Vendela Santén

Shippers’ opportunities to increase load factor: managing imbalances between required and available capacity

ABSTRACT Improving load factor is relevant for shippers due to its potential in reducing both transport costs and emissions. The purpose is to structure shippers’ opportunities to increase load factor according to required and available capacity. A framework is developed from literature, and in-depth understanding is provided by three cases, with data mainly collected through semi-structured interviews. Shippers’ opportunities to increase load factor are structured per decreasing, increasing, or reallocating required or available capacity. Required capacity can be changed by adjusting number of items, item characteristics, and how items are combined. Available capacity can be changed by adjusting number and type of units. Changes that improved load factor are described in detail for each case. Load factor is calculated for the packaging and shipping levels. An approach that logistics managers can apply to identify opportunities relevant to their situations is presented. Findings are relevant to researchers within transport efficiency and green logistics.

Shippers’ transport effciency: An approach for measuring load factor

One key aspect of effcient transport is load factor: the load carried compared to the maximum load that could be carried in a load unit (e.g. a vehicle). The purpose of this study is to develop an approach that will clarify and describe ways in which shippers can measure load factor. Drawing on existing literature and understanding gained from empirical data the proposed approach uses the load factor model, which structures measurement of load factor overall and at several levels (packaging, shipping, vehicle, fleet) as the ratio of required to available capacity. Shipping level includes utilization of purchased capacity, which is of special interest to shippers. For applying the model in practice, calculation methods linked to availability of data are presented. Calculations of volumetric load factor from two cases illustrate the methods. This paper’s detailed descriptions of how shippers can measure load factor provide calculation structure as well as transparency. Measuring load factor is of interest to evaluate effciency, particularly since load factor is related to transport costs and environmental performance.