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Port pricing: Principles, structure and models

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  • MEERSMAN, Hilde
  • STRANDENES, Siri Pettersen
  • VAN DE VOORDE, Eddy

Abstract

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.

Suggested Citation

  • MEERSMAN, Hilde & STRANDENES, Siri Pettersen & VAN DE VOORDE, Eddy, 2014. "Port pricing: Principles, structure and models," Working Papers 2014006, University of Antwerp, Faculty of Applied Economics.
  • Handle: RePEc:ant:wpaper:2014006
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    File URL: https://repository.uantwerpen.be/docman/irua/1e506c/145290.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. Strandenes Siri Pettersen, 2004. "Port Pricing Structures and Ship Efficiency," Review of Network Economics, De Gruyter, vol. 3(2), pages 1-10, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Infrastructure pricing; Pricing models; Seaports;

    JEL classification:

    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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