Prices and costs structure in the Spanish transport of perishable in groupage loads

Abstract

This paper analyze the pricing system in force of refrigerated logistics operators in the transport of perishable goods in groupage loads, responding to how prices are determined in this transport, what influences them and how much. Using Spanish data for 2008, obtained directly from a sample of haulage firms, we formulate a model that allows the identification of the ordinary tariffs, final prices and the main components involved, and distinguishing what extent these prices reflect the cost of production resulting from the activity. Based on the estimated equations, it can state that distribution companies are pricing according to their total mean cost by using final prices expressly calculated for each customer from an ordinary tariff, reflecting the cost structure of the company, which is applied bonus depending on the requested service and the commercial policy of the company. Results represent a contribution to the transport economics literature, as they refer an economic phenomenon unexplored due to the difficulties in the measurement of prices and costs, as well as decision makers in company, which are provided with relevant information to achieve a reduction in costs.