IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v48y2012i6p1121-1136.html
   My bibliography  Save this article

Congestion, port expansion and spatial competition for US container imports

Author

Listed:
  • Fan, Lei
  • Wilson, William W.
  • Dahl, Bruce

Abstract

The purpose of this paper is to analyze spatial competition, congestion and flows of container imports into the United States. An intermodal network flow model is developed and used to analyze congestion in the logistics system for container imports. The results indicate that congestion exists at most ports and its consequences are to raise costs at these nodes, and in some cases to divert traffic to other routes. Finally, if each of the ports expanded, the value of marginal capacity would converge to nil, and expansion would reduce congestion costs and waiting times.

Suggested Citation

  • Fan, Lei & Wilson, William W. & Dahl, Bruce, 2012. "Congestion, port expansion and spatial competition for US container imports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1121-1136.
    • Handle: RePEc:eee:transe:v:48:y:2012:i:6:p:1121-1136
    DOI: 10.1016/j.tre.2012.04.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554512000403
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2012.04.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rodríguez, V. & Alvarez, M.J. & Barcos, L., 2007. "Hub location under capacity constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(5), pages 495-505, September.
    2. Llacer, Francisco J. Montero, 2005. "The Panama Canal:: operations and traffic," Marine Policy, Elsevier, vol. 29(3), pages 223-234, May.
    3. Leachman, Robert C., 2008. "Port and modal allocation of waterborne containerized imports from Asia to the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(2), pages 313-331, March.
    4. Fuller, Stephen & Fellin, Luis & Grant, Warren, 1999. "Grain Transportation Capacity of the Upper Mississippi and Illinois Rivers: A Spatial Analysis," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 38(01).
    5. Leachman, Robert C. & Jula, Payman, 2011. "Congestion analysis of waterborne, containerized imports from Asia to the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 992-1004.
    6. Jula, Payman & Leachman, Robert C., 2011. "Long- and Short-Run supply-chain optimization models for the allocation and congestion management of containerized imports from Asia to the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(5), pages 593-608, September.
    7. William W. Wilson & Bruce L. Dahl & Richard D. Taylor, 2011. "Impacts of Lock Capacity Expansion on Delay Costs for Grain Shipped on the Mississippi River," Journal of Transport Economics and Policy, University of Bath, vol. 45(1), pages 129-154, January.
    8. Bruno De Borger & Denis De Bruyne, 2011. "Port Activities, Hinterland Congestion, and Optimal Government Policies The Role of Vertical Integration in Logistic Operations," Journal of Transport Economics and Policy, University of Bath, vol. 45(2), pages 247-275, May.
    9. O'Kelly, M. E. & Bryan, D. L., 1998. "Hub location with flow economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 32(8), pages 605-616, November.
    10. Fan, Lei & Wilson, William W. & Tolliver, Denver, 2010. "Optimal network flows for containerized imports to the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 735-749, September.
    11. Leachman, Robert C. & Jula, Payman, 2012. "Estimating flow times for containerized imports from Asia to the United States through the Western rail network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 296-309.
    12. DeVuyst, Eric & Wilson, William W. & Dahl, Bruce, 2009. "Longer-term forecasting and risks in spatial optimization models: The world grain trade," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(3), pages 472-485, May.
    13. Yang, Hai & Huang, Hai-Jun, 1998. "Principle of marginal-cost pricing: how does it work in a general road network?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(1), pages 45-54, January.
    14. Jula, Payman & Leachman, Robert C., 2011. "A supply-chain optimization model of the allocation of containerized imports from Asia to the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(5), pages 609-622, September.
    15. Talley, Wayne K., 2006. "An Economic Theory of the Port," Research in Transportation Economics, Elsevier, vol. 16(1), pages 43-65, January.
    16. Lei Fan & William W Wilson & Denver Tolliver, 2009. "Logistical rivalries and port competition for container flows to US markets: Impacts of changes in Canada's logistics system and expansion of the Panama Canal," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 11(4), pages 327-357, December.
    17. Heaver, Trevor, 2006. "The Evolution and Challenges of Port Economics," Research in Transportation Economics, Elsevier, vol. 16(1), pages 11-41, January.
    18. Theo E Notteboom, 2006. "The Time Factor in Liner Shipping Services," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(1), pages 19-39, March.
    19. Ana Rodríguez-Álvarez & Beatriz Tovar & Alan Wall, 2011. "The Effect of Demand Uncertainty on Port Terminal Costs," Journal of Transport Economics and Policy, University of Bath, vol. 45(2), pages 303-328, May.
