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

CHAPTER V
A TIME SERIES ANALYSIS OF BARGE FIRM COSTS
In the preceding parts of this study, the costs associated
with the linchaul equipment have been analyzed. As has been pointed
out, however, this equipment must be co-ordinated by the barge firm
in order to satisfy, at the least cost, the demands presented to it.
In this chapter, the analysis is extended to cost relationships for
the barge firm. As in the two preceding chapters, the approach
is to examine how variations in waterway characteristics, commodity
shipped, and seasonality are related to changes in the cost of
transporting freight.
• A. The Data
Detailed monthly cost and production data have been gathered
from a single firm for a period of three years. The selected firm
is among the major inland waterway operators. In terms of total
output the firm operates at the mid-range for the industry. The
firm operates a wide selection of floating equipment, varied as to
age and size. Its operations cover a major portion of the Gulf
and Mississippi River systems. Approximately 60% of its output
(in cargo ton-miles) is bulk freight. Its revenue is derived in
about equal proportions from bulk commodities and general cargo.
The total expenses of the firm have been broken down into
three expense categories: overhead expense, direct barge expense,
and direct terminal expense. Direct barge costs are all those
costs related to the actual movement of freight. Included here
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