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Intermodal alliance and rivalry of transport chains: The air cargo market

Author

Listed:
  • Zhang, Anming
  • Lang, Chunmei
  • Hui, Y.V.
  • Leung, Lawrence

Abstract

This paper examines the effect of multimodal integration on the rivalry between two transport chains - a forwarder-airline alliance and an integrator - under the economies of traffic density. An improvement in multimodal integration by a forwarder-airline alliance would increase the alliance's output, while reducing the integrator's output, not only in the multimodal market but also in other markets of the cargo network. It would further increase the alliance's profit, provided the intermodal improvement is not too costly, while reducing the integrator's profit, and would likely improve both consumer surplus and total surplus. We also find that an alliance in general leads to greater market shares for the firms involved than outsourcing.

Suggested Citation

  • Zhang, Anming & Lang, Chunmei & Hui, Y.V. & Leung, Lawrence, 2007. "Intermodal alliance and rivalry of transport chains: The air cargo market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(3), pages 234-246, May.
    • Handle: RePEc:eee:transe:v:43:y:2007:i:3:p:234-246
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    Citations

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    Cited by:

    1. Álvarez-SanJaime, Óscar & Cantos-Sánchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, José J., 2013. "Competition and horizontal integration in maritime freight transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 51(C), pages 67-81.
    2. Wang, Fan & Zhuo, Xiaopo & Niu, Baozhuang, 2017. "Strategic entry to regional air cargo market under joint competition of demand and promised delivery time," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 317-336.
    3. Ren, Xiaohang & Zeng, Gudian & Dong, Kangyin & Wang, Kun, 2023. "How does high-speed rail affect tourism development? The case of the Sichuan-Chongqing Economic Circle," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
    4. Yuen, Andrew & Zhang, Anming & Hui, Yer Van & Leung, Lawrence C. & Fung, Michael, 2017. "Is developing air cargo airports in the hinterland the way of the future?," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 15-25.
    5. Álvarez-SanJaime, Óscar & Cantos-Sánchez, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, José J., 2013. "Vertical integration and exclusivities in maritime freight transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 51(C), pages 50-61.
    6. Vespermann, Jan & Wald, Andreas, 2011. "Intermodal integration in air transportation: status quo, motives and future developments," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1187-1197.
    7. Y H Yang & Y V Hui & L C Leung & G Chen, 2010. "An analytic network process approach to the selection of logistics service providers for air cargo," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(9), pages 1365-1376, September.
    8. Shiao, Guo-Chou & Hwang, Cherng-Chwan, 2013. "Analyzing competition of international air cargo carriers in the Asian general air cargo markets," Transport Policy, Elsevier, vol. 27(C), pages 164-170.
    9. Xu, Haonan & Liu, Jiaguo & Qi, Siwen, 2024. "Incentive policy for rail-water multimodal transport: Subsidizing price or constructing dry port?," Transport Policy, Elsevier, vol. 150(C), pages 219-243.
    10. Niu, Baozhuang & Dai, Zhipeng & Zhuo, Xiaopo, 2019. "Co-opetition effect of promised-delivery-time sensitive demand on air cargo carriers’ big data investment and demand signal sharing decisions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 123(C), pages 29-44.

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