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Effects of the optimal port queuing pricing on arrival decisions for container ships

Author

Listed:
  • Chen-Hsiu Laih
  • Bin Lin
  • Kuan-Yu Chen

Abstract

When arriving at a busy port, a container ship usually need to queue in anchorage waiting for a berth. If the port establishes a toll scheme, the ship may rationally adjust sailing speed and time to save the cost, otherwise she has to pay for berthing on time. Consequently container ships' arrival times at the port will be dispersed, and the queuing situation can be decreased. In this article, an optimal step toll scheme by cost equilibrium approach is designed, and all values of equilibrium queuing cost and operating cost under the scheme are obtained. According to equilibrium results in this study, we show container ships that pay the toll to berth a queuing port are those altered their original arrival times at the port before the toll established. In addition, those ships' arrival time adjusting decisions from the nontoll to the optimal step toll cases can be well investigated before tolling a queuing port.

Suggested Citation

  • Chen-Hsiu Laih & Bin Lin & Kuan-Yu Chen, 2007. "Effects of the optimal port queuing pricing on arrival decisions for container ships," Applied Economics, Taylor & Francis Journals, vol. 39(14), pages 1855-1865.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:14:p:1855-1865
    DOI: 10.1080/00036840500447765
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    Cited by:

    1. Laih, Chen-Hsiu & Sun, Pey-Yuan, 2013. "Effects of the optimal n-step toll scheme on bulk carriers queuing for multiple berths at a busy port," Transport Policy, Elsevier, vol. 28(C), pages 42-50.
    2. Naima Saeed & Dong-Wook Song & Otto Andersen, 2018. "Governance mode for port congestion mitigation: A transaction cost perspective," Netnomics, Springer, vol. 19(3), pages 159-178, December.
    3. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.

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