Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

items have a greater need to use the fastest means of
transportation and can withstand higher transport costs
,
than can low value items.' 16
.
He assumes each distribution of prices in each commodity
group is the same, i.e. if the average value per pound is 74,
the percentage of goods above $1.00 per pound in that
group is easily calculated. Multiplying these percentages
times the tonnages actually moved in that commodity group
yields a schedule of value per pound versus total tonnage.
Assuming that commodities can generally withstand trans-
portation costs between 10-20% of their value, taking 157
of their values yields a schedule of rates versus tonnage
which would just move at that rate. Obviously all tonnages
moving at a high rate would also move at lower rates. By
such a method Brewer traces out a demand curve for 1957
as shown below:
Cents
Per
35
ao
% O•
Ton-Mile
• loo woo . • . moo Tons
•
Diagram 1-2
• 16 Stanley Brewer, The North Atlantic Market for Air Freight,
(Renton, Washington, The Boeing Co., 1962), p. 17.
12