Logistics Costs in Norway, Survey Results, Calculations and International Comparison



Logistics Costs in Norway, Survey Results, Calculations and International Comparison

Authors

W Hansen, I Beate Hovi, Institute of Transport Economics, NO

Description

In this paper we estimate the costs of logistics in Norway and compare our findings with similar studies from other countries.

Abstract

"The paper estimates the costs of logistics in Norway and compares our findings with similar studies from other countries. The paper calculates the costs of logistics in three different ways: i) on industry level through a survey of Norwegian manufacturing and wholesale trade, ii) on the macro level by aggregating the survey results up to a share of Norwegian GDP, and iii) by applying the Norwegian national freight transport model.
Norway is located in the periphery of Europe. The country?s remoteness places Norwegian industry far away from the main European marketplaces. The disadvantage of geography in a competitive environment enhances the importance of cost-efficient logistics. Norwegian exports are to a large extent raw materials and semi-finished products and Norwegian companies are as a result often part of a larger supply chain. The relative cost level in Norway compared to other countries is high, putting the Norwegian export industry at a disadvantage as regards price. These are factors that underline the importance of cost-efficient logistics operation in the Norwegian export industry.
We find that the estimated cost of logistics in Norwegian manufacturing and wholesale trades, as well as the estimated costs of logistics on a macro level, are in line with results from similar international studies. Our findings show that the disadvantage of distance does not result in a higher logistics costs share for Norwegian companies.
This study is part of the research project ?Logistics in Norway?, a research project carryed out by The Institute of Transport Economics - Norwegian Centre for Transport Research, and funded by the Research Council of Norway and the Norwegian Road Administration.

Publisher

Association for European Transport