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Transport, Economy and Society PDF Free Download

Transport, Economy and Society PDF free Download. Think more deeply and widely.

https://transportgeography.org/
Copyright © 1998-2024, Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M
University - Galveston.
ecojpr@gmail.com
You may use the figures within for educational purposes only. No modification or redistribution permitted.
For more information: https://transportgeography.org/
Transport, Economy and
Society
CHAPTER 3
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in
ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Usage Conditions
•DO NOT COPY, TRANSLATE OR REDISTRIBUTE THIS DOCUMENT.
•The contents of this document can be freely used for personal or classroom use ONLY.
•Although the material contained in this document is freely available, it is not public domain. Its contents, in whole or in part (including
graphics and datasets), cannot be copied and published in ANY form (printed or electronic) without consent.
•If you have accessed this document through a third party (such as a content farm), keep in mind that this party is illegally redistributing
this content. Please refer to the true source (https://transportgeography.org/) instead of the third party.
•Permission to use any graphic material herein in any form of publication, such as an article, a book or a conference presentation, on any
media must be requested prior to use.
•Information cited from this document should be referred as: Rodrigue, J-P et al. (2024) The Geography of Transport Systems, Texas A&M
University, Department of Maritime Business Administration, https://transportgeography.org/.
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Table of Contents
•3.1 – Transportation and Economic Development
•3.2 – Transportation and Society
•3.3 – Transport Costs
•3.4 – The Provision and Demand of Transportation Services
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Transport and Economic
Development
Chapter 3.1
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Factors behind the Development of Transport Systems
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Environmental Historical Technological Political EconomicScale
Local
Regional
National /
Transnational
Global
Hydrography and
geomorphology
Climate
Distance
Oceanic masses
Culture and
settlement patterns
Urban system
Nation state /
Colonialism /
Imperialism
Globalization
Roads
Railways and canals
Corridors and sea
routes
Air transport and tele-
communications
Zoning
Taxation and
regulations
Trade agreements
Multilateral
agreements (WTO)
Employment and
distribution
Modal competition
and complementarity
Markets
Interdependency and
comparative
advantages
© GTS
Services and their Associated Infrastructures
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
SERVICE SUPPORTING INFRASTRUCTURES
Transportation
Water supply
Water disposal
Irrigation
Waste disposal
Telecommunications
Power
Roads, bridges, tunnels, rail tracks, ports, harbors, airports,
distribution centers.
Dams, reservoirs, pipes, treatment plants.
Sewers, used water treatment plants.
Dams, reservoirs, canals, sprinkling systems.
Landfills, incinerators, recycling facilities, compost units.
Telephone exchanges, telephone and cable lines, oceanic
cables, cellular towers, fiber optic cables, web servers.
Power plants, transmission & distribution lines, pipelines. © GTS
Economic Impacts of Transportation Infrastructure
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Intermodal
Modal
Infrastructure level
Local Regional Global
Time frame
Infrastructure level
Capacity Costs
Time Reliability
Accessibility Location
© GTS
CORE
OPERATIONAL
GEOGRAPHICAL
Socioeconomic Benefits of Transportation
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
SCOPE
•Time and cost savings.
•Income from transport
operations.
•Formation of distribution networks.
•Attraction of economic activities.
•Increased competitiveness.
•Productivity and added gains.
•Rent income.
•Goods and services to operators.
•Range of suppliers and markets.
•Improved mobility.
•Increased social
opportunities.
•Time and cost savings.
•Income from transport
operations.
•Access to labor or customers.
•Rent income.
•Goods and services to users.
Capacity
and
efficiency
Accessibility
and economies
of scale
Multipliers and
opportunities
PASSENGERS FREIGHT
DIRECT
INDIRECT
INDUCED
Users Operators
Employers & Retail Customers
© GTS
Society Economy
Diminishing Returns of Transport Investments
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
•New infrastructure built over limited existing infrastructure.
•Benefits from new connectivity and capacity.
•New economic opportunities (labor, resources, markets).
•Expansion of existing infrastructure; emergence of corridors.
•Expanded connectivity, capacity and reliability.
•Productivity improvements.
•High infrastructure maintenance and upgrade costs.
•Niche connectivity.
•Peak capacity and reliability.
•Limited productivity improvements.
High Multiplying Effects
Average Multiplying Effects
Low Multiplying Effects
A
B
C
Multiplying Effects
Network Density
A
B
C
© GTS
Diminishing Marginal Returns
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Inputs
Output
I1 I2
O2
O1
Types of Transport Economic Improvements (under construction)
Factor Driven
Efficiency
Driven
Innovation
Driven
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Transport Economic Indicators
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
TYPE MEASURES RELEVANCE
Transportation Prices
Transportation Productivity
Logistics Costs
Transport Capacity Utilization
Aggregate price of transportation
services by mode or commodity.
