1370. Dynamic Pricing Model for Tidal Ports
Invited abstract in session MB-32: Seaside Planning-2, stream Maritime and Port Logistics.
Monday, 10:30-12:00Room: Maurice Keyworth 1.09
Authors (first author is the speaker)
| 1. | DEEPANKAR SINHA
|
| Research, Indian Institute of Foreign Trade |
Abstract
Seaports face stiff competition, especially those in close proximity. The service improvement strategies taken by the ports are often negated by counter strategies by the competing units. Besides service improvements and value additions, dynamic pricing of port services is one of the means to retain port attractiveness. Studies have focused primarily on demand patterns, congestion levels, and environmental factors. In many tidal ports, ships can call only during the high tide, and the quantum of cargo it can carry varies with the tidal range and the vessel's speed. Thus, ports must attract ships of the right size and speed at different times of the year. There are few references on attracting ships and cargo incentivising to leverage on tidal factors. The shipping lines have challenges maintaining varied fleet types and may incur costs while switching from larger to smaller vessels or vice versa while transiting from high tide to low tide seasons. Hence, given the size of the ship, their earnings vary with the navigable draft, which deters shipping lines from ports with high draft variability. Ports can reduce vessel and cargo handling charges to compensate for shipping line charges but must ensure full utilisation of draft to gain from cargo handling charges. This paper proposes a dynamic pricing framework based on varying drafts, using maximum likelihood estimations for parameter estimation, price-demand elasticity to assess changes in revenue, and a dynamic program method.
Keywords
- Logistics
- Programming, Dynamic
- Service Operations
Status: accepted
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