Interaction Between Transportation Cost and Commodity Pricing in International Trade. Dry-Commodity Export Shippers' Perspective in Malawi. The Trade Reducing Factor (original) (raw)
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2023
Understanding the transport mode choice factors that are important to the commodity shippers is one of the important key aspects to consider when aiming for efficient and effective transport planning. Over the years, several studies have been conducted in other countries trying to establish the factors that influence commodity shippers' decisions when choosing transport modes. While these factors have been unearthed, little is known about how these factors are prioritized in shipping decisions. This study therefore aimed to investigate the factors that influence transport mode choices and also examine how shippers weigh and rank these factors with regard to their importance. A descriptive research design within quantitative methodology was employed. Using a simple random sampling technique, 84 participants were recruited for this study. The findings of the study revealed that shipment travel time, transport cost, transport mode availability, and transport service reliability have an influence on how shippers choose a transport mode for their shipments. The study further revealed that transportation cost was the ranking transport modal choice factor among the factors. It was therefore recommended that the government should consider revitalising low-cost rail transportation to make it more efficient and responsive to shippers' demands.
Correlates of Transport Mode Choice: Dry Commodity Movement. A Case of Malawi
2023
Goods from Malawi face a range of challenges in competing on the international market which in part, is as a result of high transportation costs. Despite rail transportation being cheaper than road transportation, Malawi commodity shippers prefer the latter, thus affecting the pricing of the goods on the market. Therefore, the purpose of the study was to investigate the correlates of transport modal choices and the Theory of Planned Behavior (TPB) was used to guide the study. The study employed quantitative approach and descriptive research design in which a questionnaire was used to collect data from a sample of 104 respondents in a population of 141 dry commodity shippers by using simple random probability sampling technique. The key objective of the study was to determine the correlates of transport modal choice in Malawi. The study found that shipment travel time, freight costs, transport mode availability and transport service reliability had a relationship with transport modal choices that shippers made. The study therefore recommends that transport service providers should endeavor take into account these correlates for proper transport planning and management.
Analysis of transport logistics challenges affecting freight forwarding operations in Malawi
Malawi is one of the landlocked countries within sub-Saharan Africa which faces serious challenges in managing her transport logistics. The provision of predictable, reliable and cost effective transport logistics is constrained due to deficiencies in road and rail infrastructure, inefficient port and transit border operations that contribute to very high transport cost. This study was undertaken to analyse the challenges facing the transport logistics industry in sub-Saharan Africa specifically Malawi. Data was solicited from a structured questionnaire that was circulated to purposely selected members from the population of the business community with expertise in transport logistics. Results from the study are also supported by literature and indicated tha t high transport cost, deficiencies in road and rail infrastructure, inefficient port and transit border delays pose serious challenges to transport logistics.
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Journal of African Economies, 2021
We analyze the domestic transport and logistics costs of importing a 20-foot container into Africa. We run regressions on a panel of 50 African countries for the period 2006-2014 using the RE-2SLS estimator. Distance from port of arrival to the point of delivery is an important explanatory factor of cost. Time-varying variables yield additional and valuable information. For the 2010-2014 sub-period, the simulations suggest that reducing processing times and adjusting real exchange rates to PPP equilibrium levels would save 12% of the cost to import for North Africa and 37% for Central Africa.
Monetary values of freight transport quality attributes: A sample of Tanzanian firms
Journal of Transport Geography, 2011
This paper presents the findings of a stated preference research conducted in Tanzania (East Africa). The objective of the survey was to determine the relative importance as well as monetary values attached to freight transport quality attribute by shippers in this region. In-depth interviews with the logistic managers of companies that produce and ship goods were conducted. The freight transport quality attributes considered in this survey were flexibility, frequency, loss and damage, reliability, and transit time. The monetary values of these attributes have been computed as willingness to pay for their improvement as well as willingness to accept compensation for a decrease in their quality. The results show that shippers in this region consider travel time, loss and damage and frequency as the most important quality attributes. This may have relevant implications for the infrastructural transport policies to be implemented in the country.
