Stephen Fitzroy (presenting), Brian Alstadt, and Derek Cutler

By: Stephen Fitzroy (presenting),

Brian Alstadt, and Derek Cutler Economic Development Research Group, Inc.

www.edrgroup.com

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Refine methods used to estimate costs of congestion on commercial vehicles

Account for differences in commodity mix at the corridor level

Assess effectiveness of commodity composition and relative costs in identifying high-impact corridors

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TTI Annual Urban Mobility Report identified commercial trucking costs by metro area

TxDOT Identified 100 most congested corridors in the state Responsible for $2.9 billion in congestion costs

(passenger and commercial vehicles combined) Can we differentiate costs by corridor to

define how investments in congestion reduction could contribute to business cost reduction and greater competitiveness?

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Truck Operating Cost Truck Time Cost Truck Reliability Cost Commodity Time Cost Commodity Reliability/Logistics Costs Capital “Lock-up” costs Perishability Just-in-time penalties

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Tarrant County (1)

Bexar County (1)

Travis County (1)

Dallas County (2)

Harris County (3)

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Corridor No.

TTI Rank

(2012)

Road Name County

Corridor Length (miles)

Avg. Ann. Daily

Traffic

Total Annual

Delay (hrs)

TTI Annual Congestion Cost ($m)

1 1 IH 35W TARRANT 3.68 150,516 2,155,991 $ 45.8

2 2 IH 635 DALLAS 8.85 208,548 5,169,892 $ 109.7

3 3 IH 45 HARRIS 9.43 262,495 5,489,764 $ 116.5

4 4 IH 35 TRAVIS 9.29 168,697 5,195,521 $ 110.3

5 7 US 59 HARRIS 3.56 171,627 1,796,657 $ 38.1

6 9 IH 35E DALLAS 5.53 210,392 2,591,336 $ 55.0

7 20 US 290 HARRIS 11.68 181,865 3,710,114 $ 78.7

8 31 IH 35 BEXAR 4.74 145,210 1,058,262 $ 22.5

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Trip Direction (for example, Northbound or Westbound) Trip Origin (by County within Texas or MSA outside

Texas) Trip Destination (by County within Texas or MSA

outside Texas) Truck Service Type (Truckload, LTL, or Private) Truck Body Type (Dry Van, Refrigerated, Auto Carrier,

Flatbed, etc.) 4-digit STCC Commodity Code

Value Volume Number of trucks

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Corridor No.

Annual Trucks

Annual Tons (mil.)

Annual Value ($mil)

Average Tons/ Truck

Average $/Ton

1 2,342,560 29.6 $ 35,213.8 12.6 $ 1,190

2 1,770,590 27.2 $ 42,312.5 15.4 $ 1,556

3 5,248,400 70.8 $ 105,611.0 13.5 $ 1,493

4 3,945,460 52.3 $ 107,754.0 13.2 $ 2,061

5 2,330,540 30.8 $ 30,593.7 13.2 $ 995

6 3,275,110 39.1 $ 56,569.8 11.9 $ 1,446

7 1,205,260 14.9 $ 24,802.0 12.3 $ 1,668

8 4,875,820 76.9 $ 195,371.0 15.8 $ 2,539

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Corridor 8 Corridor 2 Corridor 3 Corridor 7

Rank Commodity Total Value (in $ millions) Commodity

Total Value (in $ millions) Commodity

Total Value (in $ millions) Commodity

Total Value (in $ millions)

