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Cooperation among freight forwarders: Mode choice and intermodal freight transport

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  • Saeed, Naima

Abstract

The objective of this paper is to compare vertical and horizontal cooperation among freight forwarders. The paper analyses three freight forwarders (‘players’) with two different means of transportation. The first two players are truck-operating freight forwarders. The third player is a freight forwarder with its own ship. For the purposes of analysis, the paper applied a two-stage game. The results revealed that the best form of cooperation is the one in which the large truck-operating company would establish a coalition with the ship-operating company; that is, vertical cooperation. This cooperation would generate better payoffs in the form of profit, not only to the members of this coalition, but also to the player that has not joined the coalition. However, user surplus is negative in all coalitions, which shows that the establishment of these kinds of cooperation is not beneficial (in terms of prices) for the users of these service providers.

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  • Saeed, Naima, 2013. "Cooperation among freight forwarders: Mode choice and intermodal freight transport," Research in Transportation Economics, Elsevier, vol. 42(1), pages 77-86.
    • Handle: RePEc:eee:retrec:v:42:y:2013:i:1:p:77-86
    DOI: 10.1016/j.retrec.2012.11.005
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    Cited by:

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    5. Emeric Lendjel & Marianne Fischman, 2013. "Transaction costs of inland river transport for urban logistics in France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00978092, HAL.
    6. Mariia OLKHOVA & Yurii DAVIDICH & Dmytro ROSLAVTSEV & Nataliia DAVIDICH, 2017. "The Efficiency Of Transportating Perishable Goods By Road And Rail," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 12(4), pages 37-50, December.
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    11. Zhang, Li-Hao & Liu, Chunxiao & Zhang, Cheng & Wang, Shanshan, 2023. "Upstream encroachment and downstream outsourcing in competing shipping supply chains," International Journal of Production Economics, Elsevier, vol. 255(C).
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    More about this item

    Keywords

    Freight forwarders; Intermodal-transport; Game theory; Bertrand model; Coalition;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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