Measuring efficiency improvement in Brazilian trucking: A Distance Friction Minimization approach with fixed factors

• A DFM approach with fixed factors was used to assess efficiency in Brazilian motor carrier industry.
• Results show that the types of cargoes and regions play significant role in improving potentials.
• Results also suggest that certain decisions may favor a more efficient operation.

This paper investigates paths for improving efficiency in the Brazilian motor carrier industry, which has undergone significant transformations since the economy deregulation in the mid 1990s. The main research objective is to determine whether or not different types of cargoes and geographic regions serviced significantly impact trucking efficiency levels by applying a Distance Friction Minimization approach with fixed factors. Results support the evidence regarding a heterogeneous impact of cargo mix and route mix on input reducing and output increasing potentials. Managerial impacts in terms of fleet subcontracting and increased focus on specific transport demands are also addressed.