The economic viability of container mega-ships

The economic viability of container mega-ships

0.00 Avg rating0 Votes
Article ID: iaor20063530
Country: United Kingdom
Volume: 42
Issue: 1
Start Page Number: 21
End Page Number: 41
Publication Date: Jan 2006
Journal: Transportation Research. Part E, Logistics and Transportation Review
Authors: , , ,
Keywords: game theory, networks
Abstract:

In this study, we analyze the container mega-ship viability by considering competitive circumstances. We adopt a non-zero sum two-person game with two specific strategies based on different service network configurations for different ship sizes: hub-and-spoke for mega-ship and multi-port calling for conventional ship size. A shipping characteristic for each route is approximately optimized to set up pay-off (or profit) matrixes for both players. Throughout model applications for Asia–Europe and Asia–North America trades, the mega-ship is competitive in all scenarios for Asia–Europe, while it is viable for Asia–North America only when the freight rate and feeder costs are low.

Reviews

Required fields are marked *. Your email address will not be published.