Title

Discrete Choice Model For Air-Cargo Mode Selection

Keywords

Air cargo; Air freight; Discrete choice model; HEV model; Logit distribution; Mode choice; Probit model; Revealed preference

Abstract

Purpose - The purpose of this paper is to develop a better understanding of the factors that influence a shipper's decision to choose air cargo as a mode of shipment. Design/methodology/approach - A disaggregate multinomial discrete choice model is developed using freight shipment survey data to identify critical factors influencing air cargo mode choice. Disaggregate revealed preference data is obtained from surveying 347 manufacturers, freight forwarders, and other third-party service providers. Findings - The empirical model developed in this research shows that the rate of shipment, time of transit, cost-per-pound shipped, quantity shipped, perishability and delay rate of the mode are significant factors that influence mode choice. Research limitations/implications - The discrete choice model developed can be improved by taking into account logistics costs not considered in this research. Perhaps more in-depth surveys of the shippers and freight forwarders are needed. Additionally, improving the mode choice model by including stated preference data and subsequently incorporating service quality latent variables would be beneficial. Practical implications - Identifying the sensitivity of the shippers to various factors influencing mode selection enables transportation planners make better demand forecast for each mode of transportation. Originality/value - This paper extends previous mode choice studies by analyzing mode selection between air cargo and other modes. Better forecasting is achieved by replacing the logit model with probit, heteroscedastic extreme value and mixed logit models.

Publication Date

11-4-2014

Publication Title

International Journal of Logistics Management

Volume

25

Issue

3

Number of Pages

656-672

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1108/IJLM-04-2012-0027

Socpus ID

84926347725 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/84926347725

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