Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)
Port Pricing: Principles, Structure and Models.
(), Siri Pettersen Strandenes
() and Eddy Van de Voorde
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.; (follow links to similar papers)
JEL-Codes: D49; R48; (follow links to similar papers)
25 pages, April 10, 2014
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