Previous research has highlighted that freight pricing, in isolation of
other policies, is of limited effectiveness in moving truck traffic to
the off-hours. This is because the price signal reaching receivers
is of no significance when compared to the marginal costs of moving to
the off-hours. Since
receivers are the carriers' customers, it is impossible for the
carriers to switch to the off-hours without receivers willing to
accept deliveries beyond their regular hours.
The fundamental premises of the project are that:
Receivers, by virtue of being the carriers' customers, have a
significant power in setting delivery times and, consequently, trucks'
time of travel.
- Carriers cannot switch operations to the off-hours, without receivers willing to accept Off-Hour Deliveries (OHD).
In equality of conditions, carriers will prefer to deliver during the
off-hours because of the higher productivity and lower costs (even
when paying prime wages to the crews).
- The carriers' cost savings are not large enough to enable shipping cost discounts large enough to attract receivers to OHD.