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The Demand for Import Services at US Container Ports

Author

Listed:
  • Christopher M Anderson

    (Department of Environmental and Natural Resource Economics, University of Rhode Island, 205 Kingston Coastal Institute, One Greenhouse Road, Kingston, Rhode Island 02818, USA)

  • James J Opaluch

    (Department of Environmental and Natural Resource Economics, University of Rhode Island, 205 Kingston Coastal Institute, One Greenhouse Road, Kingston, Rhode Island 02818, USA)

  • Thomas A Grigalunas

    (Department of Environmental and Natural Resource Economics, University of Rhode Island, 205 Kingston Coastal Institute, One Greenhouse Road, Kingston, Rhode Island 02818, USA)

Abstract

As global trade increases the interdependence of major world economies, the leading container ports of the United States are growing in importance as gateways from overseas production to domestic consumption markets. With this increased economic importance comes increased dependence of domestic and foreign economies on port practices and procedures, policy actions governing ports, and disasters (natural and otherwise) affecting port operations. Port practices, policy actions and events can affect the time it takes a ship to be serviced at a port, the price of using a port and interject schedule uncertainty at a port. These factors, in turn, affect cargo routers’ choice of port, and the economic benefit (welfare) they receive from their chosen port. In this paper, we estimate a nested logit model, using over 470 000 import shipment routing choices to determine how cost, time and schedule reliability at the top 10 US ports affect cargo routers’ port choices. From the estimated demand function, we calculate demand elasticities for actions and events affecting all ports, as well as each port individually, and ‘willingness to pay’ welfare measures to avoid increases in cost or time and decreases in reliability at top ports. Maritime Economics & Logistics (2009) 11, 156–185. doi:10.1057/mel.2009.4

Suggested Citation

  • Christopher M Anderson & James J Opaluch & Thomas A Grigalunas, 2009. "The Demand for Import Services at US Container Ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 11(2), pages 156-185, June.
  • Handle: RePEc:pal:marecl:v:11:y:2009:i:2:p:156-185
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    Citations

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    Cited by:

    1. Jordi Caballé Valls & Peter W. Langen & Lorena García Alonso & José Ángel Vallejo Pinto, 2020. "Understanding Port Choice Determinants and Port Hinterlands: Findings from an Empirical Analysis of Spain," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(1), pages 53-67, March.
    2. 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.
    3. S. Veldman & L. Garcia-Alonso & M. Liu, 2016. "Testing port choice models using physical and monetary data: a comparative case study for the Spanish container trades," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(4), pages 495-508, May.
    4. Vega, Laura & Cantillo, Víctor & Arellana, Julián, 2019. "Assessing the impact of major infrastructure projects on port choice decision: The Colombian case," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 132-148.
    5. Tho V. Le & Satish V. Ukkusuri, 2019. "Influencing factors that determine the usage of the crowd-shipping services," Papers 1902.08681, arXiv.org.
    6. Woo, Su-Han & Pettit, Stephen J. & Kwak, Dong-Wook & Beresford, Anthony K.C., 2011. "Seaport research: A structured literature review on methodological issues since the 1980s," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(7), pages 667-685, August.
    7. Carlos Pestana Barros, 2016. "Demand analysis in Angola seaports," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(6), pages 676-682, August.
    8. Li, Shengchao & Cao, Xiaoshu & Liao, Wang & He, Yongquan, 2020. "Factors in the sea ports-of-entry and road ports-of-entry cross-border logistics route choice," Journal of Transport Geography, Elsevier, vol. 84(C).
    9. 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.
    10. Flitsch, Verena & Brümmerstedt, Katrin, 2015. "Freight Transport Modelling of Container Hinterland Supply Chains," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Blecker, Thorsten & Kersten, Wolfgang & Ringle, Christian M. (ed.),Operational Excellence in Logistics and Supply Chains: Optimization Methods, Data-driven Approaches and Security Insights. Proceedings of the Hamburg , volume 22, pages 233-266, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    11. Su-Han Woo & Stephen Pettit & Anthony Beresford & Dong-Wook Kwak, 2012. "Seaport Research: A Decadal Analysis of Trends and Themes Since the 1980s," Transport Reviews, Taylor & Francis Journals, vol. 32(3), pages 351-377, January.
    12. Kashiha, Mona & Thill, Jean-Claude & Depken, Craig A., 2016. "Shipping route choice across geographies: Coastal vs. landlocked countries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 1-14.
    13. Mesa-Arango, Rodrigo & Ukkusuri, Satish V., 2014. "Attributes driving the selection of trucking services and the quantification of the shipper’s willingness to pay," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 142-158.
    14. M. A. Mueller & B. Wiegmans & J. H. R. Duin, 2020. "The geography of container port choice: modelling the impact of hinterland changes on port choice," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(1), pages 26-52, March.
    15. Xiaoxi Deng & Ying Wang & Gi-Tae Yeo, 2017. "Enterprise Perspective-based Evaluation of Free Trade Port Areas in China," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(3), pages 451-473, August.
    16. Julián Martínez Moya & María Feo Valero, 2017. "Port choice in container market: a literature review," Transport Reviews, Taylor & Francis Journals, vol. 37(3), pages 300-321, May.

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