Warehousing /distribution

$ 13,305.1 Warehousing /distribution



$ 4,582.5

Motor vehicle parts

$ 12,439.5 Liquefied gases

$ 1,116.3 Drayage to/from ramps

$ 6,113.6 Electronic products

$ 3,136.7

Inorganic chemicals

$ 3,238.8 Dairy products $ 1,070.7 Oil field equipment

$ 4,516.5 Refining products

$ 641.8

Electrical Equipment

$ 3,081.7 Alcoholic Beverages

$ 1,066.4 Misc. plastic products

$ 2,300.5 Organic chemicals

$ 547.4

Motor Vehicles $ 2,977.3 Processed milk $ 1,001.9 Primary iron or steel


$ 440.2

Plastic Products

$ 2,297.0 Grain $ 849.6 Valve or pipe fittings

$ 1,949.2 Liquefied gases

$ 438.7

Primary iron or steel

$ 2,275.8 Misc. ag chemicals

$ 824.9 Organic Chemicals


$ 427.5

Misc. Food Preparations

$ 1,900.8 Bread/Bakery Products

$ 793.1 Oil refining products

$ 1,784.7 Electronic Components

$ 392.8

Plastic/ Synthetic Mat’l

$ 1,880.4 Deciduous fruits

$ 692.7 Misc. inorganic chemicals

$ 1,746.6 Primary iron or steel

$ 380.6

Misc. Combust Engines

$ 1,861.8 Processed poultry/eggs

$ 430.8 Misc. metal work

$ 1,674.2 Misc. metal work

$ 370.2

Liquefied gases

$ 1,757.2 Petroleum products

$ 403.7 Liquefied Gases $ 1,622.4 Bread and bakery

$ 320.4

Petroleum products

$ 1,359.5 Live Poultry $ 397.4 Misc. plastic products

$ 1,468.5 Valves, pipes and fittings

$ 244.3

Fuel Consumption Due To Congestion Function of congested speed (quadratic) Fuel Costs Number of trucks Length of Segment

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Corridor No.

Annual Truck Trips (in millions)

Avg. Congested

Speed (MPH)

Congested MPG

Add’l Gal./

Truck Trip

Total Add’l

Gallons

Add’l Vehicle Operating Costs

(in millions)

1 2.34 37.4 3.87 0.174 407.2 $1.63 2 1.77 43.2 4.19 0.247 437.6 $1.75 3 5.25 46.3 4.34 0.189 994.1 $3.98 4 3.95 39.4 3.99 0.364 1,436.1 $5.74 5 2.33 41.2 4.09 0.118 275.2 $1.10 6 3.28 44.9 4.28 0.126 411.6 $1.65 7 1.21 49.5 4.46 0.159 191.4 $0.77 8 4.88 51.0 4.51 0.052 255.4 $1.02

Truck Time Costs Driver time congested time (delay), driver wages, vehicle occupancy

Commodity Time Costs Opportunity cost of commodities Opportunity cost of capital (10%) Value of shipment Congestion time

Computed on an hourly basis by STCC

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Corridor No.

Annual Truck Trips

Delay-Hrs per Truck

Average Tons/Truck

Average $/Ton

Truck Time Cost

(in millions)

Commodity Time Cost

1 2,342,560 0.039 12.63 $1,190 $2.34 $25,591

2 1,770,590 0.068 15.36 $1,556 $3.06 $53,218

3 5,248,400 0.057 13.48 $1,493 $7.65 $112,062

4 3,945,460 0.084 13.25 $2,061 $8.47 $168,372

5 2,330,540 0.029 13.20 $995 $1.70 $16,249

6 3,275,110 0.034 11.94 $1,446 $2.81 $35,350

7 1,205,260 0.056 12.34 $1,668 $1.71 $25,671

8 4,875,820 0.020 15.78 $2,539 $2.48 $72,239

Buffer Time Index: Relationship between “worst” travel time and

average travel time Reliability Costs Vary by Commodity/Industry Corridor Profiles indicate how these profiles vary

Congestion Effects Measured By: Truck Reliability Costs Commodity Reliability/Logistics Costs Capital “Lock-Up” Costs Perishability Costs Supply Chain JIT Costs

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Trips (in 000's)

600

500

400

300

200

100

00 8 10 15 16.5 Minutes

StandardDeviation

95th Percentile

Measure the value of improving predictability and reducing “buffer-time”

