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Abstract
This research paper focuses specifically on the frequent and persistent problem of truck shortages which
occur for shipment of time-sensitive, perishable produce out of the Pacific Northwest. Washington State
is the number one apple producing state in the U.S., producing over 2.7 million tons of apples per year
valued at over $1 billion. However, without timely and accessible transportation to move the product from
production to the table of the consumer, the value to apple producers and the states’ economy diminishes
rapidly.
This research aims to identify and quantify the change in total transportation cost which occur as a result
of seasonal truck shortages and associated rate increases and to provide an avenue for evaluating
changes at specific destination markets, modal changes and market competitiveness. This is
accomplished by utilizing a cost-minimizing optimization model representing apple shipments from 29
producing supply points to 16 domestic markets and 3 international export markets over four seasons and
two mode options (truck and rail).
Total transportation costs increase nearly $12 million as a result of truck shortages, going from $245.6
million without shortages to $257.5 million under the current seasonal situation.
Overall (across all seasons), the export markets of the Nogales, McAllen and the Port of Seattle
experience the greatest negative impact as a result of truck shortages, followed by domestic markets
within close proximity of Washington at Seattle and San Francisco. The Large markets of New York and
Los Angeles also experience relatively large increases in transportation cost per tonmile.