Port pricing: Principles, structure and models
AbstractPrice level and price transparency are input to shippers’ choice of supply chain and transport mode. In this paper, we analyse current port pricing structures in the light of the pricing literature and consider opportunities for improvement. We present a detailed overview of pricing criteria, who sets prices and who ultimately foots the bill for port-of-call charges, cargo-handling fees and congestion charges. Current port pricing practice is based on a rather linear structure and fails to incorporate modern pricing tools such as price differentiation or revenue management. Consequently, ports apply neither profit maximising pricing nor pricing designed to exploit available capacity more efficiently.
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Bibliographic InfoPaper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2014006.
Length: 27 pages
Date of creation: Apr 2014
Date of revision:
Contact details of provider:
Postal: Prinsstraat 13, B-2000 Antwerpen
Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/
More information through EDIRC
Infrastructure pricing; Pricing models; Seaports;
Other versions of this item:
- D49 - Microeconomics - - Market Structure and Pricing - - - Other
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-18 (All new papers)
- NEP-COM-2014-04-18 (Industrial Competition)
- NEP-TRE-2014-04-18 (Transport Economics)
- NEP-URE-2014-04-18 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
- Meersman, Hilde & Pauwels, Tom & Van de Voorde, Eddy & Vanelslander, Thierry, 2010. "Applying SMC pricing in PPPs for the maritime sector," Research in Transportation Economics, Elsevier, vol. 30(1), pages 87-101.
- Strandenes Siri Pettersen, 2004. "Port Pricing Structures and Ship Efficiency," Review of Network Economics, De Gruyter, vol. 3(2), pages 1-10, June.
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