Input costs by economic sector. Market
competitiveness.
Labor productivity and total-factor
productivity (labor and assets).
Level of return on investment. Economic
impacts by sector.
Supply-chain distribution cost relative to
GDP or total costs. Efficiency by logistics function.
Share of modal (vehicles and links) and
intermodal (terminals) capacity.
Assessment of investment needs for
maintenance, upgrade and expansion.
© GTS
Economic Multiplier Effects of Transportation
Type
Effect
Context
Source
Transit time
One day in transit equivalent
to a tariff of 0.6 to 2.1%
OECD
Hummels
(2012)
Port
10% increase in port
efficiency leads to 3.2%
increase in real trade
between a country pair
USA
Blonigen
and Wilson
(2006)
Port
1% increase in port efficiency
leads to a 0.38% reduction in
trade costs
World Bank (2017)
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Transport Spending as Share of GDP, Selected Countries 2005
12
16
13
14
14
13
10
12
9
11
14
11
11
13
11
14
18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Australia
Austria
Belgium
Canada
France
Germany
Greece
Italy
Japan
Korea
Mexico
Netherlands
Spain
Sweden
Turkey
United Kingdom
United States
Transport Other
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Transport Infrastructure Investment and Maintenance Spending as Share of GDP, 2015
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Canada China France Germany India Italy Japan Korea Russia Spain Turkey United
Kingdom
United
States
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Composition of the GDP, United States, 1991-2013
9.7 10.1 10.3 9.5 8.8 9.5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1991 1995 2000 2005 2010 2013
Other
Education
Transportation
Food
Health care
Housing
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Employment in Transportation, United States, 1990-2021
0
1,000
2,000
3,000
4,000
5,000
6,000
1990 2000 2005 2010 2015 2018 2021
Thousands
Railroad
Transit
Air
Couriers
Support activities
Warehousing
Trucking
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
© GTS
Employment in the Transport Sector, Selected Countries, 1996
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0
1
2
3
4
5
6
7
8
9
Canada France Italy United Kingdom United States
Millions
Percentage of the Labor Force
% of Total Labor Force Transportation Employment
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Infrastructure Level and Economic Development
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Per Capita Income
Infrastructure Level
Radio Cell Phone
Electricity
Water / Sewage
Road
Cumulative Modal Contribution to Economic Opportunities
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Horses Canal shipping
Railways
Roads
Air
Telecommunications
1750 1775 1800 1825 1850 1875 1900 1925 1950 1975 2000 2025 2050
Economic Opportunities
Maritime shipping
Industrial Revolution Mass Production Globalization
Introduction
World Migration Routes Since 1700
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
European
African (slaves)
Indian
Chinese
Japanese Majority of population descended from immigrants
Resource-Based Transport Systems
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Country A Country B
Gateway
Load
center
Resource Area
Rail corridor
© GTS
World Bank Average Annual Lending by Mode, 2007
62%
4%
20%
1%
13%
Roads & Highways
Ports & Waterways
Railways
Aviation
General Transportation
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Wealth Consumption Investment in Transport Infrastructure: Repaving a Sidewalk
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
After
A Multi-Layer Perspective about Transport and Economic Development
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Transport Chain
Organization
Transport Service
Operations
Transport
Infrastructure
Location
Organization of the (multimodal) routing of passengers
and freight through the transport system using a mix of
transport services and transport infrastructures.
Bus services, rail services, barge services, maritime
transport services, trucking, airline services, etc.
Freight and passenger handling in transport nodes.
Transport nodes (e.g. airport, seaport, railway station,
intermodal terminal, etc.) and transport links
(highways, waterways, rail tracks, pipelines, etc.)
Geographical location of origin and destination of
movements (multimodal transport chain).