    20. Racunica, Illia & Wynter, Laura, 2005. "Optimal location of intermodal freight hubs," Transportation Research Part B: Methodological, Elsevier, vol. 39(5), pages 453-477, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leonard Heilig & Stefan Voß, 2017. "Inter-terminal transportation: an annotated bibliography and research agenda," Flexible Services and Manufacturing Journal, Springer, vol. 29(1), pages 35-63, March.
    2. Richmond Kwesi Ansah & Kwabena Obiri-Yeboah & Grace Akipelu, 2020. "Improving the freight transport of a developing economy: a case of Boankra inland port," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-22, December.
    3. Castelein, R.B. & Geerlings, H. & van Duin, J.H.R., 2019. "Divergent effects of container port choice incentives on users' behavior," Transport Policy, Elsevier, vol. 84(C), pages 82-93.
    4. Jin, Jian Gang & Lee, Der-Horng & Hu, Hao, 2015. "Tactical berth and yard template design at container transshipment terminals: A column generation based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 73(C), pages 168-184.
    5. Marina Zanne & Elen Twrdy & Bojan Beškovnik, 2021. "The Effect of Port Gate Location and Gate Procedures on the Port-City Relation," Sustainability, MDPI, vol. 13(9), pages 1-22, April.
    6. Shi, Jia & Jiao, Yuquan & Chen, Jihong & Ye, Jun & Gong, Jianwei, 2023. "A study on the evolution of competition pattern of inland container ports along the Yangtze River in China," Journal of Transport Geography, Elsevier, vol. 109(C).
    7. Zhen, Lu & Shen, Tao & Wang, Shuaian & Yu, Shucheng, 2016. "Models on ship scheduling in transshipment hubs with considering bunker cost," International Journal of Production Economics, Elsevier, vol. 173(C), pages 111-121.
    8. Ruiz-Aguilar, J.J. & Turias, I.J. & Jiménez-Come, M.J., 2014. "Hybrid approaches based on SARIMA and artificial neural networks for inspection time series forecasting," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 1-13.
    9. Manuel Herrera & Per J. Agrell & Casiano Manrique-de-Lara-Peñate & Lourdes Trujillo, 2017. "Vessel capacity restrictions in the fleet deployment problem: an application to the Panama Canal," Annals of Operations Research, Springer, vol. 253(2), pages 845-869, June.
    10. Peter Shobayo & Edwin van Hassel, 2019. "Container barge congestion and handling in large seaports: a theoretical agent-based modeling approach," Journal of Shipping and Trade, Springer, vol. 4(1), pages 1-26, December.
    11. Ryuichi Shibasaki & Takayuki Iijima & Taiji Kawakami & Takashi Kadono & Tatsuyuki Shishido, 2017. "Network assignment model of integrating maritime and hinterland container shipping: application to Central America," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(2), pages 234-273, June.
    12. Caldeira dos Santos, Murillo & Pereira, Fábio Henrique, 2021. "Development and application of a dynamic model for road port access and its impacts on port-city relationship indicators," Journal of Transport Geography, Elsevier, vol. 96(C).
    13. T. Edward Yu & Bijay P. Sharma & Burton C. English, 2019. "Investigating Lock Delay on the Upper Mississippi River: a Spatial Panel Analysis," Networks and Spatial Economics, Springer, vol. 19(1), pages 275-291, March.
    14. Paraskevopoulos, Dimitris C. & Gürel, Sinan & Bektaş, Tolga, 2016. "The congested multicommodity network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 85(C), pages 166-187.
    15. Amir Gharehgozli & Nima Zaerpour & Rene Koster, 2020. "Container terminal layout design: transition and future," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 610-639, December.
    16. Wang, Hua & Meng, Qiang & Zhang, Xiaoning, 2014. "Game-theoretical models for competition analysis in a new emerging liner container shipping market," Transportation Research Part B: Methodological, Elsevier, vol. 70(C), pages 201-227.
    17. Bi Wang & Kwai Sang Chin & Qin Su, 2022. "Risk management and market structures in seaport–dry port systems," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(1), pages 114-137, March.
    18. María D. Gracia & Rosa G. González-Ramírez & Julio Mar-Ortiz, 2017. "The impact of lanes segmentation and booking levels on a container terminal gate congestion," Flexible Services and Manufacturing Journal, Springer, vol. 29(3), pages 403-432, December.
    19. Naima Saeed & Dong-Wook Song & Otto Andersen, 2018. "Governance mode for port congestion mitigation: A transaction cost perspective," Netnomics, Springer, vol. 19(3), pages 159-178, December.
    20. Ma, Hoi-Lam & Wong, Collin Wai-Hung & Leung, Lawrence C. & Chung, Sai-Ho, 2020. "Facility sharing in business-to-business model: A real case study for container terminal operators in Hong Kong port," International Journal of Production Economics, Elsevier, vol. 221(C).
    21. Feng, Hongxiang & Grifoll, Manel & Zheng, Pengjun, 2019. "From a feeder port to a hub port: The evolution pathways, dynamics and perspectives of Ningbo-Zhoushan port (China)," Transport Policy, Elsevier, vol. 76(C), pages 21-35.
    22. Karol Moszyk & Mariusz Deja & Michal Dobrzynski, 2021. "Automation of the Road Gate Operations Process at the Container Terminal—A Case Study of DCT Gdańsk SA," Sustainability, MDPI, vol. 13(11), pages 1-19, June.
