Analysis of the Impacts of Freight Subsidisation on Transport Mode Selection: An Assessment of the Tasmanian Freight Equalisation Scheme

Richard J. Wise, Peter D. Fanam


The objective of this research is to identify the key selection criteria that form the basis of a shipper’s selection of freight transport mode. The study is undertaken in the context of sea freight. The study is localised to Tasmanian shippers who are, or are potentially, recipients of freight subsidisation through the Tasmanian Freight Equalisation Scheme. Data collected through an internet-based survey is described, and influential mode choice selection criteria are reported with the use of descriptive statistics. The findings indicate that Tasmanian shippers are conscious of cost, service, and cargo characteristics.

Median responses indicate that cost, service, and cargo are equally significant in the selection process. The findings indicate that cost and cost flexibility are influential cost-based criteria. The findings also indicate that transit time, service capacity, and service flexibility are influential service-based criteria. Shipment size, cargo weight, and cargo volume are also identified as influential cargo-based criteria.

This study provides insight into mode choice selection for Tasmanian shippers. In this function, it may assist existing air and sea carriers operating in the Tasmanian market to evaluate their performance and strategy by providing an analysis of shippers’ transport mode choice process. Tasmanian shippers themselves may benefit from the potential expansion of their existing freight transport mode choice process. New shippers of freight into and out of Tasmania may benefit from the perspectives of existing shippers of freight into and out of Tasmania.

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