Valorization
Demand Pull
© GTS
Time Sequence and Nature of Impacts of Transport Investments
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
1
2
3
4
5
IMPACT
Time Sequence
Weak relationship
Positive and lead impacts
Lag and positive impacts
Lead and negative impacts
Lag and negative impacts
POSITIVE NEGATIVE
LEAD
LAG
© GTS
Impact of Recessions on Consumption, Production and Trade
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Category average
None
Significant
Decline
A – Basic Goods
B – Discretionary Goods
C – Durable Goods
D – Capital Equipment
E – Luxury Goods
DEMAND
A B C D E 1 2 3 4
1 – Futures Indexes
2 – Production (by sector)
3 – Container Volumes (by trade lane)
4 – Value of Trade (by trade group)
SUPPLY
Subcategory average
Severe recession
Light recession
SequenceProduct Categories
© GTS
Selected Supply Chain and Trade Indicators, 2007-2022 (2007=100)
30
50
70
90
110
130
150
170
190
210
230
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
Jan-12
May-12
Sep-12
Jan-13
May-13
Sep-13
Jan-14
May-14
Sep-14
Jan-15
May-15
Sep-15
Jan-16
May-16
Sep-16
Jan-17
May-17
Sep-17
Jan-18
May-18
Sep-18
Jan-19
May-19
Sep-19
Jan-20
May-20
Sep-20
Jan-21
May-21
Sep-21
Jan-22
May-22
Sep-22
PMI
Oil (WTI)
MNODG
CTI
CPB (WTI)
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
1 2 3 4
Sequence
PMI
WTI
MNODG
CTI
CPB(WTI)
Internal shock
External shock
PMI: Purchasing Managers Index
WTI: West Texas Intermediate
MNODG: Manufacturers New Orders of Durable Goods
CTI: Container Throughput Index
CPB(WTI): World Trade Index (volume)
Manufacturers' New Orders of Durable Goods
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Feb-92
Oct-92
Jun-93
Feb-94
Oct-94
Jun-95
Feb-96
Oct-96
Jun-97
Feb-98
Oct-98
Jun-99
Feb-00
Oct-00
Jun-01
Feb-02
Oct-02
Jun-03
Feb-04
Oct-04
Jun-05
Feb-06
Oct-06
Jun-07
Feb-08
Oct-08
Jun-09
Feb-10
Oct-10
Jun-11
Feb-12
Oct-12
Jun-13
Feb-14
Oct-14
Jun-15
Feb-16
Oct-16
Jun-17
Feb-18
Oct-18
Jun-19
Feb-20
Oct-20
Jun-21
Feb-22
Oct-22
Jun-23
Feb-24
Oct-24
Millions of USD
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Lifespan of Main Transport Assets
8
10
15
20
20
20
30
50
50
70
0 20 40 60 80 100 120 140 160
Car
Container
Containership
Jet plane
Locomotive
Highway
Bridge
Airport
Railway
Port
Years
Average Lifespan
Optimum Lifespan
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Long Wave Cycles of Innovation
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
1785 1845 1900 1950 1990
Waterpower
Textiles
Iron
Mechanization
Commerce
Steam
Rail
Steel
Cotton
Electricity
Chemicals
Internal combustion engine
Petrochemicals
Electronics
Aerospace
Digital networks
Software
New Media
Biotechnology
60 years 55 years 50 years 40 years 30 years
Pace of innovation
1st Wave 2nd Wave 3rd Wave 4th Wave 5th Wave
2020
6th Wave
Automation
Robotics
Digitalization
Sustainability
25 years (?)
© GTS
The Five Waves of Development
First wave (1785
-1845)
Beginning of the industrial revolution (England).
Agricultural surpluses, savings and investment.
Productivity growth in agriculture and in new industrial activities.
Textiles, iron and
water power.
Second wave (1845
-1900)
Acceleration in the generation of surpluses.
Growth in the investment level (5 to 10% of the national income).
Coal, steam engine and railways.
Third wave (1900
-1950)
Phase of maturity (investment levels at 20% of national income).
Electricity, chemicals and internal combustion engine.
Fourth wave (1950
-1990)
Mass consumption society (surpluses, savings and investment).
Tertiary sector taking a growing share of the economy.
Petrochemicals, electronics and aviation.
Fifth wave (1990
-2020?)
Technology and information are the driving forces.
De
-industrialization of several developed countries.
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Diffusion Cycle of Containerization
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
New (niche) services
Productivity gains Network development
Productivity multipliers
Massive diffusion
Network complexities
Niche markets
Diffusion Level
Time
Containerization as a Diffusion Cycle: World Container Traffic (1980-2023)
0
100
200
300
400
500
600
700
800
900
1000
1980
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Million TEU
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
1966-1992 1993-2001
2002-2008 2009 -
Adoption
Acceleration
Peak Growth Maturity
New (niche) services
Productivity gains Network development
Productivity multipliers
Massive diffusion
Network complexities
Niche markets
Diffusion Level
Time
© GTS
Technology “Hype” Cycle
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Visibility
Inflated expectations
Abandonment
Delusion
Introduction Productivity peak
Learning curve
Utility
HYPE PHASE REALIZATION PHASE
© GTS
Cycles, Space and Transportation
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Time
Space
Regional
Global
Local A
BC1
C2
C
D
AB
CD
Spatial diffusion
Spatial Diffusion of a Transport System
© GTS
Business Cycles and Misallocations
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Expansion Recession
Peak
Trough
Expansion
Credit-Driven Boom
Credit-Driven Bust
Depression
Normal Cycle
Credit-Driven Cycle
© GTS
Main Stages in a Bubble
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Time
Stealth Phase Awareness Phase Mania Phase Blow off Phase
Valuation
Bear trap
Bull trap
Return to
the mean
Take off
“New Paradigm”!!!