2023
For several years, a modal shift from road to rail transport has been promoted by policymakers and industry experts as it is believed that this move would provide a basis for achieving lower transportation costs. Malawi's main goal is to reduce transportation costs and ensure that transport does not constrain its economy and the achievement of this strategic objective would be by facilitating a modal shift from road to rail transport. While all these efforts are being made, there is still not much to trigger the modal shift. This study therefore, focused on understanding the freight modal split between road and rail and went further to establish the reasons why shippers choose a particular mode of transport for their shipments. A descriptive research design within quantitative methodology was employed. Using a simple random sampling technique, 84 participants were recruited for this study. The finding of the study revealed that 87 percent of shippers use road transport because it provides a shorter shipment delivery window, reliable transport service, and availability. It is therefore recommended that the government should invest to revitalize rail transportation to make it more efficient.
A Study on Externally Driven Costs for Road Freight Transportation in Zimbabwe
International Journal of Supply Chain Management, 2023
The purpose of the study was to assess how external costs impacted on the overall performance of road freight transport sector in Zimbabwe. Both internal and external dynamics play a huge role on the decisions made by operators and mangers in freight transport business. Freight transport is key to socioeconomic development of a country and hence there is need to scrutinize how external costs impact on the performance of such entities. This was a quantitative study of road freight transport sector across Zimbabwe with a population of 1256 registered companies and a randomly picked sample size of 384. A total of 384 questionnaires were distributed and 291 were retrieved giving a response rate of 75.6%. study found out that external costs such as accidents, traffic congestion and environmental pollution, if go unchecked have a huge impact on profitability margins due to fines for non-compliance, compensation and insurance costs. The study recommends development of a company policy document that would outline the scope and actions to be taken to ameliorate the negative impact of external costs on business performance.
IMPACT OF TRANSPORTATION COST ON PRICES OF CONSUMABLE COMMODITIES IN ANAMBRA STATE
Journal of Economic Studies, 2020
The biting impact of transportation cost on prices of consumable commodities in Anambra state has triggered the consciousness and interest of policy makers due to its impact on the welfare of the populace. Hence, this study examined the impact of transportation cost by exploring its causes and effects on the prices of consumable commodities in Anambra state. To achieve this, the study used multi stage cluster sampling techniques as a survey research design. Three political wards were chosen from the three senatorial districts of the state to reflect the urban, semi-urban and rural areas. 210 copies of questionnaires were administered to the participants, but 200 were returned and made available for analysis. The returned questionnaires were analysed using mean statistics with 2.5 as cut off point. The result shows that high transportation cost which is linked to bad roads, illegal collection of money by high way patrol team, high price of motor spare parts and high fuel prices contributes to the continuous rise of consumable commodities in Anambra state of Nigeria. Thus, the study recommends among other things that Anambra state government should endeavour to maintain the major high ways and other feeder roads to reduce wears and tears on transportation vehicles, and also curtail illegal collection of money by the high way patrol team to reduce the burden on transportation costs which impacts negatively on the prices of consumable commodities in the State.
No . 06 / 10 Trade Policy and Transport Costs in Tanzania
2008
Recent studies on trade policy for low-income countries have established that high transport costs associated with poor quality infrastructure in countries such as Tanzania represent a barrier to trade and an additional source of protection to domestic producers of import competing goods. Using the analytical framework applied by Milner et al (2000) to Uganda, this study reports results for Tanzania on transport costs as a barrier to trade. The estimates are used to identify sectors most vulnerable to transport costs. The results shows that although substantive trade policy reforms have succeeded in lowering average tariff levels and associated protection, transport costs increase the level of protection for almost all sectors; notably Beverages and Tobacco, cash crops, manufactured foods and building materials. In addition, decomposition of disprotection (taxation) effects on exports shows that measures to reduce transport cost burdens on exporters are essential to improve export p...