprints/ILMA/g98468_ILMA_vol68_no9
https://www.nxtbook.com/ygsreprints/ILMA/g97711_ILMA_vol68_no8
https://www.nxtbook.com/ygsreprints/ILMA/G96767ILMA_vol68_no7
https://www.nxtbook.com/ygsreprints/ILMA/G95397ILMA_vol65_no6
https://www.nxtbook.com/ygsreprints/ILMA/G94323ILMA_vol68_no5
https://www.nxtbook.com/ygsreprints/ILMA/G93127_ILMA_vol69_no4
https://www.nxtbook.com/ygsreprints/ILMA/G91785_ILMA_vol68_no3
https://www.nxtbook.com/ygsreprints/ILMA/G90956_ILMA_vol68_no2
https://www.nxtbook.com/ygsreprints/ILMA/G89146_ILMA_vol68_no1
https://www.nxtbook.com/ygsreprints/ILMA/G87981_ILMA_vol67_no12
https://www.nxtbook.com/ygsreprints/ILMA/G85409_ILMA_vol67_no11
https://www.nxtbook.com/ygsreprints/ILMA/G83595_ILMA_vol67_no10
https://www.nxtbook.com/ygsreprints/ILMA/G81672_ILMA_vol67_no9
https://www.nxtbook.com/ygsreprints/ILMA/G80238_ILMA_vol7_no8
https://www.nxtbook.com/ygsreprints/ILMA/G79388_ILMA_vol7_no7
https://www.nxtbook.com/ygsreprints/ILMA/G78361_ILMA_vol7_no6
https://www.nxtbook.com/ygsreprints/ILMA/G77448_ILMA_vol7_no5
https://www.nxtbook.com/ygsreprints/ILMA/G75899_ILMA_vol67_no4
https://www.nxtbook.com/ygsreprints/ILMA/G75036_ILMA_vol67_no3
https://www.nxtbook.com/ygsreprints/ILMA/G72720_ILMA_vol67_no2
https://www.nxtbook.com/ygsreprints/ILMA/G72220_ILMA_vol67_no1
https://www.nxtbook.com/ygsreprints/ILMA/G70970_ILMA_vol66_no12
https://www.nxtbook.com/ygsreprints/ILMA/G69813_ILMA_vol66_no11
https://www.nxtbook.com/ygsreprints/ILMA/G67522_ILMA_vol66_no10
https://www.nxtbook.com/ygsreprints/ILMA/G66343_ILMA_vol66_no9
https://www.nxtbook.com/ygsreprints/ILMA/G64859_ILMA_vol66_no8
https://www.nxtbookmedia.com