Fredrik Eng-Larsson and Andreas Norrman
The purpose of this paper is to investigate contracts of the intermodal transport market and the incentives they create for a modal shift and thus the financial and environmental…
Abstract
Purpose
The purpose of this paper is to investigate contracts of the intermodal transport market and the incentives they create for a modal shift and thus the financial and environmental efficiency of freight transport.
Design/methodology/approach
The research used a mixed-methods approach where qualitative case interviews and quantitative modeling was combined. Two cases of contractual relationships between a service provider and its intermodal train operator on a specific lane were investigated. The case findings were then consolidated and used as input for a model of the contractual relation. Findings were sought through an extensive numerical study.
Findings
The cases reported that intermodal rail operators had a strong production focus, transferring the capacity risk (i.e. the risk of unused capacity) to the service provider, which the service providers argued limited the shift from truck to intermodal transportation. The paper shows that, due to the market structure, it is rational for the operator to transfer the capacity risk but not the profit. Consequently, a modal shift is only likely to occur when there is strong shipper pressure or low capacity risk. We present a risk-sharing contract that could release this dead lock.
Research limitations/implications
The conclusions are modeling outcomes subject to assumptions based on the cases. For further validation, large-scale quantitative studies are necessary.
Practical implications
The paper shows that a three-part tariff in which the capacity risk is shared may lead to increased modal shift and hence assumed improved environmental performance.
Social implications
Instead of arguing for operators to be more customer-focussed, policy makers and other stakeholders may have more to gain by having both actors being more cooperation focussed.
Originality/value
The paper is the first attempt to quantify how the contractual relations on the freight transport market affect the modal mix and thus the financial and environmental efficiency of freight transport.
Details
Keywords
Fredrik Eng‐Larsson and Christofer Kohn
A commonly suggested measure to make logistics greener is a shift to intermodal road‐rail transportation. Most research addresses the issue from the carrier's perspective, arguing…
Abstract
Purpose
A commonly suggested measure to make logistics greener is a shift to intermodal road‐rail transportation. Most research addresses the issue from the carrier's perspective, arguing for ways to improve the service production to better fit the shippers' demand. In this article the issue is addressed from the shipper's perspective. The purpose is to understand what contextual factors and operations changes that are possible and/or necessary for the shipper to make a fit to the current production system.
Design/methodology/approach
Six case companies selling non‐bulk, fast moving goods are examined. These firms have gone against the mainstream and shifted modes of transport. They are investigated through a multiple case‐study design.
Findings
The findings indicate that contextual factors stressed in the carrier‐focused literature, or rule of thumb decisions made by shipping logistics management, do not always clearly predict the success of a modal shift. However, some common denominators emerge among successful cases: large transport purchasing resources, high general carrier performance, low demand volatility, and centralized system control. The study also poses some propositions regarding the success of a modal shift.
Research limitations/implications
The research is qualitative in nature and thus limited to the companies and their respective logistics systems. However, the models could be further evaluated empirically through quantitative and qualitative methods alike.
Practical implications
The paper poses a number of propositions of what constitutes a successful modal shift from a shipper's perspective, based on the identified factors and operational changes.
Originality/value
Previous research on the shift to intermodal road‐rail solutions are predominantly made from a carrier's perspective. This research addresses the issue from the shipper's perspective.
Details
Keywords
Ali Pazirandeh and Hamid Jafari
The purpose of this paper is to critically evaluate whether or not greening efforts are dependent on a higher level company-wide sustainability strategy to be carried out and…
Abstract
Purpose
The purpose of this paper is to critically evaluate whether or not greening efforts are dependent on a higher level company-wide sustainability strategy to be carried out and whether or not greening efforts lead to any changes in logistics effectiveness and logistics efficiency.
Design/methodology/approach
The paper is based on empirical data collected via a survey sent to logistics managers and transport purchasers at Nordic multinationals. The results were analysed using structural equation model as to validate the anticipated relationships between the designed constructs.
Findings
Within this research, the authors have tried to validate the existence of relationships between a company's sustainability strategy, its transportation greening efforts and logistics performance.
Research limitations/implications
The paper investigates the possible effect the sustainability strategy of the firm will have on its decision to green its transportation, and the possible effect these measures will have on logistics efficiency and effectiveness. The empirical data gathered for this research are regionally restricted to the Nordic region. Further research could empirically test these relationships with empirical data from other countries or industries, perhaps using other performance constructs, to see if the results hold true.
Practical implications
It is shown that companies with a sustainability strategy are focusing on greening their transportation both from purchasing and operations perspectives to improve their entire environmental performance. The results from this paper fail to support the assumption that company-wide sustainability strategies are imperative for supply chain greening.
Originality/value
The paper is among the first attempts in analysing the relationships between a company's sustainable strategy and its logistics performance through greening the transportation activities.