Challenging the Derived Transport-Demand Thesis: Geographical Issues in Freight Distribution

Abstract

One of the core concepts in transport and economic geography states that transportation is a derived demand, both for passengers and for freight transport alike. This assumption is reflected in the conventional literature which underlines that transport exists because it is the expression of a spatially differentiated function of supply and demand, and is thus considered to be ‘derived’ from other activities. However, recent developments in logistics and supply-chain management underline a paradigm shift in the consideration of freight transport as a derived demand. In many sectors of activity, the functions of production, consumption, and transportation have become embedded to the point that it is difficult to tell them apart. The author investigates the extent to which the concept of derived transport demand is being challenged by supply-chain management strategies. To overcome some of the inadequacies of the conventional perspective, it is suggested that several segments of freight-related activities should be considered as part of an integrated transport demand. Although operationally derived demand still applies to freight distribution, strategically—at the level of global commodity chains—integrated demand appears to be the emerging paradigm that is worth investigating further.