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1

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

0% 20% 40% 60% 80% 100%

Buf

fer T

ime

Inde

x

Fraction of Travel Subject to Congestion

Truck Reliability Costs 𝒇 (Buffer Time, Truck Volume, Occupancy, Driver Costs)

Commodity Reliability Costs Capital Lock-Up Costs: 𝒇 (Buffer Hours, Commodity Value, Capital Costs)

Perishability Costs: 𝒇 (Buffer Hours, Commodity Value, Perishability Factors)

Supply Chain Costs: 𝒇 (Buffer Hours, Commodity Value, JIT Factors)

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Capital Lock-Up Costs: Costs per vehicle hour - Estimated based on value of shipment 𝒇 (𝐶𝐶𝐶𝐶 𝐶𝑜 𝐶𝐶𝐶𝐶𝐶𝐶𝐶)

Perishability Factor: Commodity Specific – Estimated by vehicle type and

commodity 𝒇(Perishability Costs: $0.0001 per $ Buffer Hour, 𝑃𝑃𝑃𝐶𝐶𝑃𝐶𝑃𝐶𝐶𝐶𝐶𝑃 𝐹𝐶𝐹𝐶𝐶𝑃: 0 ≤ 𝑇𝑃𝑇𝐹𝑇 𝑇𝑃𝐶𝑃,𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝑃 ≤ 1)

Supply Chain/JIT Factors: Commodity Specific – Estimated by Shipment mode and

Commodity 𝒇(Buffer Costs: $0.0002 per $ Buffer Hour,

𝐽𝐽𝑇 𝐹𝐶𝐹𝐶𝐶𝑃: 0 ≤ 𝑃𝑃𝐶𝐶𝐶𝑃𝐶𝐶𝐶𝑃 𝐶𝑜 𝐶𝐶𝑃𝐶 𝐿𝑇𝐿,𝐴𝐶𝑃 ≤ 1)

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Corridor No.

Congestion Buffer-Hours

per Year

Truck Reliability Cost

(in $ millions)

Commodity Logistics Cost

(in $ millions)

Commodity Logistics Cost per Buffer-Hr

1 82,894 $ 2.10 $ 0.93 $ 11.23 2 166,834 $ 4.23 $ 2.06 $ 12.37 3 267,290 $ 6.73 $ 4.33 $ 16.21 4 297,421 $ 7.67 $ 5.75 $ 19.35 5 56,333 $ 1.43 $ 0.59 $ 10.51 6 116,950 $ 2.98 $ 1.43 $ 12.21 7 56,861 $ 1.44 $ 1.05 $ 18.47 8 108,689 $ 0.97 $ 0.95 $ 8.77

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Corridor No.

Truck Operating

Cost (in millions)

Truck Time Cost

(in millions)

Commodity Time Cost (in millions)

Truck Reliability

Cost (in millions)

Commodity Logistics

Cost (in millions)

Total Corridor

Costs (in

millions)

Cost per Truck-Mile ($/mi)

1 $ 1.63 $ 2.34 $ 0.03 $ 2.10 $ 0.93 $ 7.03 $ 0.816 2 $ 1.75 $ 3.06 $ 0.05 $ 4.23 $ 2.06 $ 11.16 $ 0.713 3 $ 3.98 $ 7.65 $ 0.11 $ 6.73 $ 4.33 $ 22.81 $ 0.461 4 $ 5.74 $ 8.47 $ 0.17 $ 7.67 $ 5.75 $ 27.80 $ 0.759 5 $ 1.10 $ 1.70 $ 0.02 $ 1.43 $ 0.59 $ 4.84 $ 0.583 6 $ 1.65 $ 2.81 $ 0.04 $ 2.98 $ 1.43 $ 8.90 $ 0.492 7 $ 0.77 $ 1.71 $ 0.03 $ 1.44 $ 1.05 $ 4.99 $ 0.355 8 $ 1.02 $ 2.48 $ 0.07 $ 0.97 $ 0.95 $ 5.49 $ 0.237

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Corridor No.

