Scandinavian Working Papers in Economics

Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics

No 14/2014: Port Pricing: Principles, Structure and Models.

Hilde Meersman (), Siri Pettersen Strandenes () and Eddy Van de Voorde ()
Additional contact information
Hilde Meersman: University of Antwerp, Postal: Stadscampus, S.B.423, Prinsstraat 13 , 2000 Antwerpen, Belgium
Siri Pettersen Strandenes: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Eddy Van de Voorde: University of Antwerp, Postal: Stadscampus, S.B.423, Prinsstraat 13 , 2000 Antwerpen, Belgium

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-codes: D49; R48

25 pages, April 10, 2014

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SAM1414.pdf PDF-file 

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