Capitulation
Despair
Media attention
Delusion
Enthusiasm
Greed
First Sell off
Smart Money Institutional
investors
Public
Denial
Fear
Return to “normal”
Source: Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University.
Economic Production and Specialization
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Trade and
Transport
Gateway
Trade and
Transport
Region A Region B
Product A
Product B
Product C
Product D
Product E © GTS
SELF-RELIANCE
REGIONAL TRADE
INTERNATIONAL TRADE
1
2
3
Transport Impacts on Economic Opportunities
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Transport Infrastructure Investments
TRANSPORT IMPROVEMENTS
Capacity Efficiency Reliability
Lower Transport Costs Shorter Transit Times Business Expansion
Labor Market Commodity Market
Increased Productivity
Increased Competitiveness
Economic Growth © GTS
Moving storage units
Just in Time and its Logistics
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Moving storage units Assembly and
warehousing
Assembly line
Warehousing
Delivery Units for Parts Production Unit Delivery Units for Goods
© GTS
PARTS
GOODS
SUPPLY CHAIN
Logistics Logistics
Transportation and Society
Chapter 3.2
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Passengers Mobility Transition
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Economic Development
Individual
Collective
Motorized
Non-motorized
RURAL INDUSTRIAL POST-INDUSTRIAL (SERVICES)
Share of Mobility
© GTS
Relationship between GDP and Motorization, Selected Asian Countries, 1960-1990
R² = 0.595
1
10
100
1000
500 5,000
Motor Vehicles / 1,000 People
GDP per Capita
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Share of Consumption by Sector and Income, Developing Countries, 2010
18.7
9.9
6.9
4.3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Higher Middle Low Lowest
Others
Financial Services
ICT
Personal Care
Health
Education
Utilities
Transport
Energy
Housing
Clothing and Footwear
Food and Beverages
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Share of Employed Females by Profession, United States, 2022
28.3
16
10.9
29.3
45
30.6
10.5
12.8
39
30.4
35.4
51.7
74.6
46.8
0 10 20 30 40 50 60 70 80
Agriculture
Mining
Construction
Manufacturing
Wholesale and retail
Air transportation
Rail transportation
Truck transportation
Urban transit
Couriers
Warehousing
Financial
Education and health
Total
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Employment in Distribution-Related Activities, United States, 2023
3.9%
Distribution-Related
Other
0 500 1000 1500 2000 2500
Postal Service
Services Incidental to
Transportation
Warehousing & Storage
Couriers & Messengers
Truck Transportation
Employed (1,000s)
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Probability of Pedestrian Fatality by Impact Speed
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100 120
Impact speed (km/hr)
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Pedestrian Fatalities, United States, 1990-2020
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Transport Fatalities by Mode, United States, 1970-2020
0
10,000
20,000
30,000
40,000
50,000
60,000
1970 1980 1990 2000 2005 2010 2015 2020
Waterborne
Transit
Railroad
Highway
Air Carriers
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Road Fatalities per 100,000 People, Selected Countries
0 5 10 15 20 25 30 35
Australia
Canada
France
Germany
Italy
Japan
South Korea
Malaysia
South Africa
Sweden
United States
China
2020
2000
1990
1980
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Economic Opportunities According to Automobile Ownership
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
H
CR(A)
CR(B)
WITH AUTOMOBILE
WITHOUT AUTOMOBILE
E2
E1
E3 © GTS
Environmental Dimensions of Transportation
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Causes Activities Outputs End Results
Land Use
Economics
Other
Infrastructure
construction
and maintenance
Vehicle and parts
manufacture
Travel
Vehicle
maintenance and
support
Disposal of
vehicles and parts
Habitat changes
Emissions
Ambient levels
Exposure
Social or
ecological
effects
Health,
environmental
or welfare
effects
© GTS
Transport Costs
Chapter 3.3
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Components of Transport Cost
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
A B
Friction of Distance
Transaction Costs
Shipment
•Legal
•Insurance
•Customs
•Time
•Energy
•Load unit
•Massification
•Packaging © GTS
Household Expenditures on Transport, United States, 2005
42
52
6
0%
20%
40%
60%
80%
100%
Transport
services
Operation of
vehicles
Purchase of
vehicles
46
22
15
11
6
Vehicle finance charges
Other vehicle charges
Maintenance and repairs
Vehicle insurance
Gasoline and motor oil
