A Study on the Selection Factors of Containers Inland Carriers Under the Korean Safe Rates System

Abstract

As the container freight rate is fixed with the implementation of the safe freight rates system for trucks in 2020, the freight factor can no longer function as a differentiated factor for shippers. As a result, domestic container inland transportation companies have become the main competitive factors for corporate’s characteristics and service-related factors, excluding cost factors in order to attract shippers. This study aims to suggest implications for the competitive strategy of shipping companies by deriving the priority of factors in selecting inland container transport truck companies for domestic shippers under circumstances excluding freight factors. Based on previous studies, four factors, i.e. company characteristics, service quality, service diversity, and additional service were pairwise-compared to determine relative priorities of alternative choices including four sub-criteria of each using AHP(Hierarchy Analysis Process). As a result, the overall ranking of main criteria of selection carrier is service quality factors, service diversity factors, additional service factors, and company characteristics factors in the order, and the priority of quality factors was revealed to be quite high compared to other factors. In detailed sub-factors, accident response capabilities, responsiveness of order, delivery on time, flexible dispatch time of vehicle, and information exchange and sharing were drawn in the order, confirming that quality, the essence of transport service, is of importance. Inland container carriers should strengthen their efforts to improve quality factors such as accident response capabilities, responsiveness of order, and delivery on time to enhance their competitiveness.