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Container transshipment and port competition

Author

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  • Min Ju Bae
  • Ek Peng Chew
  • Loo Hay Lee
  • Anming Zhang

Abstract

The purpose of this paper is to study container port competition for transshipment cargo in duopoly market. We develop the linear container handling demand function which incorporates transshipment traffic, and apply a non-cooperative two-stage game to a vertical-structure seaport market with ports as upstream players and shipping lines as downstream players. The drivers behind port competition are explained through existence of the unique Nash equilibrium which incorporates shipping lines' port call decisions and ports' pricing strategies. A port collusion model and social optimum model are then analysed for further insights, and a numerical simulation is conducted to demonstrate the results.

Suggested Citation

  • Min Ju Bae & Ek Peng Chew & Loo Hay Lee & Anming Zhang, 2013. "Container transshipment and port competition," Maritime Policy & Management, Taylor & Francis Journals, vol. 40(5), pages 479-494, September.
    • Handle: RePEc:taf:marpmg:v:40:y:2013:i:5:p:479-494
    DOI: 10.1080/03088839.2013.797120
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    References listed on IDEAS

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    17. Zeng, Qingcheng & Wang, Grace W.Y. & Qu, Chenrui & Li, Kevin X., 2018. "Impact of the Carat Canal on the evolution of hub ports under China’s Belt and Road initiative," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 117(C), pages 96-107.
    18. Song, Dong-Ping & Lyons, Andrew & Li, Dong & Sharifi, Hossein, 2016. "Modeling port competition from a transport chain perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 75-96.
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