    23. Li, Xinyan & Xie, Chi & Bao, Zhaoyao, 2022. "A multimodal multicommodity network equilibrium model with service capacity and bottleneck congestion for China-Europe containerized freight flows," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    24. Gillen, David & Hasheminia, Hamed, 2016. "Measuring reliability of transportation networks using snapshots of movements in the network – An analytical and empirical study," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 808-824.
    25. Talley, Wayne K., 2014. "Maritime transport chains: carrier, port and shipper choice effects," International Journal of Production Economics, Elsevier, vol. 151(C), pages 174-179.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fan, Lei & Wilson, William W. & Dahl, Bruce, 2015. "Risk analysis in port competition for containerized imports," European Journal of Operational Research, Elsevier, vol. 245(3), pages 743-753.
    2. Amir Gharehgozli & Nima Zaerpour & Rene Koster, 2020. "Container terminal layout design: transition and future," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 610-639, December.
    3. Martinez, Camil & Steven, Adams B. & Dresner, Martin, 2016. "East Coast vs. West Coast: The impact of the Panama Canal’s expansion on the routing of Asian imports into the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 274-289.
    4. Leachman, Robert C. & Jula, Payman, 2012. "Estimating flow times for containerized imports from Asia to the United States through the Western rail network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 296-309.
    5. Talley, Wayne K. & Ng, ManWo, 2016. "Port multi-service congestion," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 66-70.
    6. Disney, Stephen M. & Maltz, Arnold & Wang, Xun & Warburton, Roger D.H., 2016. "Inventory management for stochastic lead times with order crossovers," European Journal of Operational Research, Elsevier, vol. 248(2), pages 473-486.
    7. Iannone, Fedele, 2012. "The private and social cost efficiency of port hinterland container distribution through a regional logistics system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(9), pages 1424-1448.
    8. Ben-Ammar, Oussama & Bettayeb, Belgacem & Dolgui, Alexandre, 2019. "Optimization of multi-period supply planning under stochastic lead times and a dynamic demand," International Journal of Production Economics, Elsevier, vol. 218(C), pages 106-117.
    9. Akio Kawasaki, 2012. "Hub location with scheduling effects in a monopoly airline market," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 805-819, December.
    10. Alumur, Sibel A. & Campbell, James F. & Contreras, Ivan & Kara, Bahar Y. & Marianov, Vladimir & O’Kelly, Morton E., 2021. "Perspectives on modeling hub location problems," European Journal of Operational Research, Elsevier, vol. 291(1), pages 1-17.
    11. César Ducruet & Hidekazu Itoh, 2022. "Spatial Network Analysis of Container Port Operations: The Case of Ship Turnaround Times," Networks and Spatial Economics, Springer, vol. 22(4), pages 883-902, December.
    12. SteadieSeifi, M. & Dellaert, N.P. & Nuijten, W. & Van Woensel, T. & Raoufi, R., 2014. "Multimodal freight transportation planning: A literature review," European Journal of Operational Research, Elsevier, vol. 233(1), pages 1-15.
    13. Thi Yen Pham & Ki Young Kim & Gi-Tae YEO, 2018. "The Panama Canal Expansion and Its Impact on East–West Liner Shipping Route Selection," Sustainability, MDPI, vol. 10(12), pages 1-16, November.
    14. de Sá, Elisangela Martins & de Camargo, Ricardo Saraiva & de Miranda, Gilberto, 2013. "An improved Benders decomposition algorithm for the tree of hubs location problem," European Journal of Operational Research, Elsevier, vol. 226(2), pages 185-202.
    15. Milad Keshvari Fard & Laurent Alfandari, 2018. "Trade-offs between the Stepwise Cost Function and its Linear Approximation for the Modular Hub Location Problem," Working Papers hal-01821280, HAL.
    16. Alumur, Sibel & Kara, Bahar Y., 2008. "Network hub location problems: The state of the art," European Journal of Operational Research, Elsevier, vol. 190(1), pages 1-21, October.
    17. Manuel Herrera & Per J. Agrell & Casiano Manrique-de-Lara-Peñate & Lourdes Trujillo, 2017. "Vessel capacity restrictions in the fleet deployment problem: an application to the Panama Canal," Annals of Operations Research, Springer, vol. 253(2), pages 845-869, June.
    18. Leachman, Robert C. & Jula, Payman, 2011. "Congestion analysis of waterborne, containerized imports from Asia to the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 992-1004.
    19. Milad , Keshvari Fard & Laurent, Alfandari, 2018. "Trade-offs between the Stepwise Cost Function and its Linear Approximation for the Modular Hub Location Problem," ESSEC Working Papers WP1805, ESSEC Research Center, ESSEC Business School.
    20. Dhyani, Sneha & Jayaswal, Sachin & Sinha, Ankur & Vidyarthi, Navneet, 2019. "Alternate Second Order Conic Programming Reformulations for Hub Location with Capacity Selection under Demand," IIMA Working Papers WP 2018-12-04, Indian Institute of Management Ahmedabad, Research and Publication Department.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:48:y:2012:i:6:p:1121-1136. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.