Important Factors Affecting Transportation for Shippers and Potential Demand for NSR: A Conjoint Analysis of Japan
21 Pages Posted: 29 Jul 2022
Date Written: July 8, 2022
Abstract
This study utilized choice-based conjoint analysis, along with conditional logit to identify the following three research questions: RQ1: Which factor of the route is important for sippers in marine transport? RQ2: What is the potential demand for the NSR? How does the shipping cost alter the demand? RQ3: Which industry exhibits a high potential demand for the NSR? According to the results, Shipping Time, Percent Delay, Container Temperature, and Shipping Cost impact route selection by shippers. The following order was determined in terms of importance: Cost > Delay > Time > Temperature. The following values were found for the marginal willingness to pay: USD 31.7/FEU for one-day reduction, USD 35.2/FEU for 1% reduction in the delay rate of 1-3 days, and USD 456.0/FEU for a decrease in temperature inside the container from 15-45° C to 5-20° C. Furthermore, the potential probability of the selection of NSR is 39.4% if the cost is equal. When the cost increases from USD 2585/FEU to USD 2100-2150/FEU, the share becomes equal to the SCR. The Agriculture and Fisheries industry exhibited the highest potential demand, while the Chemical industry exhibited the least demand. These results led to three policy implications.
Keywords: Northern Sea Route, transportation, demand, Japan, conjoint analysis
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