Data-driven risk assessment for truckload service providers

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.

Department dc:contributor.department

Massachusetts Institute of Technology. Engineering Systems Division.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2015

Authors dc:creator

• Chittella, Sriram Kishore
• Machado Teixeira, Marcos

Advisor dc:contributor.advisor

• Daniel W. Steeneck.

• Engineering Systems Division.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/99808

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/99808