Port and modal allocation of waterborne containerized imports from Asia to the United States

An economic optimization model of waterborne containerized imports from Asia to the USA is described. Imports are allocated to alternative ports and logistics channels so as to minimize total transportation and inventory costs for each importer. Logistics channels include direct shipment of marine containers via truck or rail, and trans-loading in the hinterlands of the ports of entry from marine containers into domestic trailers or containers. The model was exercised with 2004 actual transportation costs, import volumes and declared values, plus a range of hypothetical container fees assessed on imports routed via the San Pedro Bay Ports. The results show that, without reductions in container movement lead times, container fees would result in significant diversion of cargoes to other ports. In contrast, if infrastructure is improved such that lead times for container movement are significantly reduced, the model predicts little or no decrease in overall imports via San Pedro Bay but a substantial increase in trans-loaded imports for fees ranging up to $200 per 40-foot container.