THE IMPACTS OF TRANSPORTATION DEREGULATION ON WHEAT SHIPMENTS IN THE PACIFIC NORTHWEST

A network programming model (NETFLOW) was used to examine the impact of modal transport rate changes resulting from transportation deregulation on modal traffic shares and total wheat transport costs. The analysis reveals that shifts in wheat traffic to rail and away from truck-barge and truck are related to rail deregulation. The model also provides evidence that lower rates under transportation deregulation have significantly decreased the total cost of shipping wheat from country origins to export elevators.