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
55
43
3
Other vehicles
Car used
Car new
Household Expenditures on Transport, United States, 2020
45.9%
51.4%
2.7%
0%
20%
40%
60%
80%
100%
Public transit & other
Operation of vehicles
Purchase of vehicles
30.5%
30.7%
19.1%
14.8%
5.0%
Vehicle finance charges
Other vehicle charges
Maintenance and repairs
Vehicle insurance
Gasoline and motor oil
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
46.2%
52.2%
1.7%
Other vehicles
Car used
Car new
Fixed and Operating Transport Costs
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
MODE FIXED & CAPITAL COSTS OPERATING COSTS
Rail
Road •Land, Roads, Parking, Ramps,
Bridges, Tunnels, Signalization
•Vehicles and trailers
•Maintenance, Labor,
Fuel/Energy
Pipeline •Land, Pipes
•Pumping stations and Tanks
•Maintenance, Energy
Air •Land, Field, Terminal
•Aircraft
•Maintenance, Fuel, Labor,
Airport charges
Maritime •Land for port terminals
•Cargo handling equipment
•Ships
•Maintenance, Fuel, Labor, Port
Charges
•Land, Tracks, Bridges,
Tunnels, Signalization
•Locomotives and Wagons
•Rail yards and Terminals
•Maintenance, Labor, Fuel
Telecommunications •Maintenance, Energy
•Towers, Hubs, Poles, Cables
•Exchanges, Servers © GTS
Conditions Affecting Transport Costs
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
CONDITIONS FACTORS EXAMPLES
Type of Product
Geography
Economies of Scale
Imbalances
Infrastructure
Regulations
•Distance, physiography,
accessibility
•Shipping between France and England vs.
shipping between France and the Netherlands
•Amenities, packaging, density,
weight, perishability
•Business vs economy class
•Shipping coal, flowers or wine
•Shipment size •Narrow-body vs. a wide-body flight
(passengers)
•Post-Panamax vs. to Panamax (freight)
•Empty travel •Commuting
•Trade between China and the United States
•Capacity, operational conditions
•A bus vs. a car
•A bulk ship vs. a containership
Mode •Capacity, operational conditions
•The Interstate
•Tariffs, operational restrictions,
safety, ownership
•Anti-trust regulations
•The Jones Act © GTS
Freight Transportation Service Spectrum
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
High Low
$4.50/kg $1.00/kg 50¢/kg 5¢/kg 2¢/kg 1¢/kg
Air Cargo Truck Rail Intermodal Rail Carload Rail Unit Water
•Fastest, most reliable
and most visible.
•Lowest weight, highest
value and most time-
sensitive cargo.
•Fast, reliable and
visible.
•Range of weight and
value.
•Rail intermodal
competitive with truck
over longer distances.
•Slower, less reliable and
less visible.
•Highest weight, lowest
value and less time-
sensitive cargo.
© GTS
Friction of Distance Functions
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Distance
Costs
Transshipment Costs
Fixed Costs
Zone Change
(a)
(b)
1. No effects of distance 2. Linear effects of distance
3. Non-linear effects of distance 4. Intermodal transport chain
© GTS
Zonal Freight Rates
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Distance
Costs
I II III IV
Flat zonal rate
Real transport cost
D1
D2
© GTS
Total Freight Moved by Distance, United States, 2007
0
10
20
30
40
50
60
Below 100 100 to 249 250 to 499 500 to 749 750 to 999 1,000 to 1,499 1,500 to 2,000 Over 2000
Weight Ton-Miles
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Different Components of Transport Time
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Time
Distance
Transport Time Timing
Punctuality Frequency
© GTS
Freight Transport Revenue per Ton-Mile (in 2006 dollars)
$0.01 $0.02
$0.27
$0.80
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
Water Rail Road Air
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
First and Last Mile Unit Cost Structure
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
“First Mile” “Last Mile”
Unit Transport Costs
Transport sequence
Urban Area
International / Intercity
© GTS
Letters of Credit and Bills of Lading in Commercial Transactions
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Seller
Shipper
Seller’s
Bank
Buyer’s
Bank
Buyer
Contract
Letter of Credit
Shipper
Seller’s
Bank
Buyer’s
Bank
Buyer
Consignment
Bill of lading
Seller
Shipper
Seller’s
Bank
Buyer’s
Bank
Buyer
Bill of lading
Payment
Seller
Seller’s
Bank
Buyer’s
Bank
Buyer
Consignment
Bill of lading
12
34
Seller
Shipper
© GTS
Selected International Commercial Terms (Incoterms)
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Loading
Location
Port of
Origin
Port of
Destination
Unloading
Location
Insurance
EXW
FCA
FAS
FOB
CFR
CIF
CIP
Seller’s cost / risk
Buyer’s cost / risk
© GTS
Cost / Performance Relationships for Inland Freight Transportation Modes
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Intermodal
Cost
