European Journal of Social Sciences – Volume 16, Number 3 (2010) 429 A Study of the Effects of Road Traffic Congestion on Freight Movement in Lagos Metropolis S. O. Fadare Obafemi Awolowo University,Ile Ife, Nigeria E-mail: Sfadare23@gmail.com B. B. Ayantoyinbo Department of Transport Management, Ladoke Akintola University of Technology Ogbomoso, Nigeria E-mail: benedictboye@yahoo.com Abstract Traffic congestion is a significant problem for modern society, but it is a necessary evil. The effect of congestion to a shipper means longer travel times, decrease in vehicle utilization, decreased in fuel efficiency, higher cost of fleet operation, shrink in market coverage, higher cost of shipment, less reliable pick-up and delivery times for truck operators. A sample size of 85truck drivers, 91 shippers and 108 suppliers were selected using stratified sampling techniques with the aid of well-structured questionnaires. Multiply regression analysis was used in analyzing the data obtained. The result of the findings revealed that congestion decrease vehicle utilization, decrease fuel efficiency, increase cost of fleet operation, shrink market coverage and increase cost of shipment. Keyword: Congestion, Metropolis, Shippers, Travel Time Variability, Freight Movement 1. Introduction Metropolis act as prime movers of economic growth of any country. Sankaran et al. (2005) suggest that about 8% of GDP growth in developing countries is expected to accrue from cities. Our economy and social well-being are critically dependent on the road haulage system (Mckinnon, et al 2007). A recent study conducted by the Portland Business Alliance, Port of Portland and Metro found that congestion will cost the local economy 6,500 jobs and $844 million a year by 2025, including lost worker productivity, higher transportation costs and lost business earnings. Congestion means longer travel times, increased costs, and less reliable pick-up and delivery times for truck operators. To compensate, motor carriers typically add vehicles and drivers and extend their hours of operation. Over time, most of these costs are passed along to shippers and consumers. The Federal Highway Administration (FHWA) estimates that increases in travel time cost shippers and carriers an additional $25 to $200 per hour depending on the product carried. The cost of unexpected truck delays can add another 50 percent to 250 percent. (Schrank and Lomax, 2003) Similarly, Adenle (1981), cited in Somuyiwa (2008), noted that traffic congestion problem becomes so manifest when measure in terms of delays, which can be defined as the time lost by vehicle due to traffic friction that are likely to be caused by other vehicle’s inefficiencies or ineffectiveness as in the case of breakdowns, accidents, parking and maneuvering problems. Congestion arises out of the conjunction of two factors. The first is that every process has a finite capacity. The second is that every process has a stochastic character. That is; there is some degree of randomness in both the demands placed on a process to service those demands (Marvin,