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Are the semis being subsidized, or the consumption habits of end consumers? Wear on the road network is just one of the externalities of trucking that is incomp
by rz2k 9y ago
Are the semis being subsidized, or the consumption habits of end consumers? Wear on the road network is just one of the externalities of trucking that is incompletely priced, but shipping companies aren't driving trucks around for their own amusement.
- tikhonj 9y agoThe way a company like a retailer delivers goods is an implementation detail under their control, not dictated purely by consumer habits. If the cost structure of shipping by truck changed, retailers would do a better job of traffic optimization or would even work out new operational processes that used fewer trucks. I know first-have that the current system has some real slack even at large retail chains. Example: a lot of companies are not doing a great job of planning multi-hop truck routes and instead send a less full truck to every location. Similarly, the trucks are only full in one direction because that's easier to manage than planning routes that, for example, drop off at a store then visit a vendor before returning to a distribution center. If trucking costs increased in proportion to road wear, you can bet improving these operational processes will be a higher priority!
- jessaustin 9y ago...less full truck... Every time we've gotten a truck-shipped freight delivery in the last decade, the trailer has been mostly empty. Our business is not at the end of the road, either.