Please use this identifier to cite or link to this item:
http://hdl.handle.net/10397/96022
Title: | Internalization of port congestion : strategic effect behind shipping line delays and implications for terminal charges and investment | Authors: | Jiang, C Wan, Y Zhang, A |
Issue Date: | 2017 | Source: | Maritime policy and management, 2017, v. 44, no. 1, p. 112-130 | Abstract: | This paper develops a theoretical model to analyze the congestion internalization of the shipping lines, taking into account the ‘knock on’ effect (i.e. the congestion delay passed on from one port-of-call to the next port-of-call). We find that with the presence of the knock-on effect, liners will operate less in terminals, and an increase of a liner’s operation in one terminal will decrease its operation in the other. If the liners are involved in a Stackelberg competition, whether they operate more or less in a terminal under the knock-on effect depends on the comparison between the marginal congestion costs of terminals. Furthermore, we find that the coordinated profit-maximizing terminal charges are higher than both the socially optimal terminal charges and the independent profit-maximizing terminal charges. When the knock-on effect is small, the independent profit-maximizing terminal charges are set at higher levels than the socially optimal terminal charges; but when the knock-on effect is sufficiently large, this relationship may reverse. Besides, the capacity investment rules are the same for welfare-maximizing terminal operator and coordinated profit-maximizing terminal operator, while independent profit-maximizing terminal operators invest less in capacity. The larger the knock-on effect, the larger this discrepancy. | Keywords: | Internalization Knock-on effect Port congestion Shipping line Terminal charge Terminal investment |
Publisher: | Routledge, Taylor & Francis Group | Journal: | Maritime policy and management | ISSN: | 0308-8839 | EISSN: | 1464-5254 | DOI: | 10.1080/03088839.2016.1237783 | Rights: | © 2016 Informa UK Limited, trading as Taylor & Francis Group This is an Accepted Manuscript of an article published by Taylor & Francis in Maritime Policy & Management on 04 Oct 2016 (published online), available at: http://www.tandfonline.com/10.1080/03088839.2016.1237783. |
Appears in Collections: | Journal/Magazine Article |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Wan_Internalization_Port_Congestion.pdf | Pre-Published version | 462.78 kB | Adobe PDF | View/Open |
Page views
63
Last Week
0
0
Last month
Citations as of May 19, 2024
Downloads
137
Citations as of May 19, 2024
SCOPUSTM
Citations
44
Citations as of May 16, 2024
WEB OF SCIENCETM
Citations
42
Citations as of May 16, 2024
Google ScholarTM
Check
Altmetric
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.