The Value of Information in Container Transport: Leveraging the Triple Bottom Line
42 Pages Posted: 18 Oct 2010
Date Written: December 2010, 10
Planning the transport of maritime containers from the sea port to final destinations while using multiple transport modes is challenged by uncertainties regarding the time the container is released for further transport or the transit time from the port to its final destination. This paper assesses the value of information in container transport in terms of multiple performance dimensions, i.e. logistics costs, reliability, security, and emissions. The analysis is done using a single period model where a decision maker allocates arriving containers to two transport modes (slow, low price, no flexible departure times, versus fast, high price, flexible departure times). We construct a frontier of Pareto optimal decisions under each of the information scenarios and show that these frontiers move in a favorable direction when the level of information progresses. Each of the Pareto frontiers help strike the balance between the aforementioned performance dimensions. The mathematical results are illustrated using two numerical examples involving barge transport and train transport.
Keywords: value of information, Pareto frontier, collateral benefits, maritime container, intermodal transport
JEL Classification: M11, R4, M
Suggested Citation: Suggested Citation