A cost calculation model for urban delivery of parcels by river

• Published in: Research in transportation business & management 2023-12, Vol.51, p.101059, Article 101059
• Main Authors: Yahyaoui, Hiba, Jaegler, Anicia, Randrianarisoa, Laingo
• Format: Article
• Language: English
• Subjects: Cost model; Inland waterway; Last mile delivery; Parcels; River logistics
• ISSN: 2210-5395; 2210-5409
• DOI: 10.1016/j.rtbm.2023.101059

Public and private actors in cities have embarked on a race to achieve net-zero carbon emissions. However, parcel delivery in urban areas is booming, especially due to e-commerce. This context necessitates the study of sustainable transportation use. Among the various city-center parcel delivery modes, delivery by river is largely understudied. This study proposes a cost calculation model for delivery by inland waterways. This model considers fixed and variable costs for pre-carriage, transshipment, and last-mile delivery using a two-echelon last-mile delivery network framework. The model is tested using a real-life French case study and worldwide academic investigation. The results show that load optimization is key for profitability and that the most important costs are personnel and investment costs. •A cost calculation model for delivery by inland waterways is developed.•Fixed and variable costs are calculated for pre-carriage, transshipment, and last-mile delivery.•The proposed model uses a two-echelon last-mile delivery network.•Personnel and investment are the most impactful costs.•Load optimization is a key element for profitability.