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Contracting in ocean transportation with empty container repositioning under asymmetric information

Citation

Yang, R and Yu, M and Lee, CY and Du, Y, Contracting in ocean transportation with empty container repositioning under asymmetric information, Transportation Research Part E: Logistics and Transportation Review, 145 Article 102173. ISSN 1366-5545 (2021) [Refereed Article]

Copyright Statement

2020 Elsevier Ltd. All rights reserved.

DOI: doi:10.1016/j.tre.2020.102173

Abstract

In the paper, we examine a contracting problem under asymmetric information in a two-port system involving two freight forwarders and one carrier providing ocean container transportation services between the two ports. We develop a two-stage game model to capture the unique characteristics of the ocean freight transportation with empty container repositioning. We first analyze the forwarders' optimal strategies, and then characterize the optimal contract for the carrier under symmetric and asymmetric information. Through computational studies, we investigate the impacts of empty container repositioning cost and information asymmetry on the system performances. The numerical experiments reveal that (1) if the market demand is likely to be high, the ocean carrier is more eager to procure private information so as to prevent profit loss from information asymmetry; (2) the degree of information asymmetry has different impacts on the empty container repositioning cost in different transportation directions.

Item Details

Item Type:Refereed Article
Keywords:oean shipping logistics, asymmetric information, screening model, two-part tariff contract, empty container
Research Division:Commerce, Management, Tourism and Services
Research Group:Transportation, logistics and supply chains
Research Field:Maritime transportation and freight services
Objective Division:Transport
Objective Group:Water transport
Objective Field:International sea freight transport (excl. live animals, food products and liquefied gas)
UTAS Author:Du, Y (Dr Bill Du)
ID Code:142290
Year Published:2021
Deposited By:Maritime and Logistics Management
Deposited On:2021-01-06
Last Modified:2021-05-18
Downloads:0

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