Scale Benefit
First Order Benefits Cost reductions to carriers and shippers. Reduced transit times and increased reliability.
Second Order Benefits Improvements in logistics. Lower inventory levels and costs.
Third Order Benefits Lower consumer costs. Improved or new products.

Source: adapted from ICF Consulting (2002) Economic Effects of Transportation: The Freight Story. http://www.icfconsulting.com/Publications/doc_files/FHWA%20Freight%20Story.pdf

Benefits of Improved Freight Transportation

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Copyright © 1998-2008, Dr. Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University. For personal or classroom use ONLY. This material (including graphics) is not public domain and cannot be published, in whole or in part, in ANY form (printed or electronic) and on any media without consent. Permission MUST be requested prior to use.