Dynamic Pricing System for Physical Internet Enabled Hyperconnected Less-than-Truckload Freight Logistics Networks
Author(s)
Zhang, Tiankuo
Nourmohammadi, Paria
Guerin, Sixtine
Montreuil, Benoit
Erera, Alan
Advisor(s)
Editor(s)
Collections
Supplementary to:
Abstract
Less-than-truckload (LTL) shipping plays a critical role in modern supply chains by consolidating freight from multiple shippers into shared vehicles. Despite its operational flexibility and potential sustainability benefits, the LTL sector faces persistent challenges, including high per-unit costs and financial instability, as evidenced by recent industry bankruptcies. This paper investigates two structural issues limiting LTL performance: the constrained consolidation potential imposed by proprietary logistics networks, and the inefficiency of fixed pricing models that fail to reflect real-time network conditions. To address these, we explore a Physical Internet (PI)-enabled, hyperconnected LTL logistics system based on open asset sharing and dynamic flow consolidation. We then propose a dynamic pricing framework tailored for this network. Through a simulation-based study grounded in Freight Analysis Framework data and cost estimates from industry sources, we evaluate system performance across three demand and cost uncertainty scenarios in the Southeastern U.S. The results validate our system’s effectiveness and suggest a promising path forward for building more efficient LTL logistics operations.
Sponsor
Date
2025-06
Extent
Resource Type
Text
Resource Subtype
Proceedings
Rights Statement
Unless otherwise noted, all materials are protected under U.S. Copyright Law and all rights are reserved