Port pricing: Principles, structure and models
Price 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.
|Date of creation:||Apr 2014|
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- 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.
- 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.
- Peran van Reeven, 2010. "The Effect of Competition on Economic Rents in Seaports," Journal of Transport Economics and Policy, University of Bath, vol. 44(1), pages 79-92, January.
- 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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