Evaluating Pricing Strategies for Storage in Import Container Terminals

Saurí, Sergi; Serra, Jordi; Martín, Enrique

doi:10.3141/2238-01

Cited by 13 publications

(5 citation statements)

References 11 publications

(4 reference statements)

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“…Different from Kim and Kim (2007), Sauri et al (2011) proposed an inbound container storage price model in which the storage fee before a certain time limit is flat (namely, a non-zero constant), and the storage fee after the time limit is linear with the container's storage time. They assumed that the inbound container arrival rate is stable.…”

Section: Literature Reviewmentioning

confidence: 99%

Inbound container storage pricing schemes

Kim

Lee

2015

IIE Transactions

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In ocean transportation, contractual and operational relationships may be asynchronous. A case in point is the relationship between a customer requiring inbound container storage and a container terminal operator. The customer may store inbound containers in a container terminal and will pay the ocean carrier a specific storage fee, without establishing any contractual relationship with the terminal operator. After collecting the storage fee, the ocean carrier will then pay the container terminal operator for the storage of the inbound container. In this article, we study two-level inbound container storage pricing problems involving a container terminal operator and an ocean carrier in two different inbound container storage contract systems: the free-time contract system and the free-space contract system. In each contract system, we propose a two-stage pricing game model. We derive the optimal decisions for the container terminal operator and the ocean carrier. Analysis about the coordination of the two kinds of contract system is also provided. Numerical studies are conducted to compare the outcomes of the two systems for the ocean carrier and the container terminal. The results of computational experiments reveal that the free-space contract system is a preferable strategy for busy container terminals in terms of traffic control.

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Section: Literature Reviewmentioning

confidence: 99%

Inbound container storage pricing schemes

Kim

Lee

2015

IIE Transactions

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“…Kim and Kim (2007) investigate how to determine the optimal price schedule for storing inbound containers in a container yard. But they take the storage price in the remote storage site as predetermined, Following the lines of future research proposed by Kim and Kim (2007), Saurí et al (2011) introduce a yard storage tariff to encourage early pickup of containers. The price schedule has a nonzero flat rate.…”

Section: Storage Pricing Strategiesmentioning

confidence: 99%

“…However, they only consider a regular arrival of inbound containers with a view to maximizing terminal operator's profit. Martín et al (2014) extend the work of Saurí et al (2011). They define the optimal yard fee scheme for an inbound container yard, assuming a stochastic arrival of containers by sea (the number of unloaded containers per type of ship is a random variable) and multiple vessels, and for two different purposes: maximizing the terminal operators' profits; and minimizing the overall costs of the system.…”

Section: Storage Pricing Strategiesmentioning

confidence: 99%

Sizing, pricing and common replenishment in a headquarter-managed centralized distribution center

Zhang

Huang

et al. 2016

Industrial Management &Amp; Data Systems

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Purpose – Commonly shared logistics services help manufacturing companies to cut down redundant logistics investments while enhance the overall service quality. Such service-sharing mode has been naturally adopted by group companies to form the so-called headquarter-managed centralized distribution center (HQ-CDC). The HQ-CDC manages the common inventories for the group’s subsidiaries and provides shared storage services to the subsidiaries through appropriate sizing, pricing and common replenishment. Apart from seeking a global optimal solution for the whole group, the purpose of this paper is to investigate balanced solutions between the HQ-CDC and the subsidiaries. Design/methodology/approach – Two decision models are formulated. Integrated model where the group company makes all-in-one decision to determine the space allocation, price setting and the material replenishment on behalf of HQ-CDC and subsidiaries. Bilevel programming model where HQ-CDC and subsidiaries make decisions sequentially to draw a balance between their local objectives. From the perspective of result analysis, the integrated model will develop a managerial benchmark which minimizes the group company’s total cost, while the bilevel programming model could be used to measure the interactive effects between local objectives as well as their final effect on the total objective. Findings – Through comparing the numerical results of the two models, two major findings are obtained. First, the HQ-CDC’s profit is noticeably improved in the bilevel programming model as compared to the integrated model. However, the improvement of HQ-CDC’s profit triggers the cost increasing of subsidiaries. Second, the analyses of different sizing and pricing policies reveal that the implementation of the leased space leads to a more flexible space utilization in the HQ-CDC and the reduced group company’s total cost especially in face of large demand and high demand fluctuation. Research limitations/implications – Several classical game-based decision models are to be introduced to examine the more complex relationships between the HQ-CDC and the subsidiaries, such as Nash Game model or Stackelberg Game model, and more complete and meaningful managerial implications may be found through result comparison with the integrated model. The analytical solutions may be developed to achieve more accurate results, but the mathematical models may have to be with easier structure or tighter assumptions. Practical implications – The group company should take a comprehensive consideration on both cost and profit before choosing the decision framework and the coordination strategy. HQ-CDC prefers a more flexible space usage strategy to avoid idle space and to increase the space utilization. The subsidiaries with high demand uncertainties should burden a part of cost to induce the subsidiaries with steady demands to coordinate. Tanshipments should be encouraged in HQ-CDC to reduce the aggregate inventory level as well as to maintain the customer service level. Social implications – The proposed decision frameworks and warehousing policies provide guidance for the managers in group companies to choose the proper policy and for the subsidiaries to better coordinate. Originality/value – This research studies the services sharing on the warehouse sizing, pricing and common replenishment in a HQ-CDC. The interactive decisions between the HQ-CDC and the subsidiaries are formulated in a bilevel programming model and then analyzed under various practical scenarios.

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“…They extended their research by considering that the container arrival rate is sensitive to the terminal storage charge in Holguín-Veras and Jara-Díaz [8]. Saurí et al [9] proposed a new import container storage pricing model which has a flat storage fee (a nonzero constant) before the freetime-limit.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing Scheme of Ocean Carrier for Inbound Container Storage for Assistance of Container Supply Chain Finance

Tian

2014

Discrete Dynamics in Nature and Society

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The aim of this paper is to investigate the pricing scheme of ocean carrier for inbound container storage so as to assist container supply chain finance. In this paper, how an ocean carrier should set price of inbound container storage to the customer while facing the contract from the container terminal operator is first analyzed. Then, two different contract systems, the free-time contract system which is widely used in practice and the free-space contract system which is newly developed recently, are considered. In the two different contract systems, inbound container storage pricing models are constructed, and accordingly optimal solution approaches for the ocean carrier are provided. For comparison purpose, some numerical experiments for the two different contract systems are conducted to investigate the effects of the container terminal operator’s decision on the system outcomes. Numerical experiments show that (1) the carrier is more flexible in the free-space contract system and can receive more profit by using the free-storage-space as a pooling storage system and (2) the free-space contract system benefits both the carrier in profit and the busy terminal in traffic control.

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Evaluating Pricing Strategies for Storage in Import Container Terminals

Cited by 13 publications

References 11 publications

Inbound container storage pricing schemes

Inbound container storage pricing schemes

Sizing, pricing and common replenishment in a headquarter-managed centralized distribution center

Pricing Scheme of Ocean Carrier for Inbound Container Storage for Assistance of Container Supply Chain Finance

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