The impacts of time of day pricing on the behavior of freight carriers in a congested urban area: Implications to road pricing
All authors:
José Holguın-Veras, Qian Wang,Ning Xu, Kaan Ozbay, Mecit Cetin, John Polimeni
Host organisation:
CoE Southern California U, USA
Country: United States of America
Publication year: 2006
Published in:
Elsevier, Transportation Research
Research theme: Management and Control, Urban Freight
Road pricing; Behavioral impacts; Freight carriers; Trucking
Research article
This paper describes the key findings from a major research project aimed at assessing the impacts of the Port Authority of New York and New Jersey´s time of day pricing initiative on the behavior of commercial carriers. The paper, believed by the authors to be the first comprehensive study on the subject, highlights key implications for road pricing policy. One of the most interesting findings is that carriers respond to time of day pricing by implementing multi-dimensional responses involving Productivity increases, Cost transfers, and Change in facility usage. This implies a more nuanced response than suggested by micro-economic theory, which would only predict a change in facility usage. In fact, no carrier was found to have responded by implementing only changes in facility usage, which leads to the authors to believe that this is a last resort alternative. In terms of numerical importance, three combinations of strategy groups represent almost 90% of the cases: Productivity increases (42.79%), followed by Changes in facility usage and Cost transfers (27.60%) and Productivity increases and Changes in facility usage and Cost transfers (19.32%). The fact that some of these responses impact only the carrier (i.e., Productivity increases) while others mostly impact the receivers (Changes in facility usage and Cost transfers) lead the authors to believe that the nature of the response is determined by the balance of power between carriers and receivers. If carriers dominate the relationship, then it is likely that policies that mostly impact receivers are implemented; otherwise, the carriers have no choice but implementing strategies that help them cope with the impacts of pricing without impacting their customers, i.e., productivity increases. In this context, the authors´ conjecture is that carriers consider changes in facility usage to be a very disruptive alternative that forces them—and more importantly their customers—to alter their shipping/delivery patterns. It should be pointed out that, although carriers stand to benefit from working during the off-peak hours, they could only do so if their customers are willing to work during the off-peak hours. The data indicate that 36 carriers (20.2%) changed behavior because of the time of day pricing initiative. This number includes 17 carriers (9.0%) that reacted by increasing shipping charges to receivers, which illustrates the need to find out more about how receivers reacted to the time of day pricing initiative. If the carriers that only increased shipment charges are excluded, 15.3% of carriers changed behavior because of time of day pricing.
June 2022
Upcoming Events
Mo Tu We Th Fr Sa Su
v22      1 2 3 4 5
v23  6 7 8 9 10 11 12
v24  13 14 15 16 17 18 19
v25  20 21 22 23 24 25 26
v26  27 28 29 30      


Invitation to submit an Expression of interest in writing a think piece: gender informed mobility planning. Pdf, 622.2 kB. (Pdf, 622.2 kB)

This invitaton is an opportunity for scholars in sub-Saharan Africa to write a think piece on the theme of “Gender-informed mobility planning, governance and policy in African cities: status, barriers, ways forward.” Through this invitation, VREF welcomes expressions of interest (EoI) for a commissioned work on this theme.

Read more here....

Deadline: 15 May 2022


Catalysing Curriculum Change at Universities in SSA 2022 Pdf, 1.3 MB. (Pdf, 1.3 MB)

This Call is an opportunity for scholars and teachers in sub-Saharan Africa to contribute to
renewing university-based education, while also strengthening knowledge and capacity among the next generation of SSA researchers and practitioners.

Deadline: 15 June 2022


The VREF invites PhD students and researchers in early stages of their career to apply for a Study Visit Grant to be supported with up to SEK 30 000.

MOBILITY GRANT 2022- MAC-MG 2022 Pdf, 447.1 kB. (Pdf, 447.1 kB)

The VREF invites PhD students and advanced master students from Sub-Saharan African (SSA) universities to apply for a Mobility Grant (MG) to support a visit to another SSA university with up to SEK 25 000.

Lee Schipper Memorial Scholarships for Sustainable Transport and Energy Efficiency targets supporting the momentum of Lee Schipper’s contribution to the international policy dialogue in these fields.

This yearly award is aimed at supporting young individual researchers and students in is pursuance.

Call deadline now extended to: April 4, 2022 .


Blog! Blog! Blog!

Global Mobility Research

This Meeting of the Minds' blog monthly releases interviews of global transportation researchers from the VREF's Future Urban Transport Program Network.


This CityFix series, produced by the WRI (World Ressources Institute) Ross Center for Sustainable Cities and supported by the VREF, discusses walking and cycling in cities with a special focus on low- and middle-income countries.

About VREF

The Volvo Research and Educational Foundations (VREF) inspires, initiates and supports research and educational activities through the Future Urban Transport Programme - How to deal with the complexity of urban transport (FUT). 

Our Vision: Sustainable transport for equitable access in urban areas


© Copyright VREF