Data-driven risk assessment for truckload service providers
Author(s)Chittella, Sriram Kishore; Machado Teixeira, Marcos
Massachusetts Institute of Technology. Engineering Systems Division.
Daniel W. Steeneck.
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Non-asset backed third-party logistics companies provide shippers access to a flexible source of capacity through transportation carrier spot market. The increased volatility in the trucking spot market rates is turning the 3PL businesses more risky and complex. To maximize profitability, a better understanding of the risk and the volatility patterns across the different geographies, time periods and other factors are investigated based on three years of real spot market data from a major 3PL company in US. Throughout this research we investigate the nature of trucking spot market volatility to allow truckload service providers to reduce their risk when setting long-term contracts. Using three different measures of volatility we are able to assess the company's risk profile and arise with insights to improve truckload service providers' business.
Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Engineering Systems Division, 2015.Cataloged from PDF version of thesis.Includes bibliographical references (pages 78-79).
DepartmentMassachusetts Institute of Technology. Engineering Systems Division.
Massachusetts Institute of Technology
Engineering Systems Division.