Performance (Speed, Reliability, Flexibility)
Barge/Short Sea
Intermodal Potential
Truckload
Air
Rail Carload
LTL
Shipment Size and Inland Transport Costs
1
10
100
1,000
10,000
100,000
1,000,000
10,000,000
Parcel LTL Truck Truckload Railcar load Multi-railcar Unit train Barge load
Shipment Size (lbs) Transport Charges ($/ton)
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Top 10 Commodity Groups Ranked by Value Per Ton, United States, 2002
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000
Average
Furniture, mattresses and lighting products
Miscellaneous manufactured products
Motorized and other vehicles and parts
Machinery
Textiles, leather, and products
Tobacco products
Precision instruments and apparatus
Transportation equipment
Electronic, electrical, and office equipment
Pharmaceutical products
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Top 15 Commodity Groups Ranked by Value Per Ton, United States, 2017
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000
Pharmaceutical products
Precision instruments
Tobacco products
Other transportation equipment
Electronics
Textiles and leather
Machinery
Miscellaneous manufactured products
Motorized and other vehicles
Furniture
Mixed freight
Printed products
Meat and seafood
Chemical products and preparations
Articles of metal
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Share of Transport Costs in Product Prices
0 5 10 15 20 25 30
Stone, clay and glass
Petroleum
Lumber and wood
Food
Furniture
Paper products
Primary metals
Textiles
Fabricated metals
Transport equipment
Rubber and plastics
Tobacco
Machinery
Instruments
Apparel
Printing and publishing
Electronics
Leather products
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Share of Transport Costs in Product Prices and Average Haul Length
27
24
18
13
12
11
9
8
8
8
7
5
5
4
4
4
4
3
0 5 10 15 20 25 30
0 200 400 600 800 1000 1200
Stone, clay and glass
Petroleum
Lumber and wood
Food
Furniture
Paper products
Primary metals
Textiles
Fabricated metals
Transport equipment
Rubber and plastics
Tobacco
Machinery
Instruments
Apparel
Printing and publishing
Electronics
Leather products
Share (%)
Length (km)
Average haul length (km) Share (%)
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Share of Transport Costs in Product Prices and Average Domestic Haul Length
Stone, clay and glass
Petroleum
Lumber and wood
Food
Furniture
Paper products
Primary metals
Textiles
Fabricated metals
Transport equipment
Rubber and plastics
Tobacco
Machinery
Instruments
Apparel
Printing and publishing
Electronics
Leather products
R² = 0.3988
0
100
200
300
400
500
600
700
0 5 10 15 20 25 30
Average haul length (km)
Share of Transport Costs (%)
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
© GTS
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Average Length of Haul by Major Commodity Group, 2002 (in miles)
0 100 200 300 400 500 600 700
Textiles, leather, and products
Electronic, electrical, and office equipment
Plastics and rubber
Machinery
Pharmaceutical products
Cereal grains
Coal
Wood products
Basic chemicals
Fertilizers
Alcoholic beverages
Waste and scrap
Fuel oils
Gasoline and aviation turbine fuel
Gravel and crushed stone
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Typical Ocean Freight Costs for some Products (Asia – United States or Asia – Europe)
Typical Shelf Price Shipping Costs Shipping Costs
Share
LCD TV Set $700 $4.00 0.5%
Digital Camera (high
range)
$450 $0.15 0.03%
Vacuum Cleaner $150 $1.00 0.6%
Scotch Whisky (bottle) $50 $0.15 0.3%
Coffee (1 kg) $15 $0.15 3.3%
Biscuits (Tin) $3 $0.05 1.7%
Beer (Can) $1 $0.01 1.0%
Apple $0.75 $0.04 5.3%
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Baltic Dry Index, Monthly Value, 1985-2023
0
2,000
4,000
6,000
8,000
10,000
12,000
Jan-85
Oct-85
Jul-86
Apr-87
Jan-88
Oct-88
Jul-89
Apr-90
Jan-91
Oct-91
Jul-92
Apr-93
Jan-94
Oct-94
Jul-95
Apr-96
Jan-97
Oct-97
Jul-98
Apr-99
Jan-00
Oct-00
Jul-01
Apr-02
Jan-03
Oct-03
Jul-04
Apr-05
Jan-06
Oct-06
Jul-07
Apr-08
Jan-09
Oct-09
Jul-10
Apr-11
Jan-12
Oct-12
Jul-13
Apr-14
Jan-15
Oct-15
Jul-16
Apr-17
Jan-18
Oct-18
Jul-19
Apr-20
Jan-21
Oct-21
Jul-22
Apr-23
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
World Container Route Index, Monthly (To be updated)
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
6/1/2013
8/1/2013
10/1/2013
12/1/2013
2/1/2014
4/1/2014
6/1/2014
8/1/2014
10/1/2014
12/1/2014
2/1/2015
4/1/2015
6/1/2015
8/1/2015
10/1/2015
12/1/2015
2/1/2016
4/1/2016
6/1/2016
8/1/2016
10/1/2016
12/1/2016
2/1/2017
4/1/2017
6/1/2017
8/1/2017
10/1/2017
12/1/2017
2/1/2018
4/1/2018
6/1/2018
8/1/2018
10/1/2018
12/1/2018
2/1/2019
4/1/2019
6/1/2019
Rotterdam-Shanghai
Shanghai-Rotterdam
Shanghai-Los Angeles
