University of California Transportation Center

B2B e-Commerce facilitates the reduction of supply chain intermediaries and reduces transaction costs. This revolution has spawned a number of online marketplaces for freight transportation service procurement. The paper looks into the operational models of existing electronic freight marketplaces and the strategic behavior of shipper and carriers conducting their business in these market places. A literature survey of market clearing mechanisms models for online freight transportation market places is provided. Models for shipper-carrier strategic interaction are presented for freight transportation procurement. Some of the key research questions for developing methodologies to aid both the shippers and carriers are discussed.