SOFTICE: Survey on Freight Transport Including a Cost Comparison for Europe

To achieve a better understanding of freight transport costs in Europe, a Survey on Freight Transport Including a Cost Comparison for Europe—SOFTICE—was sponsored by the European Commission and intended to answer two fundamental questions: (a) which factors affect freight cost structure and demand for transport and (b) how may a change in transport policy affect transport costs and, consequently, the relative competitiveness of industries in different countries? First, SOFTICE focused on the main parameters affecting cost structure. A cost data collection survey was conducted with a group of 40 European shippers. The main methodological issues were developed for market segmentation, types of integrated supply chains, and quality of service, which were used to analyze the situation and test the effects of various factors and market sensitivities. The consequences of different policies of taxation and cost internalization on spatial production organization were assessed. A second shippers’ survey was conducted to evaluate the shippers’ reactions to policy changes in European countries. An overview of freight cost structure is provided, and survey results are presented for shipment costs and the effects of working hour regulations. Selected findings from the main methodological issues are emphasized. Key features of the shippers’ reactions to policy changes are outlined, and lessons learned on pricing and policy coordination are identified.