Los Angeles-Shanghai
Shanghai-New Yrok
New York-Rotterdam
Rotterdam-New York
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Maritime Transportation Rates for a 40 Foot Container between Selected Ports, 2010
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
$1,000
$1,200
Shanghai
LA/LB
New York
Rotterdam
2,620
1,400
Eastbound / Northbound
Westbound / Southbound
3,700
1,830
1,810
2,520
Santos
Melbourne
1,570
3,690
3,060
3,060 1,070
4,340
Durban
Paths are approximate
1,770
3,670
3,810
3,340
2,750
2,550
2,880
3,480
Daily Operating Expenses for Containerships per TEU
8
10
12
14
16
18
20
22
24
0 5,000 10,000 15,000 20,000 25,000
$ / TEU / Day
Ship Capacity in TEU
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Freight Rates in TEU Between Singapore and Rotterdam
100
120
140
160
180
200
220
240
260
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000
USD per TEU
Ship Capacity in TEU
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Container Shipping Costs
10
20
10
40
25
20
55
20
0
20
40
60
80
100
Port-to-Port Door-to-Door
Percentage
Maritime Shipping
Port transshipment
Container and inland transport
Management
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Cost to Import a 20 Foot Container, 2015
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Logistics Costs and Average Transit Time of a 20 Foot Container, Mombasa – Nairobi
(Kenya)
0
2
4
6
8
10
12
14
16
18
0 100 200 300 400 500
Time (hours)
Distance (km)
Average Transit Time (29.8 hours for 430 km)
17%
3%
15%
4%
13%
3%
4%
41%
Total Logistics Costs (9,844 USD)
Sea Freight Shipping
Port Handling
Shipping Lines Charges
Container Freight Station Charges
Inland Routing Costs
Clearing Agent Fees + VAT
Direct Costs of Delays
Indirect Costs of Delays
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Police checks (+ 2 hours)
Other driver delays (+11 hours)
Weight station (+3 hours)
Weight station (+3 hours)
Unloading (+2 hours)
Nairobi
Mombasa
Fixed and Variable Costs and Service in the Transportation System
Characteristic Fixed Infrastructure Variable Costs
Examples Highways, rail tracks, airports, ports Trucks, railcars, planes, ships
Ownership Mostly public Mostly private
Lifespan Very long (decades) Short to average (5 to 20 years)
Rate of change Slow Rapid redeployment
Impact on service Shapes accessibility Shapes level of service
Competition Level the playing field Source of comparative advantages
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Retail Gasoline Prices and Annual Vehicle Mileage, United States, 1960-2020
1960
1961
1962 1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994 1995
1996
1997
1998 1999
2000
2001
2002 2003 2004
2005 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016 2017 2018 2019
2020
9,500
10,000
10,500
11,000
11,500
12,000
12,500
1 1.5 2 2.5 3 3.5
Average Annual Miles Traveled per Vehicle
Retail Gasoline Prices (2005 dollars per gallon)
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
The Provision and Demand of
Transport Services
Chapter 3.4
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Transport Supply and Demand
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
i j
Aij
i j
Realized Demand
Tij
Potential Demand
Modal Supply Intermodal
Supply
Transport Supply
Transport Demand © GTS
Ton-Miles of Transported Freight, United States, 1960-2011 (millions)
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
0
500000
1000000
1500000
2000000
2500000
3000000
1960 1970 1980 1990 2000 2010
Intercity Truck Rail Coastal Air (Right Axis)
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Passenger-Miles Transported within the United States, 1960-2014
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
1960 1970 1980 1990 2000 2010
Millions of Passenger-Miles
Highway Total Car Utility vehicles Air Intercity Rail Public Transit
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Types of Transportation Demand
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
CONSTANT DETERMINISTIC STOCHASTIC
Variable
Demand
S
D
Price
P1
Time
D1
•Proportional to a variable
•Usually linear function
•Multiplier effect
•Direct function of parameters
•All parameters known
•No uncertainty
•Multiple parameters
•Some unknown effects
•Probability of demand
E
© GTS
Growth Factors in Transport Demand
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Quantity of Passengers or Freight
Average Distance
KM
Passengers
Freight
Growth in production
and consumption
Income growth
Outsourcing / Offshoring
Economic specialization
Suburbanization
© GTS
Factors behind Freight Transport Demand
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Economy
General derived demand impact. Linked with the GDP.
