2008•Transportation Research Board 87th Annual MeetingTransportation Research BoardRequires access
Competition in the Container Trucking Industry
Rob Konings
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Abstract
The functioning of the container trucking industry can be addressed as a paradox: container transport is a booming business and therefore it is also a growth market for road transport, but in spite of this the trucking industry has great difficulties to operate profitable. Increasing competition of the alternative modes, rail and barge, plays a part, but the major explanation for the bad profitability is related to the market structure of the container trucking industry. Its market structure fits to the theoretical model of perfect competition. This model is used to explain and illustrate the behavior in the container trucking industry. In addition, this model is used to identify clues to improve the profitability of the sector. Promising strategies include offering added value services and increasing the scale of operation.