@article{Jessup:207935,
      recid = {207935},
      author = {Jessup, Eric and Meenach, Stephanie and Casavant, Ken},
      title = {Modeling Containerized Hay Shipments in the Pacific  Northwest: Investigating Cost and Volume Impacts as Port of  Portland Container Services is Reduced},
      address = {2007-03},
      number = {1428-2016-118578},
      pages = {12},
      year = {2007},
      abstract = {A recent issue impacting freight shipments in Washington  State involves the reduction of container
services at the  Port of Portland, Oregon. Prior to this change, export  containers filled with hay were
shipped almost exclusively  via barge down the Columbia River to the Port of Portland.  After reaching
Portland, the containers were then loaded  onto one of three ocean container lines: Hyundai,  K-Line,
or Hanjin and destined to markets in Japan and  China. As of September 2004, Hanjin is the only
remaining  carrier that calls at the Port of Portland.
This research  effort has collected firm level data on the production,  transportation and marketing of
hay in Washington and  incorporates this information in the design and development  of a
transportation optimization model of regional hay  movements. This model is then utilized to evaluate
industry  shifts in transportation usage and modal choice in reaction  due to these industry changes
after September 2004.
The  results indicate that after all barge and hay shipments are  eliminated into Portland, region-wide
transportation costs  actually decrease initially overall, while some individual  producers experience
increased shipping costs. Both rail  and truck volumes increase substantially in the absence  of
container shipments on barge. The total industry impact  is a $6.3 million increase in transportation
costs from the  Base Scenario to Scenario 3. Also, once truck rates are  allowed to increase due to the
shortage of trucks and the  increased demand for truck services, the total  transportation cost
increases by $8.7 million.
As trucking  rates increase due to the increased demand for trucking  services, the industry
transportation cost does increase to  $47.5 million, a 15 percent increase from Scenario one and  a 22
percent increase from Scenario two. While this  increase is significant, it is not as severe or adverse
as  previously expected throughout the Pacific Northwest  agricultural and hay industry. As expected,
there is  greater reliance on rail and truck transportation once  barge shipments to Portland are
eliminated.},
      url = {http://ageconsearch.umn.edu/record/207935},
      doi = {https://doi.org/10.22004/ag.econ.207935},
}