Modeling Containerized Hay Shipments in the Pacific Northwest: Investigating Cost and Volume Impacts as Port of Portland Container Services is Reduced Reportar como inadecuado




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A recent issue impacting freight shipments in Washington State involves the reduction of containerservices at the Port of Portland, Oregon. Prior to this change, export containers filled with hay wereshipped almost exclusively via barge down the Columbia River to the Port of Portland. After reachingPortland, the containers were then loaded onto one of three ocean container lines: Hyundai, K-Line,or Hanjin and destined to markets in Japan and China. As of September 2004, Hanjin is the onlyremaining carrier that calls at the Port of Portland.This research effort has collected firm level data on the production, transportation and marketing ofhay in Washington and incorporates this information in the design and development of atransportation optimization model of regional hay movements. This model is then utilized to evaluateindustry shifts in transportation usage and modal choice in reaction due to these industry changesafter September 2004.The results indicate that after all barge and hay shipments are eliminated into Portland, region-widetransportation costs actually decrease initially overall, while some individual producers experienceincreased shipping costs. Both rail and truck volumes increase substantially in the absence ofcontainer shipments on barge. The total industry impact is a $6.3 million increase in transportationcosts from the Base Scenario to Scenario 3. Also, once truck rates are allowed to increase due to theshortage of trucks and the increased demand for truck services, the total transportation costincreases by $8.7 million.As trucking rates increase due to the increased demand for trucking services, the industrytransportation cost does increase to $47.5 million, a 15 percent increase from Scenario one and a 22percent increase from Scenario two. While this increase is significant, it is not as severe or adverseas previously expected throughout the Pacific Northwest agricultural and hay industry. As expected,there is greater reliance on rail and truck transportation once barge shipments to Portland areeliminated.

Subject(s): Production Economics

Productivity Analysis

Public Economics

Issue Date: 2007-03

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/207935

Total Pages: 12

Record appears in: Transportation Research Forum > 48th Annual Transportation Research Forum, Boston, Massachusetts, March 15-17, 2007





Autor: Jessup, Eric ; Meenach, Stephanie ; Casavant, Ken

Fuente: http://ageconsearch.umn.edu/record/207935?ln=en







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