Function of the structure of the economy in terms of
resources, goods, and services.
Industrial location
Effect on ton-kms and modal choice. Outsourcing and
offshoring.
Spatial structure
Effect on ton-kms. Function of international trade
structure. Major hubs, gateways and corridors.
International agreements
Concerning trade and transportation. Economic
specialization. Increased transborder traffic. Trade
facilitation. Simplified custom procedures.
JIT practices
Low inventory levels. More shipments. Smaller line
hauls. Shift to faster and more reliable modes. Use of
3rd party logistics providers.
Strategic alliances
Between carriers, shippers and often producers and
retailers. Lower distribution costs.
Packaging and recycling
Increased transportability of products. Lower
freight density. Reverse distribution.
Deregulation
Increased competition, level of service and lower
costs. Growth of intermodal transportation.
Fuel costs and subsidies
Large and volatile cost components, specifically for
energy intensive modes. Preferred mode or carrier.
Infrastructure
Efficiency, operating costs and reliability.
Safety
Operating speed, conditions and costs. Capacity and
weight limits.
Technology
Containerization, automation and robotics.
Information systems. Lower costs, increased
efficiency and reliability and new opportunities.
© GTS
Personal Consumption Expenditures by Major Type of Product, United States
28%
29%
30%
31%
32%
33%
34%
35%
36%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Billions of dollars
Services
Nondurable Goods
Durable Goods
Share Goods/Services
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Share of Total Domestic Freight Activity by Mode, Selected Countries, 1996
0%
20%
40%
60%
80%
100%
Canada France Germany Italy Japan United
Kingdom
United States
% of total domestic metric ton-km
Road
Rail
Oil Pipeline
Water
Air
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Share of Total Domestic Passenger Activity by Mode, G7 Countries, 1996
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Canada France Germany Italy Japan United
Kingdom
United States
% of total domestic passenger-km
Air Road Rail
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Static and Dynamic Capacity of Transport Infrastructure
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Static Capacity
Dynamic Capacity
Optimum nominal
capacity
Facility Expansion
Technical and Managerial
Improvement
A
1
2
3
4
© GTS
Major Supply Variables for Transportation Modes
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
ROAD RAIL AIR MARITIME
ROUTES
TERMINALS
VEHICLES
•Lanes
•Width
•Speed limit
•Tracks
•Grade
•Yards
•Transshipment
•Corridors
•Air control
•Canals
•Locks
•Parking •Runways
•Gates
•Docks
•Transshipment
•Speed
•Capacity
•Speed
•Capacity
•Speed
•Capacity
•Speed
•Capacity
© GTS
Impacts of Modal Competition and Intermodal Capacity on Transport Supply
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Traffic
Assignment
Mode A Mode B
C
Capacity
C(A)
Terminal A Terminal B
C(B)
T(AB) = C(B)
T(A)
T(B)
C = T(A) + T(B)
Modal Competition Intermodal Capacity
© GTS
Classic Transport Demand / Supply Function
𝐸𝑙𝑎𝑠𝑡𝑖𝑐𝑖𝑡𝑦 = 𝑇2 −𝑇1
𝐶2 −𝐶1
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Traffic
Cost
Demand Supply
T1
C1
D
C2
T2
Equilibrium
S1
S2
© GTS
Road Transport Elasticity by Activity
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Traffic
Cost
100%
0%
Emergencies
Commuting
Major Purchases
Special Events
Social Activities
Recreation
ΔC(6)
1
2
3
4
5
6
ΔT(6)
© GTS
Transport Supply, Demand and Travel Time
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
T>A
T<A
Transport supply (A)
Transport Demand (T)
Time of the Day
Travel time
Morning
peak Afternoon
peak
Traffic
© GTS
Transportation Yield Management
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
Rate / Fare / Toll
Remaining capacity NoneFull
Operating costs
Remaining time before scheduled capacity t0
© GTS
Average Fares Disbursed for JFK–LAX Route, 2009 (April to July)
R² = 0.9435
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
Paid Airfare
Passengers
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.
No elasticity
Low elasticity
High elasticity
Average Price of a Domestic Airfare Based on Advance Purchase, United States, 2013
300
350
400
450
500
550
600
050100150200250300350
Airfare
Days Before Scheduled Flight
Copyright © 1998-2024, Dr. Jean-Paul Rodrigue, Dept. of Maritime Business Administration, Texas A&M University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part,
in ANY form (printed or electronic) and on any media without consent. This includes conference presentations. Permission MUST be requested prior to use.