A calculation framework and tools to estimate freight rate ... - Chalmers
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A calculation framework and tools
to estimate freight rate and carbon
emissions for road transport
Master¡¯s thesis in Supply Chain Management
Yinfan Hu
Daqi Liu (University of Gothenburg)
DEPARTMENT OF TECHNOLOGY MANAGEMENT AND ECONOMICS
DIVISION OF SERVICE MANAGEMENT AND LOGISTICS
CHALMERS UNIVERSITY OF TECHNOLOGY
Gothenburg, Sweden 2020
chalmers.se
Report No. E2020:104
REPORT NO. E 2020:104
A calculation framework and tools to estimate
freight rate and carbon emissions for road
transport
A study at Volvo Group Trucks Operations
Yinfan Hu
Daqi Liu
Department of Technology Management and Economics
Division of Supply Chain Management
CHALMERS UNIVERSITY OF TECHNOLOGY
Gothenburg, Sweden 2020
A calculation framework and tools to estimate freight rate and carbon emissions for road transport
A study at Volvo Group Trucks Operations
Yinfan Hu
Daqi Liu
? Yinfan Hu, 2020.
? Daqi Liu, 2020.
Report no. E2020:104
Department of Technology Management and Economics
Chalmers University of Technology
SE-412 96 G?teborg
Sweden
Telephone + 46 (0)31-772 1000
Gothenburg, Sweden 2020
A calculation framework and tools to estimate freight rate and carbon emissions for
road transport
A study at Volvo Group Trucks Operations
Yinfan Hu
Daqi Liu
Department of Technology Management and Economics
Chalmers University of Technology
SUMMARY
The high-quality estimation methods for the freight rate and carbon emissions of road transport are not
only important to improve a company¡¯s performance but also valuable to academia. This research
designed a framework embedded in a user-friendly computer tool to estimate the road freight rate and
transport carbon emissions. This tool is tested by estimating fright rates for various scenarios to meet
the business and operational demand of a case company, The Volvo Group. The framework is
designed based on the cost breakdown theory, which comprises of two sections. The first section
estimates the road freight rate, while the second section estimates the carbon emissions. Firstly, all
cost elements for both sections are identified. Each cost element is then studied and the most suitable
estimation method for each cost element is selected. Besides, considering the constraints and settings
of Volvo, specific sets of calculation methods are designed to acquire the estimated freight rate and
carbon emissions for different transport set-ups at Volvo.
In order to transform the theoretical framework into a user-friendly computer tool, two types of tools,
one using Excel spreadsheets and the other using the Excel VBA are developed for the case
company. The validation of the framework is conducted through the estimation of a set of scenarios at
the case company. The framework could demonstrate the rate structure and the carbon emissions for
the scenarios. Further, it could help the company to identify the major cost elements and prioritize
efforts in achieving cost savings. The differences between the bid prices and the estimated freight
rates are analyzed and interpreted from the aspects including imbalanced flow, relative power, and
operation-efficiency among carriers. In the case company, the imbalanced flow and different features
among carriers are proved to have more influence on the freight rate, while the relative power is not
regarded as a source of gaps.
Keywords: cost breakdown theory, cost elements, road freight rate, transport carbon emissions,
transport service purchasing, Excel VBA, estimation framework
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