Transport Rates and Network Structure

Transport rates can be influenced by the network structure since it shapes the quantity of traffic at different links and nodes and therefore the potential for economies of scale.

• Diffused network. An extended service (left side) would be characterized by low frequencies and smaller shipments, resulting on high rates on many segments of the network. This is particularly the case for peripheral nodes.
• Centralized network. A centralized network structure (right side) has less links and a consolidation of flows at hubs. It results in lower rates on several segments that have a higher frequency of service, notably those between hubs.