Operational shadow pricing in back haul container shipping

Minimum acceptable rates for back haul cargo are difficult for carriers to establish in practice. They depend on complex factors such as availability of empty containers in the vicinity, cost of repositioning empties and container on-hiring decisions. A shadow pricing and “shadow credit” approach is proposed and applied to an inland network. Such a model can help carriers undertake yield management at the operational level to improve financial performance in a post-conference era. Results also suggest a positive relationship between variability in the imbalance situation of laden containers in a particular trade and volatility of short-term back haul freight rates.

• Record URL:
  https://doi.org/10.1016/j.tre.2016.03.008
• Record URL:
  http://www.sciencedirect.com/science/article/pii/S1366554516000430
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Supplemental Notes:
  • Abstract reprinted with permission of Elsevier.
• Authors:
  • Goh, Shao Hung
  • Chan, Yuxian
• Publication Date: 2016-8

Language

• English

Media Info

• Media Type: Web
• Features: Figures; References; Tables;
• Pagination: pp 3-15
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 92
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Back haul; Containers; Containerships; Pricing; Shipping
• Uncontrolled Terms: Spot markets
• Subject Areas: Administration and Management; Finance; Freight Transportation;

Filing Info

• Accession Number: 01609218
• Record Type: Publication
• Files: TRIS
• Created Date: Jul 8 2016 2:13PM