TTI Direct Costs

(in millions)

Vehicle Direct Costs

(in millions)

Commodity-Based Total

Costs (in millions)

TTI Direct Costs

(per Truck)


(per Truck)

Commodity-Based

Total Costs (Per Truck)

1 $1.96 $3.97 $7.03 $0.84 $1.69 $3.00 2 $2.56 $4.81 $11.16 $1.44 $2.72 $6.30 3 $6.38 $11.63 $22.81 $1.21 $2.22 $4.35 4 $4.94 $14.21 $27.80 $1.25 $3.60 $7.05 5 $0.35 $2.80 $4.84 $0.15 $1.20 $2.08 6 $0.90 $4.46 $8.90 $0.27 $1.36 $2.72 7 $1.43 $2.48 $4.99 $1.19 $2.06 $4.14 8 $2.07 $3.50 $9.01 $0.42 $0.72 $1.85

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$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

1 2 3 4 5 6 7 8

Cong

estio

n Co

sts (

in m

illio

ns)

TTI Direct Costs


Commodity-Based Total Costs

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TTI Methodology ($mil.)

Commodity-Based Methodology ($mil)

Percent of Congestion Costs Attributable to Turck Congestion

Corridor No. Auto Truck Total Auto Truck Total

TTI Method-

ology

Estimated Congestion

Costs

TTI Truck Congestion Costs (2013)

1 $43.8 $2.0 $45.8 $43.8 $7.0 $50.8 4.28% 13.83% 20.51%

2 $107.2 $2.6 $109.7 $107.2 $11.2 $118.3 2.33% 9.43% 20.51% 3 $110.1 $6.4 $ 116.5 $110.1 $22.8 $132.9 5.48% 17.16% 20.71% 4 $105.3 $4.9 $ 110.3 $105.3 $27.8 $133.1 4.48% 20.89% 19.38% 5 $37.8 $0.4 $ 38.1 $37.8 $4.8 $42.6 0.92% 11.36% 20.71% 6 $54.1 $0.9 $ 55.0 $54.1 $8.9 $63.0 1.64% 14.13% 20.51% 7 $77.3 $1.4 $ 78.7 $77.3 $5.0 $82.3 1.82% 6.07% 20.71% 8 $20.4 $2.1 $ 22.5 $20.4 $5.5 $25.9 9.22% 21.21% 16.85%

When properly measured, costs of congestion on freight corridors provides important cost differences by corridor Current vehicle operating and driver time costs do not recognize

the importance of key trade and commodity corridors Aggregate metropolitan averages are not suitable or generalizable

for corridor-specific evaluation

Effects of delay, reliability and related measures (e.g., perishability, logistics and inventory costs) should be considered

Current time-based guidance/valuation of commercial user costs may significantly understate congestion reduction impacts, especially for trade (interstate and international) corridors This has potentially serious implications for TIGER and other

funding and prioritization decisions

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Congestion in destination metro areas (e.g., congestion in Houston) can have impacts on costs for businesses located in major trading regions (e.g., Los Angeles, Miami)

Effects of congestion on domestic through shipments may have no direct impact on local businesses, but may affect businesses costs in other regions

High volume locally-shipped commodities (e.g., sand, gravel and bulk products) can significantly affect costs for high value traded commodities (e.g., electronics, drayage) on the same corridor

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Contact: Stephen Fitzroy [email protected]

For a copy of this presentation and other EDR Group Presentations:

http://www.edrgroup.com/ited2014

To access the library of past EDR Group Papers, Projects and Presentations:

http://www.edrgroup.com/library

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mailto:[email protected]

http://www.edrgroup.com/ited2014

http://www.edrgroup.com/library

Documents

Stephen Fitzroy (presenting), Brian Alstadt, and Derek Cutler