Port Pricing: Principles, Structure and Models

30 Pages Posted: 9 May 2014

See all articles by Hilde Meersman

Hilde Meersman

University of Antwerp - Department of Economics

Siri Pettersen Strandenes

Norwegian School of Economics (NHH) - Department of Economics

Eddy van de Voorde

University of Antwerp - Department of Economics

Date Written: April 10, 2014

Abstract

Price level and price transparency are input to shippers’ choice of supply chain and transport mode. In this paper, we analyse current port pricing structures in the light of the pricing literature and consider opportunities for improvement. We present a detailed overview of pricing criteria, who sets prices and who ultimately foots the bill for port-of-call charges, cargo-handling fees and congestion charges. Current port pricing practice is based on a rather linear structure and fails to incorporate modern pricing tools such as price differentiation or revenue management. Consequently, ports apply neither profit maximising pricing nor pricing designed to exploit available capacity more efficiently.

Keywords: Infrastructure pricing, pricing models, seaports.

JEL Classification: D49, R48.

Suggested Citation

Meersman, Hilde and Strandenes, Siri Pettersen and van de Voorde, Eddy, Port Pricing: Principles, Structure and Models (April 10, 2014). NHH Dept. of Economics Discussion Paper No. 14/2014, Available at SSRN: https://ssrn.com/abstract=2432939 or http://dx.doi.org/10.2139/ssrn.2432939

Hilde Meersman

University of Antwerp - Department of Economics ( email )

Prinsstraat 13
Antwerp, B-2000
Belgium

Siri Pettersen Strandenes (Contact Author)

Norwegian School of Economics (NHH) - Department of Economics ( email )

Helleveien 30
N-5035 Bergen
Norway

Eddy Van de Voorde

University of Antwerp - Department of Economics ( email )

Prinsstraat 13
Antwerp, B-2000
Belgium

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